A123 Systems meets conditions for release of $30M of restricted cash; new direct offering of stock and warrants for $9M net
Li-ion battery maker A123 Systems has notified the holders of its 6.00% senior convertible notes of the satisfaction of the conditions for the release of $30 million of restricted cash related to such notes that is subject to an account control agreement.
The company expected that the $30 million will become unrestricted and available for general corporate purposes subject to the delivery of administrative release documentation from the note holders on or about 6 July 2012.
The company also announced that it had entered into a definitive agreement with existing institutional investors to sell (i) an aggregate of 7,692,308 shares of its common stock at an offer price of $1.30 per share, subject to certain adjustments based upon the exercise of the warrants described below, and (ii) warrants to purchase additional shares of Common Stock in a registered direct offering for gross proceeds of approximately $10.0 million.
The net proceeds to A123 from the sale of the stock and warrants, after deducting the placement agent’s fees and other estimated offering expenses, are expected to be approximately $9.0 million.
The offering is expected to close on or about 10 July 2012, subject to the satisfaction of customary closing conditions. Lazard Capital Markets LLC served as the sole placement agent for the offering.