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Lead-Carbon Battery Company Axion Power Completes $26M Private Placement Stock Offering

Axion Power International, Inc., the developer of advanced lead-carbon PbC batteries (earlier post), recently completed a private placement of an aggregate of 45,757,572 shares of its common stock to institutional and individual investors at a price of $0.57 per share for total gross proceeds of $26,081,490. Proceeds will be used to add needed electrode production lines and for working capital.

Axion technology platform. Source: Axion. Click to enlarge.

Axion Power has developed several technological improvements to traditional lead-acid batteries, and owns numerous patents covering them. Its best-known development is the PbC battery, which substitutes activated carbon for lead on the negative electrode of an otherwise traditionally manufactured absorbed glass mat (AGM) lead-acid battery.

Resulting enhancements include deeper cycling, longer life, elimination of sulfation and shedding on the negative plate, lighter weight, and easier and more rapid recharging capabilities.

Axion believes this new battery technology is the only class of advanced battery that can be assembled on existing lead-acid battery production lines throughout the world without significant changes to production equipment and fabrication processes. It also believes it will be able to manufacture carbon electrode assemblies in volume at low cost using standard automated production methods that are commonly used in other industries.

If and when its electrode manufacturing methods are fully developed, Axion believes it will be able to sell carbon electrode assemblies as virtual plug-and-play replacements for lead-based negative electrodes used by all other lead-acid battery manufacturers. Axion’s future goal, after filling its plant’s lead-carbon battery production capacity, is to become the leading supplier of carbon electrode assemblies for the global lead-acid battery industry.

The investors included Special Situations Funds, Manatuck Hill Partners and Narragansett Strategic Master Fund. In connection with the offering, the holders of Axion’s outstanding 8% Cumulative Convertible Senior Preferred Stock converted their shares into an aggregate of 1,390,944 shares of common stock and the requisite holders of outstanding Series A Preferred Stock agreed to convert their shares into an aggregate of 8,785,483 promptly after the closing.

In addition, The Quercus Trust, an existing investor in the Company, agreed to certain amendments to its existing agreements with the Company and agreed to certain transfer restrictions on its securities for a year after the closing.

The shares of common stock issued in the offering have not been registered under the Securities Act of 1933, as amended, or applicable state law and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Company has agreed to register the shares issued for resale under applicable federal and state securities laws.

The placement agents for the offering were Dallas-based Stonegate Securities; King of Prussia PA-based Emerging Growth Equities; and Philadelphia-based The Philadelphia Brokerage.


Henry Gibson

Axion and EFFPOWER need to team up for even lighter weight high volatge batteries. ..HG..

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