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PbC battery maker Axion Power raises $10M

8 May 2013

Axion Power International, Inc., the developer of advanced lead-carbon PbC batteries and energy storage systems, has completed a private placement of $9 million principal amount of senior convertible notes and warrants with institutional investors and an additional $1 million principal amount of subordinated unsecured convertible notes and warrants in an ancillary transaction with directors, officers and one of the original Axion founders. Maxim Group LLC acted as placement agent.

On the senior convertible notes of $9 million, Axion at closing received approximately $2.6 million in proceeds, net of placement fees and expenses, and will receive nine subsequent monthly tranches. The notes carry an 8% interest rate and have a nine-month amortization schedule with interest beginning at closing and can be paid, at the company’s option, in cash or in discounted registered shares.

In addition, the investors are entitled to convert the note, or any portion of the note, into shares, utilizing the 105% premium to market price determined at closing ($.26.4). The investors are also entitled to approximately 50% warrant coverage in 5-year warrants, at a 120% premium to market price ($.30.2), that will not be exercisable for six months after the closing. Any funds received from warrant conversion to common stock would be incremental to the offering.

On the subordinated unsecured convertible notes of $1 million, Axion at closing received $1.0 million in proceeds as there were no placement fees or expenses. The notes bear accruable interest at the rate of 8% and the principal and interest are both payable at the end of the term, or when certain thresholds have been met, in cash, or in shares, at the option of the lender.

May 8, 2013 in Brief | Permalink | Comments (3) | TrackBack (0)

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Comments

Very expensive $$$$. No wonder that many others run up to the Federal and States authorities for hand outs?

Amen, Harvey. What happened to this company? 3-4 years ago they had a great lead in advanced PbC batteries, and the possible applications were many. Now what?

Would this company need cheaper money or very low interest loans (guaranteed by the country) to survive?

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