Nanotechnology Now

Our NanoNews Digest Sponsors

Heifer International

Wikipedia Affiliate Button

Home > Press > ENER1 Receives Commitment for $65 Million Equity Investment

Abstract:
Ener1, Inc. (Nasdaq: HEV), a global manufacturer of large-format lithium-ion battery systems for automotive and utility grid applications, today announced that it has executed an agreement with its principal shareholder, Ener1 Group, for the purchase of common stock and warrants for $65 million. The investment, which is expected to close later this week, is subject to customary closing conditions.

ENER1 Receives Commitment for $65 Million Equity Investment

New York, NY | Posted on June 1st, 2010

"The commitment of new capital from Ener1 Group is another strong vote of confidence from our most significant shareholder," said Ener1, Inc. CEO and Chairman Charles Gassenheimer. "Even in this difficult capital markets environment, Ener1 has a compelling growth story that is clearly able to attract the type of long term private equity capital needed to scale our business. Further evidence of this ability is reflected by our ongoing discussions with one of our significant shareholders to increase their investment in Ener1 to a level necessary to achieve positive cash flow."

Ener1 Group will purchase 18,678,161 shares of common stock and 8 million warrants. The warrants, three million of which are exercisable into Ener1 common stock at a strike price of $3.48, and five million with a strike price of $4.40, have a five-year maturity and are not exercisable for six months from the date of issuance.

Ener1 Group is an investment vehicle established by Russian industrialist and entrepreneur Boris G. Zingarevich, 50, a long-established world leader in the sustainable forest products industry who more recently branched out into commercial real estate development and clean technology. Mr. Zingarevich currently sits on the board of a joint venture between a Russian manufacturing company he co-founded and International Paper Company, the largest pulp and paper company in the world.

"It is clear to see that technological innovation, particularly in the energy field, will be a key driver for economic development in the 21st century," commented Mr. Zingarevich, whose principal business is based in St. Petersburg, traditionally Russia's window on the west. "Thanks to new possibilities in energy storage, transportation electrification and smart grids are two developments happening now that will change economies and society in many positive ways."

Ener1's principal operating subsidiary, EnerDel, Inc., announced last month that it had achieved an important automotive-grade certification, Production Part Approval Process (PPAP), for THINK, the maker of the world's first fully homologated pure electric vehicle, and had begun shipping battery packs to be installed in THINK vehicles for commercial sale in European and North American markets.

Today's new capital injection adds to funds from the U.S. Energy Department (DOE) under the federal government's Advanced Battery Manufacturing Initiative to ramp up production at EnerDel's facilities in Indianapolis to a rate of 900 electric vehicle battery packs per month, a production point at which EnerDel expects to be EBITDA break-even. EnerDel has also entered the term sheet negotiation phase with DOE on a long-term, low-interest loan under the Advanced Technology Vehicle Manufacturing Program.

The new equity injection for Ener1, Inc. comes on the heels of the company's announcement last week of a manufacturing joint venture with Wanxiang Corporation, the largest tier-one supplier to the Chinese auto industry. This joint venture is expected to provide Ener1 with access to such potential Chinese customers as SAIC, Chana, Haima, Guangzhou and Yutong, the world's second-largest bus maker.

Ener1 has also been engaged in negotiations with leading Russian companies interested in energy storage applications for the electrical grid specific to that region's vast expanse and disparate population centers. "We have been monitoring high-level discussions between the two countries' governments regarding American facilitation of smart grids in Russia," said Mr. Gassenheimer. "Ener1 is ideally positioned technologically to address this Russian need in the immediate term and to realize commercial potential on a scale few markets other than China or Russia can offer."

Ener1, Inc. also announced today that Mr. Zingarevich has been appointed to the Ener1 board to fill a vacancy created by an increase in the number of Board members. "Mr. Zingarevich has long taken the fruits of his commercial success in traditional industries and put them behind a technology company that he believes in," commented Mr. Gassenheimer. "We are very fortunate to have the immediate benefits of his decades of industrial experience, knowledge of global markets and strong vision of the future of the world economy, as well as access to emerging customer opportunities in Russia."

