Lighting Science Group Completes $18 Million Private Placement

Lighting Science Group Corporation (OTC Bulletin Board: LSCG), a leading American maker of LED lighting, completed an $18 million private placement of its common stock on January 26, 2011. The purchase price of the shares purchased in connection with this private placement represents a discount of less than 3% to the closing price of the company’s common stock on the date the company’s Committee of Independent Directors approved the transaction. Pegasus Partners IV, L.P., the company’s largest equityholder, and two of its operating advisors purchased 3,167,333 shares of common stock for an aggregate purchase price of $10,452,200. Michael Kempner, who is also an operating advisor of Pegasus and a director of the company, and Leon Wagner, a director of the company, purchased 60,606 and 634,394 shares of common stock, respectively, for a purchase price of $200,000 and $2,093,500. The remainder of the shares were purchased by trusts affiliated with, and business associates of, Mr. Wagner, including Irwin Simon, founder, chairman and chief executive officer of Hain Celestial; Richard Ruben, chief executive officer of Ruben Companies, which owns and manages over five million square feet of office and residential properties in New York, Washington, D.C. and Boston, and chairman of Workspeed Holdings; Stanley Fleishman, president and chief executive officer of Jetro Cash & Carry Enterprises, one of the fastest growing suppliers of grocery stores and foodservice operators in the country and the parent company of Restaurant Depot, a wholesale restaurant supplier with 49 locations in the U.S.; and Beny Alagem, owner of the Beverly and Cabo San Lucas Hilton Hotels.