Energy Focus retains Craig-Hallum to assist in evaluating strategic alternatives
On March 29, 2019, Energy Focus closed a strategic financing from a group of investors. The financing provided gross proceeds to the company of approximately $1.7M in exchange for subordinated convertible promissory notes that will convert into shares of the company's Series A Convertible Preferred Stock on either April 17, 2019 or the day following the company's annual meeting of stockholders, if stockholder approval is needed to allow full conversion of the notes under the Nasdaq market rules. In connection with the financing, the Board of Directors has appointed James Tu and Robert Farkas to join the Board, effective following the company's filing of its Annual Report on Form 10-K. Tu will also return to the position of Chairman, Chief Executive Officer and President and serve as its interim Chief Financial Officer effective April 2, 2019 and the company is conducting a search for a permanent or alternative interim Chief Financial Officer candidate. Prior to, and in parallel with, the discussions with the investor group, the company's Board of Directors retained Craig-Hallum Capital Group to act as its financial advisor to assist in conducting a thorough process to evaluate its strategic alternatives aimed at maximizing shareholder value, including the possible sale of some or all of the company. In connection with this process, the Board of Directors determined that the strategic financing was the most favorable option for the company and its stockholders at this time. In connection with the completion of this strategic process, the company's Chairman of the Board, Chief Executive Officer and President, Ted Tewksbury, and Jerry Turin, the company's Chief Financial Officer since May 2018, resigned from all positions, in each case, effective following the company's filing of its Annual Report on Form 10-K. Also, in connection with the completion of this process, and under the terms of the financing, current Board members, Ron Black, Marc Eisenberg and Satish Rishi resigned at the same time.