“The expected proceeds from this financing will be used for working capital and general corporate purposes, including our ongoing sales and marketing and research and development programs,” said Robert L. Kanode, Valence Technology president and CEO. “We welcome Seaside’s investment and appreciate the continued support from all our shareholders.”
The price of the shares to be sold at today’s initial closing will be $1.45, a 12% discount to the 10 day volume weighted average trading price (“VWAP”) of the Company’s common stock ending October 14, 2009. At each scheduled closing, the price of the shares of common stock to be issued will be determined by applying a 12% discount to the 10-day VWAP preceding the closing. If, with respect to any subsequent closing, the three-day VWAP immediately preceding the closing is below $1.00 per share, then the closing will not occur and the aggregate number of shares of common stock that will be purchased under the Agreement will be reduced by 650,000 shares. If the dollar amount of the investment on any scheduled closing date is more than double the amount of the investment on the prior closing date, then Seaside has the option to reduce the number of shares purchased on that date to an amount no less than double the amount of the investment in the prior closing date.
Seaside has also committed in the stock purchase agreement that it has not sold short any of Valence’s shares nor will it do so in the future while it is a common stockholder. There are no warrants associated with this agreement. Valence has the right to discontinue the agreement after six closings and under certain other conditions either party may terminate the stock purchases by Seaside.
Lithium Iron Magnesium Phosphate (LiFeMgPO4) Battery Modules
Valence has enjoyed enormous success with our U-Charge® range of energy storage solutions. The energy storage solutions market is undergoing a fundamental shift away from chemistries such as lead acid and nickel metal hydride towards lithium-ion ("lithium-ion" is a battery category that includes "lithium iron magnesium phosphate"). Valence’s lithium iron magnesium phosphate solutions have been at the forefront of this shift and the U-Charge® Power System Family has been commercially addressing this market since 2006.
Providing the power of lithium, the unsurpassed safety of phosphate, and the optimized energy storage of intelligent packs, Valence’s U-Charge® Power System family of products has now been installed in more than one hundred applications since it was launched in 2006, offering proven performance. U-Charge® family has now found its way into an array of electric vehicle applications such as cars, trucks, vans, buses, scooters and boats. It has also been providing solutions in telecoms back-up and UPS applications.
Offering excellent cycle life of 3-4 times that of lithium cobalt U-Charge® battery modules are 33% lighter than their lead acid equivalent batteries. U-Charge® also offers twice the run-time of lead acid with deep depth of discharge cycling.
The U-Charge® family of battery modules offers a scalable modular approach, offering up to 700 volts or up to 1,000 Ah in custom solutions. The modules are packaged in standard lead acid BCI format sizes suited for a variety of motive applications. The power system also has a longer shelf life and a faster recharge time than lead-acid without the problem of leaks. Read more about lithium iron magnesium phosphate Vs Lead Acid
The U-Charge® product range includes both the RT series of modules used for lower voltage, lower power applications, and the XP series of modules for higher voltage, higher power and higher capacity applications. The XP series combines with a flexible Battery Management System (BMS) to provide many system integration options.
Valence is offering the securities in this agreement pursuant to an effective shelf registration statement. The offering is being made only by means of a prospectus. Copies of the final prospectus supplement and accompanying base prospectus relating to the offering can be obtained from going to the Investor Relations section of the Company website at www.valence.com and clicking on the SEC filings link or from the U.S. Securities and Exchange Commission’s website at www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sales of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
Valence Technology is an international leader in the development of lithium iron magnesium phosphate energy storage solutions. The company has redefined lithium battery technology and performance by marketing the industry’s first safe, reliable and rechargeable lithium iron magnesium phosphate battery. Founded in 1989, Valence today offers a proven technology and manufacturing infrastructure that delivers ISO-certified products and processes that are protected by an extensive global patent portfolio. Headquartered in Austin, Texas, Valence has facilities in Nevada, China and Northern Ireland. Valence is traded on the NASDAQ Capital Market under the ticker symbol VLNC. For more information, visit www.valence.com.