In addition, the Company will issue to the investors warrants to purchase up to 3,750,000 shares of common stock, which, if fully exercised, would provide an additional $15 million in gross proceeds to the Company. The warrants have an exercise price of $4.00 per share and are exercisable for one year and one week following the closing date.
The Company anticipates that the capital raised in this registered direct placement will be used for acquisitions and expansion of the Company’s battery manufacturing facility.
The offering is expected to close on or about December 3, 2010, subject to satisfaction of customary closing conditions.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc., acted as the exclusive placement agent for the transaction.
The securities described above are being offered pursuant to a shelf registration statement (File No. 333-161384), which was declared effective by the United States Securities and Exchange Commission ("SEC") on September 2, 2009. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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. Early in 2009, the Company acquired Wuxi Angell Autocycle Co. Ltd., an electric vehicle business, and renamed it Wuxi Zhongqiang Autocycle Co., Ltd. ("Wuxi ZQ"). The Company has a New York office, with its executive offices and manufacturing facilities in China.