By Sheri Kasprzak
Atlanta, Nov. 30 - Valence Technology Inc. said Tuesday it will exchange its series C convertible preferred stock for two new classes of preferreds. It has also priced a $7.5 million private placement of common shares.
The company's series C preferreds, representing $8.6 million of the principal, will be exchanged for $4.3 million series C-1 and $4.3 million series C-2 preferreds.
Both of the new series of preferreds are convertible into common shares at $4 each, carry a 2% dividend and mature Dec. 15, 2005.
Valence will not receive any proceeds from the exchange.
The company also announced Tuesday that it plans to raise $7.5 million through a private placement.
The offering consists of 2.5 million shares at $3.03 each.
A.G. Edwards Inc. was placement agent in both transactions.
Valence is an Austin, Texas-based lithium-ion battery technology company. It plans to use the proceeds from the deal for working capital and general corporate purposes.
Issuer: | Valence Technology Inc.
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Issue: | Stock
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Amount: | $7.5 million
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Shares: | 2.5 million
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Price: | $3.03
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Warrants: | No
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Placement agent: | A.G. Edwards Inc.
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Announcement date: | Nov. 30
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Stock price: | $3.90 at close Nov. 29
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