By Devika Patel
Knoxville, Tenn., July 1 - Axion Power International, Inc. said it took in $10 million in the third and final tranche of an $18 million private placement of units with the Quercus Trust. The deal priced Jan. 15, the same day the company raised $4 million in the first tranche. Axion raised $4 million in the second tranche on April 9.
Quercus agreed to purchase 1,904,762 units at $2.10 per unit in each of the first two tranches. It bought 4,761,905 units in this tranche. These units will consist of one share and a warrant for one common share.
Each unit in the first tranche includes one share and a warrant to purchase 1.5 common shares. Each unit in the second tranche includes a share and a warrant to buy 1.25 shares.
The warrants are exercisable at $2.60 per share for five years.
Merriman Curhan Ford and Co. was the placement agent.
Proceeds will be used to complete developmental work, expand manufacturing and begin marketing battery products.
New Castle, Pa.-based Axion specializes in developing energy storage devices.
Issuer: Axion Power International, Inc.
Issue: Units
Amount: $18 million
Units: 8,571,429 (1,904,762 in the first closing; 1,904,762 in the second closing; 4,761,905 in the final closing)
Price: $2.10
Warrants: For each unit, one warrant for 1.5 shares (first closing); a warrant for 1.25 shares (second closing); a warrant for one share (final closing)
Warrant strike price: $2.60
Warrant expiration date: Five years
Placement agent: Merriman Curhan Ford and Co.
Investor: Quercus Trust of Los Angeles
Announcement date: Jan. 15
| Settlement date: | Jan. 14 (for $4 million), April 9 (for $4 million), July 1 (for $10 million)
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| Stock symbol: | Pink sheets: AXPW
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| Stock price: | $2.10 at close on Jan. 15
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