Capstone Green Energy Holdings, Inc. (OTCQX: CGEH) has announced a transformative $112.5 million strategic investment led by Monarch Alternative Capital LP. This investment includes the issuance of $80 million in newly issued senior convertible preferred stock and $15 million in common stock. The transaction aims to retire legacy preferred equity for $85 million, simplifying the company's capital structure and enhancing its balance sheet. The remaining proceeds will be allocated towards general working capital and growth initiatives, particularly in the AI data center market. The investment is expected to close on or about March 31, 2026, subject to customary closing conditions. The new Series A Preferred Stock will be convertible into common stock at an initial price of $5.00 per share and will accrue a cumulative paid-in-kind dividend at a rate of 5.00% per annum. This strategic move is anticipated to strengthen Capstone's position in the clean energy sector and facilitate its listing on a national securities exchange. The company has committed to appointing two independent directors to its board as part of the investment agreement, reflecting Monarch's significant stake in the company. This investment not only validates Capstone's progress but also sets a clear path for future growth and operational execution.

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