iQ Power extends subscription period for 8% convertibles indefinitely

By Angela McDaniels

Tacoma, Wash., Feb. 3 - iQ Power AG extended the subscription period for its 8% convertible bonds due Jan. 20, 2017 for an indefinite period, according to a company news release.

The company announced on Nov. 14 that it plans to sell up to €5.6 million of the convertibles through a rights offering. So far, €2.26 million of convertibles have been subscribed for.

"Given the current difficult situation on the international capital markets, the placement - despite the attractive structuring of the convertible bond - needs a longer time frame [than] originally planned," the company said the in release.

iQ Power is also exploring other financing options.

As previously reported, the convertibles will be issued at par of €5,000.

Shareholders can subscribe for one bond for every 407,928 registered shares held. The subscription period began Nov. 21 and was originally scheduled to end on Dec. 2.

The board of directors is authorized to offer any unsubscribed convertibles to other interested investors at the same terms as part of a private placement.

The bonds will be convertible through Dec. 31, 2016. The conversion price will be €0.048, which equals a conversion ratio of 104,166 shares per €5,000 principal amount of convertibles.

The convertibles are not callable. Holders will have a put option on Dec. 31, 2013, Dec. 31, 2014 and Dec. 31, 2015.

Bondholders will be granted a dividend settlement in the event that iQ Power should distribute a dividend during the term of the convertibles.

Proceeds will be used to increase working capital and for investments in the company's battery manufacturing and recycling plant in Bosnia-Herzegovina.

Steubing AG is acting as adviser to iQ Power.

iQ Power makes eco-friendly starter batteries for motor vehicles. It is based in Zug, Switzerland.

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