Energy
Battery Maker Rakes in $10 Million Funding (ABAT)
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Chinese lithium-ion battery maker Advanced Battery Technologies, Inc. (NASDAQ: ABAT) will sell $10 million worth of preferred stock and warrants to three institutional investors. The warrants, which are 180-day Class B Warrants, are worth $10 million, if exercised.
Advanced Battery did not name the buyers, but did say that the deal included 10,000 shares of Series E 0% Convertible Preferred Stock, which will convert to about 2.6 million common shares at $3.79/share; Class A warrants to purchase about 1.2 million shares of common stock at $4.92/share within five and a half years; the additional block of 2.6 million Class B warrants; and an unspecified number of Class C warrants to purchase stock at $5.68/share within five and a half years.
The company plans to use the funds to provide working capital for its Wuxi ZhongQiang Autocyle Company expansion plans, which we wrote about yesterday.
Advanced Battery shares have fallen about 6.25% on the news, to $3.60/share. The stock’s 52-week range is $1.17-$6.40.
Paul Ausick
May 28, 2009
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