Arista Power, Inc. (OTCPK:ASPW) announced that it has entered into a securities purchase agreement of 1,500 series A convertible preferred stock for gross proceeds of $1,500,000 with eight institutional investors on March 31, 2014. The company will also issue five-year warrants to purchase up to 11,250,000 additional common shares of $0.25 per share. The preferred stock is convertible into common shares of the company at conversion price of $0.20 per share. The investors will be entitled to receive cumulative dividend at 9% per annum, payable quarterly on September 30, December 31, March 31 and June 30, beginning on the second such date after the original issue date and on each conversion date in cash. If the dividends are not paid within three trading days following a dividend payment date, the company will pay late fee at the rate of 18% per annum or the lesser rate permitted by applicable law which shall accrue daily from the dividend payment date through and including the date of actual payment in full. The company issued securities pursuant to exemption provided under Regulation D. The minimum investment accepted from any outside investor is $25,000. The warrants and the preferred stock have customary anti-dilution protections and registration rights. The net proceeds from the transaction were $1,405,000, after deducting expenses of $95,000. The investors received rights of first refusal and rights of participation in future financings of the company until March 31, 2015 and also received most favored nation protections on the terms and conditions of the warrants and preferred stock so long as such securities remain outstanding. Additionally, until September 30, 2015, each investor has the right to invest the amount invested by such investor in this transaction in preferred stock of the company on substantially similar terms. The company will pay no brokerage, finder's fees, commissions, or due diligence fees with respect to the transaction. Dov Schwell of Schwell Wimpfheimer & Associates LLP acted as legal advisor to the company. Grushko & Mittman, P.C. acted as legal advisor to the investor. The company paid $20,000 to Grushko & Mittman, P.C. as the legal fees.

On March 31, 2014, Arista Power, Inc. closed the transaction.