Financing to expand capacity at facilities, increase working capital
By Devika Patel
Knoxville, Tenn., Sept. 23 - Ener1, Inc. arranged a $20 million private placement of stock with its principal shareholder, Ener1 Group, on Sept. 21, according to an 8-K filed Thursday with the Securities and Exchange Commission. The financing is expected to close next week.
Ener1 Group purchased 5,665,723 common shares at about $3.53 per share, along with 2,426,670 warrants. The price per share is a 3.02% discount to the Sept. 20 closing share price of $3.64.
Of the five-year warrants, 910,000 are exercisable at $3.53 and 1,516,670 are exercisable at $4.46. The strike prices reflect 3.02% and 22.53% premiums to the Sept. 20 share price.
Ener1 has raised over $160 million this year through a combination of private placements and strategic investments. The company will use these proceeds to increase its working capital and install 260 MW hours, or capacity for 11,000 electric vehicle battery packs, at its three Indianapolis facilities.
"Ener1 set out to raise $150 million at the start of 2010, to meet near-term manufacturing objectives," chairman and chief executive officer Charles Gassenheimer said in a press release.
"This milestone has now been met. Over $300 million has been invested in the company over the last five years in achieving the steps to commercialization, and building a global manufacturing footprint.
"With this most recent investment, Ener1 can more aggressively move forward with its plan to build out production capacity in the United States to 260 MW hours, and match its Korea-based capacity."
Fort Lauderdale, Fla.-based Ener1 is an alternative energy technology company.
| Issuer: | Ener1, Inc.
|
| Issue: | Common shares
|
| Amount: | $20 million
|
| Shares: | 5,665,723
|
| Price: | $3.53 (approximate)
|
| Warrants: | 2,426,670
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.53 (for 910,000 warrants), $4.46 (for 1,516,670 warrants)
|
| Pricing date: | Sept. 21
|
| Stock symbol: | Amex: HEV
|
| Stock price: | $3.47 at close Sept. 21
|
| Market capitalization: | $510.29 million
|
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