alpha-En Corporation announced that it has entered into a preferred stock purchase agreement for a private placement of 1,950 series A preferred shares at a price of $1,000 per share for gross proceeds of $1,950,000 on February 8, 2018. The transaction was led by new investor Pitroda Group LLC and three members of the management team. The preferred shares carry fixed cumulative dividends at a rate equal to 10% simple interest per annum. Accrued dividends will be payable quarterly based on a 365-day year and may be paid in cash or in additional shares of preferred shares. The preferred shares are convertible into 572 common shares, subject to customary increases or decreases for stock splits, stock dividends recapitalizations and the like, and may be convert to common stock at any time after issuance at the option of a holder. The company also issued 500 warrants entitle the holder to purchase one additional common share at $2 per share for a period of five years. The company will have the right to redeem all or a portion of the preferred shares. The company expected to issue 2,100 series A preferred shares in the transaction. The company issued the securities pursuant to exemption provided under Regulation D.