Ener1 Receives $32 Million Equity Injection
Additional $43 Million Possible Within 180 Days
FORT LAUDERDALE, Fla., Nov. 20 /PRNewswire-FirstCall/ -- Ener1, Inc. , an alternative energy company, today announced completion of a $32 million common equity private placement with a group of six major financial institutions and an alternative energy investment trust.
The company sold 64 million shares of common stock and issued warrants to purchase 57.6 million shares of common stock at an exercise price of $0.75 per share. The warrants can be exercised for a period of 180 days following the closing. If exercised, the short-term warrants will provide an additional $43 million, for a total of $75 million of equity capital at an average price of $0.62 per share.
"This vote of confidence from some of the largest financial investors in the world solidifies our balance sheet and puts Ener1 in the game to compete for contracts with the biggest players in the automotive market," commented company chairman Charles Gassenheimer. "In particular, this makes our EnerDel battery division more competitive to win major new hybrid, plug-in hybrid and electric vehicle (HEV, PHEV and EV) contracts."
EnerDel will demonstrate a hybrid electric vehicle with a working EnerDel Lithium ion battery at the International Electric Vehicle Symposium and Exposition (EVS-23) December 2-5 in Anaheim, California (visit http://www.electricdrive.org/evs23/). EnerDel is also scheduled to deliver a prototype electric vehicle battery to Think Global of Norway in March 2008 under a $70 million production contract.
Transaction proceeds will be used to fund the continued development and commercialization of Ener1's alternative energy generation and energy storage businesses. The company may also use the proceeds of any warrant exercises to purchase some or all of the remaining senior secured convertible debentures, potentially eliminating up to 40 million shares of dilution.
"We believe that this transaction resolves any uncertainty about our future financing activity," commented Mr. Gassenheimer. "We have now positioned Ener1 to list on a major stock exchange and we will have normal access to the capital markets in the future."
As a follow up to the chairman's letter to shareholders last week, Ener1 is on track to present a balance sheet with positive shareholders' equity. On a pro forma basis, shareholders' equity would be a positive $38 million if the warrants were exercised; the shareholders' deficit was $(75) million in January 2006 when the current management team took over.
Stonegate Securities acted as the placement agent for the transaction.
About Ener1, Inc.
Ener1, Inc. is an alternative energy technology company that is developing: 1) lithium ion batteries for hybrid electric vehicles (HEV) at its 80.5% owned EnerDel subsidiary through corporate ventures and strategic partnerships with Delphi, ITOCHU and EnerStruct; 2) commercial fuel cell products through its EnerFuel subsidiary; and 3) nanotechnology-based materials and manufacturing processes for batteries and other applications at its NanoEner subsidiary. For more information, visit http://www.ener1.com or call 954-556-4020.
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