Safe Harbor Statement

Certain statements made in this press release constitute forward-looking statements that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. All forward-looking statements speak only as of the date of this press release and the company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

####

About ENER1
Ener1 develops and manufactures compact, high performance lithium-ion batteries to power the next generation of hybrid, plug-in hybrid and pure electric vehicles. The publicly traded company (Nasdaq: HEV) is led by an experienced team of engineers and energy system experts at its EnerDel subsidiary located in Indiana. In addition to the automobile market, applications for Ener1 lithium-ion battery technology include the military, grid storage and other growing markets. Ener1 also develops commercial fuel cell products through its EnerFuel subsidiary and nanotechnology-based materials and manufacturing processes for batteries and other applications through its NanoEner subsidiary.

For more information, please click here

Contacts:
INVESTOR RELATIONS
Rachel Carroll
ENER1 Inc.
Phone: 212 920 3500


MEDIA RELATIONS
Jon Coifman
Waggener Edstrom Worldwide
Phone: 212 551 4815


Copyright © PrNewswire

If you have a comment, please Contact us.

Issuers of news releases, not 7th Wave, Inc. or Nanotechnology Now, are solely responsible for the accuracy of the content.

Bookmark:
Delicious Digg Newsvine Google Yahoo Reddit Magnoliacom Furl Facebook

Related News Press

News and information

A nano-roundabout for light December 10th, 2016

Keeping electric car design on the right road: A closer look at the life-cycle impacts of lithium-ion batteries and proton exchange membrane fuel cells December 9th, 2016

Further improvement of qubit lifetime for quantum computers: New technique removes quasiparticles from superconducting quantum circuits December 9th, 2016

Scientists track chemical and structural evolution of catalytic nanoparticles in 3-D: Up-close, real-time, chemical-sensitive 3-D imaging offers clues for reducing cost/improving performance of catalysts for fuel-cell-powered vehicles and other applications December 8th, 2016

Investments/IPO's/Splits

Harris & Harris Group Issues Letter to Shareholders and Information for Shareholder Call on Tuesday, November 15, 2016 November 14th, 2016

Harris & Harris Group Issues Business Update and Reports Financial Statements as of September 30, 2016 November 9th, 2016

Forge Nano raises $20 million in Series A Funding: Nano coating technology innovator Forge Nano will use funding to expand manufacturing capacity and grow Lithium-Ion battery opportunities November 3rd, 2016

Harris & Harris Group Notes Announcements by Its Portfolio Companies During the Third Quarter of 2016 September 30th, 2016

Announcements

A nano-roundabout for light December 10th, 2016

Keeping electric car design on the right road: A closer look at the life-cycle impacts of lithium-ion batteries and proton exchange membrane fuel cells December 9th, 2016

Further improvement of qubit lifetime for quantum computers: New technique removes quasiparticles from superconducting quantum circuits December 9th, 2016

Chemical trickery corrals 'hyperactive' metal-oxide cluster December 8th, 2016

Energy

Research Study: MetaSOLTM Shatters Solar Panel Efficiency Forecasts with Innovative New Coating: Coating Provides 1.2 Percent Absolute Enhancement to Triple Junction Solar Cells December 2nd, 2016

Deep insights from surface reactions: Researchers use Stampede supercomputer to study new chemical sensing methods, desalination and bacterial energy production December 2nd, 2016

Throwing new light on printed organic solar cells December 1st, 2016

Physics, photosynthesis and solar cells: Researchers combine quantum physics and photosynthesis to make discovery that could lead to highly efficient, green solar cells November 30th, 2016

Battery Technology/Capacitors/Generators/Piezoelectrics/Thermoelectrics/Energy storage

Keeping electric car design on the right road: A closer look at the life-cycle impacts of lithium-ion batteries and proton exchange membrane fuel cells December 9th, 2016

Researchers peer into atom-sized tunnels in hunt for better battery: May improve lithium ion for larger devices, like cars December 8th, 2016

Novel Electrode Structure Provides New Promise for Lithium-Sulfur Batteries December 3rd, 2016

A Phone That Charges in Seconds? UCF Scientists Bring it Closer to Reality November 21st, 2016

NanoNews-Digest
The latest news from around the world, FREE




  Premium Products
NanoNews-Custom
Only the news you want to read!
 Learn More
NanoTech-Transfer
University Technology Transfer & Patents
 Learn More
NanoStrategies
Full-service, expert consulting
 Learn More











ASP
Nanotechnology Now Featured Books




NNN

The Hunger Project