NEW YORK, May 28, 2009 (GLOBE NEWSWIRE) -- Advanced Battery Technologies, Inc. (Nasdaq:ABAT) announced today that it has agreed to sell convertible preferred stock and warrants to three institutional investors. The investors will purchase the preferred stock and warrants for $10 million cash. The securities being sold include 180-day Class B Warrants that, if exercised, will yield another $10 million in gross proceeds. The Company may demand exercise of the Class B Warrants if certain market conditions are satisfied.
The investors will receive:
-- 10,000 shares of Series E 0% Convertible Preferred Stock. The
Preferred Stock will have an aggregate face value of $10 million,
and will be convertible into common stock at $3.79 per share --
i.e. a total potential conversion into 2,638,523 common shares.
-- Class A Warrants to purchase 1,187,335 shares of common stock for
$4.92 per share. The Class A Warrants will expire in five years
and six months.
-- Class B Warrants to purchase 2,638,523 shares of common stock for
$3.79 per share. The Class B Warrants will expire in 180 days if
there is an effective registration statement permitting resale of
the underlying common stock and the Company's shareholders have
approved an increase in the authorized common stock. If, during
the life of the Class B Warrants, the closing bid price for the
Company's common stock exceeds $4.75 for ten consecutive trading
days with at least 400,000 shares trading volume, then the
Company is entitled to force the holders of the Class B Warrants
to exercise the Warrants and purchase all 2,638,523 shares.
-- Class C Warrants to purchase shares of common stock for $5.68 per
share. The number of shares that may be purchased will equal 25%
of the number of shares sold upon exercise of the Class B
Warrants. The Class C Warrants expire in five years and six
months.
Advanced Battery Technologies plans to use the net proceeds from the offering primarily to provide working capital to its recently acquired subsidiary, Wuxi ZhongQiang Autocycle Co., Ltd. The Company has agreed to register for resale the common stock underlying the preferred stock and warrants. Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq:RODM), acted as the exclusive placement agent for this transaction.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. There shall not be any sale of these securities in any jurisdiction in which such offering would be unlawful. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.
About Advanced Battery Technologies, Inc
Advanced Battery Technologies, Inc., founded in September 2002, develops, manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries. The Company's products include rechargeable PLI batteries for electric automobiles, motorcycles, mine-use lamps, notebook computers, walkie-talkies and other electronic devices. ABAT's batteries combine high-energy chemistry with state-of-the-art polymer technology to overcome many of the shortcomings associated with other types of rechargeable batteries. Wuxi ZhongQiang Autocycle Co., Ltd, founded in 2002, develops and manufactures various types of electric vehicles. Wuxi ZhongQiang owns three types of products listed in the E-Bike directory, with more than 20 varieties: electric bikes; agricultural transport vehicles for practical transportation; sport utility e-vehicles such as scooters, off-road vehicles, go-karts, snow scooters, sea scooters, as well as underwater propeller vehicles. Wuxi ZhongQiang products are exported to countries and regions in Europe, the United States and Asia. The Company has a New York office, with its executive offices and manufacturing facilities in China. For more information about Advanced Battery Technologies, Inc. (ABAT), please visit: http://www.abat.com.cn.
Safe Harbor Statement
Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.