IPO Still Awaits as Fallbrook Raises $39M

San Diego’s Fallbrook Technologies says today it has raised about $39 million in a Series E preferred stock private placement that encompasses $6 million the company disclosed in a June regulatory filing.

Fallbrook, which has spent more than a decade developing advanced technology for a continuously variable transmission, says the latest deal brings its cumulative financing to about $95 million since 2000. The company apparently arranged this latest private financing to help shore up its balance sheet after filing for a $50 million initial public offering in February. The IPO remains active.

Fallbrook’s coninuously variable transmission is used in automotive accessory drives (such as air conditioning compressors), and as the primary transmission in electric vehicles, bicycles, riding lawn-mowers, and small wind turbines. Fallbrook says its technology can lower overall energy costs in each of these areas by improving performance and fuel economy.

A new international investor, Macquarie Capital Markets Canada, and related parties provided most of the financing in the latest deal. Other new international investors included Sustainable Asset Management of Switzerland, and Ningbo Shentong Auto Decorations Co. of China. Existing investors NGEN Partners of California and Robeco of The Netherlands also participated in the round.

“The extra capital will support the commercial development of Fallbrook’s innovative and proprietary NuVinci transmission technology into five current target markets,” said Bill Klehm III, Fallbrook’s chairman and CEO. “Fallbrook is entering an exciting new phase as we transition from development to an emphasis on commercialization,” Klehm says in the statement.

Fallbrook plans to use the net proceeds from the Series E financing for working capital, product development and general corporate purposes.

Bruce V. Bigelow was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Follow @bvbigelow

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