NEW YORK, July 2, 2009 (GLOBE NEWSWIRE) -- Advanced Battery Technologies, Inc. (Nasdaq:ABAT), a leading developer, manufacturer and distributor of rechargeable Polymer Lithium-Ion (PLI) batteries, today announced that on June 30, 2009 the NASDAQ Stock Market sent written notice to Advanced Battery Technologies that its private placement of Series F 0% Convertible Preferred Stock on June 17, 2009 did not comply with NASDAQ Listing Rule 5640. The notice further stated, however, that Advanced Battery Technologies has regained compliance with Rule 5640 and that the matter is closed.
On June 17, 2009 Advanced Battery Technologies issued 7,000 shares of Series F Preferred Stock in a private placement. The holders of the Series F Preferred Stock, as originally issued, were entitled to cast at any shareholders meeting a number of votes equal to the number of common shares into which their Series F Preferred Stock would be convertible at a conversion rate of $4.00. However, on the date on which Advanced Battery Technologies contracted to issue the Series F Preferred Stock, the market price of the common stock was $4.23. The Staff of the NASDAQ Stock Market determined that affording the holders of the Preferred Stock voting rights based on a discounted conversion price constituted a violation of NASDAQ Listing Rule 5640, which states:
Voting rights of existing Shareholders of publicly traded common
stock registered under Section 12 of the Act cannot be
disparately reduced or restricted through any corporate action or
issuance.
On June 24, 2009 Advanced Battery Technologies filed an amendment to the Certificate of Designation of the Series F Preferred Stock. The amendment changed the voting rights of the holders of the Series F Preferred Stock, such that the holders are now entitled to cast votes equal to the number of shares of common stock into which the Preferred Shares would be convertible if the conversion price were $4.23. As a result of that amendment the Staff of the NASDAQ Stock Market notified Advanced Battery Technologies that it has regained compliance with Rule 5640.
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.