On November 3, LPPFusion, Inc., (formally Lawrenceville Plasma Physics, Inc.) announced the launch of its sixth stock offering. This is an offering of 20,000 shares at $125 per share to raise $2.5 million. “The purpose of this offering is to allow us to increase our budget, hire additional staff and complete the Phase I research needed to reach our first goal of demonstrating net fusion energy production in the laboratory, “explains LPPFusion President and Chief Scientist Eric J. Lerner. “It will also give us the funds needed to prepare the transition towards Phase II, the much larger development effort needed to go from a laboratory demonstration to a working prototype Focus Fusion generator.” LPPFusion is working to develop nuclear-waste-free Focus Fusion generators. This will be a safe, clean, unlimited source of energy that will be cheaper than any energy source now available.
In previous share offerings, LPPFusion has raised $5 million. The per-share price on the new offering is a 25% increase over the last offering. The LPPFusion Board of Advisors voted the price increase on the basis of the significant progress made since the 2011 launch of the preceding share offering at $100 per share. During this time, LPPFusion research has demonstrated the achievement of record–breaking 1.8 billion-degree temperatures, identified key steps to increasing plasma density and made substantial progress in implementing those steps, and has substantially increased its funding. These developments have, in the Board of Advisors’ view, reduced the risks of investing in LPPFusion and thus justified the price increase.
In accordance with LPPFusion’s Shareholders Agreement, only the existing shareholders have the opportunity to purchase shares from the new offering until December 1, 2015. After that, this offering will be available to all qualified investors. To invest, US citizens, wherever they reside, and those residing in the US, must be accredited investors, having an income of more than $200,000 per year or net assets of more than $1 million. Non-US investors are advised to follow their own nation’s investment laws and regulations.
This announcement is not an offering to sell shares, nor a solicitation to buy them. The offering itself is made in a Private Placement Memorandum, available on request to qualified investors. Those interested may contact email@example.com.
Coincidentally, a few days before LPPFusion’s announcement the US Securities and Exchange Commission (SEC) approved new rules that will allow non-accredited US individuals to invest in offerings such as this one. The new rules, which will go into effect in mid-2016 will allow anyone in the US to invest $2,000, or up to 5% of their income or net worth (whichever is larger) in share offerings of small companies. Such offerings will be able to raise only $1 million in any 12 month period. In addition, only 500 non-accredited investors will be able to invest in a given company whose shares are not SEC-approved. Despite the restrictions, the new rules should open up investment in LPPFusion to a larger number of people in the US.