Energy Focus Inc (EFOI)

[FUNMAN]

EFOI is doing a secondary.

800 shares traded today. EFOI is a secret but may be getting ready to become better known.

http://irdirect.net/filings/viewer/index/924168/000143774914013365/

The price should drop to $4 just based on the dilution/math.

I am watching EFOI much more closely now. If the price drops I will buy some more. I am beginning to believe the slightly revamped management team really does have a new plan and new customer pipeline.

I do like:

1) They will be a long-term-debt-free company.

2) They are funding 2-and-a-half times their current inventory. You hope they know what they are doing and customers are lined up. Maybe there is more than one school in the pipeline.

3) They are increasing their manufacturing equipment by one-third.

4) They are increasing their office presence by a factor of 200%.



USE OF PROCEEDS

We estimate that the net proceeds from the sale of the 2,500,000 shares of common stock we are offering will be approximately $11,095,658 (assuming a public offering price of $4.90 per share, which was the last reported sale price of the common stock on July 21, 2014) after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. If the underwriters’ overallotment option is exercised in full, we estimate the net proceeds of the additional shares we sell will be approximately $12,813,721, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

We intend to use the net proceeds of this offering to finance certain capital expenditures and for working capital and other general corporate purposes. We expect these expenditures to include:


? $1,000,000 for the purchase of manufacturing equipment;

? $350,000 for the purchase and implementation of a new enterprise resource planning system;

? $5,000,000 to finance inventory purchases;

? $1,000,000 to expand our sales office presence;

? $300,000 to retire outstanding long term debt; and

? the remainder for working capital and other general corporate purposes.

The foregoing describes our present estimates of our use of the net proceeds of this offering based on our current plans and estimates of anticipated expenses. Our actual expenditures may vary from these estimates. Accordingly, our management will have broad discretion in the amount and timing of the application of the net proceeds to our working capital and capital expenditure requirements, and investors will be relying on the judgment of our management regarding such application of the proceeds from this offering.