By Devika Patel
Knoxville, Tenn., June 1- Ener1, Inc. said it will complete a $65 million private placement of stock with its principal shareholder, Ener1 Group.
The company will sell 18,678,161 common shares and 8 million warrants to the investor. Of the five-year warrants, 3 million are exercisable at $3.48 and the remaining 5 million are exercisable at $4.40. They are not exercisable for six months from the date of issuance.
This capital injection adds to funds from the U.S. Energy Department under the federal government's Advanced Battery Manufacturing Initiative to ramp up production at EnerDel's facilities in Indianapolis to a rate of 900 electric vehicle battery packs per month, a production point at which EnerDel expects to be EBITDA break-even.
The new equity infusion comes on the heels of the company's announcement last week of a manufacturing joint venture with Wanxiang Corp., the largest tier-one supplier to the Chinese auto industry. This joint venture is expected to provide Ener1 with access to such potential Chinese customers as SAIC, Chana, Haima, Guangzhou and Yutong, the world's second-largest bus maker.
Fort Lauderdale, Fla.-based Ener1 is an alternative energy technology company.
| Issuer: | Ener1, Inc.
|
| Issue: | Common stock
|
| Amount: | $65 million
|
| Shares: | 18,678,161
|
| Warrants: | 8 million
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.48 (for 3 million warrants), $4.40 (for 5 million warrants)
|
| Investor: | Ener1 Group
|
| Pricing date: | June 1
|
| Stock symbol: | Amex: HEV
|
| Stock price: | $3.48 at close May 28
|
| Market capitalization: | $481 million
|
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