The company will issue a total of 7,500,000 shares to the institutional investors. In addition, Advanced Battery is going to issue warrants to purchase up to 3,750,000 additional shares of common stock. If the warrants are exercised, the company would raise an additional $15 million in gross proceeds. The warrants have an exercise price of $4.00 per share and expire one year and one week after the offering’s closing date.
Advanced battery listed the use of proceeds to be used for acquisitions and for the expansion of its battery manufacturing facility. Rodman & Renshaw acted as the exclusive placement agent for the transaction. The market cap before the effects of any offerings was $293 million as of its $4.28 price.
With one minute until the open, shares were down 6.5% at $4.00 on 75,000 shares pre-market. The 52-week trading range is $3.02 to $4.80.
JON C. OGG
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