FT. LAUDERDALE, Fla., June 30 /PRNewswire-FirstCall/ -- Ener1, Inc.
(OTC Bulletin Board: ENEI) announced today that it has obtained additional
long term financing from its majority shareholder, privately held Ener1
Group, Inc., to fund the Company's ongoing operations. The $3.0 million
financing consists of 10% convertible subordinated notes with no principal
or interest payments until maturities of the notes in 2009, plus warrants.
Ener1 Inc. Chairman Charles Gassenheimer commented, "The continued vote
of confidence of our majority shareholder is an indication of their faith
in our technologies, and in the potential rewards of the markets we will
serve -- primarily Hybrid Electric Vehicles and Hydrogen Fuel Cells for
transportation and other purposes. We appreciate this new financing, and
look forward to achieving major milestones this year in both our principal
planned product lines."
The new financing follows on $5.52 million in equity financing
announced by the Company in February of this year and which was provided
over the last several months from Ener1 Group's exercise of 69 million $.08
warrants originally issued in 2002, which warrant financing was also
recently completed. Pursuant to the Company's agreement with Ener1 Group
for the warrant financing, as filed with the SEC, at the completion of the
warrant financing, the Company issued to Ener1 Group 20 million immediately
exercisable, ten-year warrants to purchase shares of the Company's common
stock at $.50 per share.
The notes are subordinated in all respects to the rights of the holders
of the Company's senior secured convertible debentures due 2009, issued in
2004 and 2005. The notes are convertible into shares of Ener1, Inc. common
stock at $.50 per share at the election of the holder. In connection with
the notes, the Company issued nine million immediately exercisable, five
year warrants to purchase shares of the Company's common stock at an
exercise price of $.50 per share.
The new convertible subordinate note financing brings the Company's
total financing from Ener1 Group to approximately $8.4 million over the
last several months, reflecting the increased level of attention and
support from the Company's majority shareholder that has followed the
Company's management reorganization of Ener1 in the beginning of this year.
About Ener1, Inc.
Ener1, Inc. (OTC Bulletin Board: ENEI) is an alternative energy
technology company. The company's interests include: 80.5% of EnerDel
(www.enerdel.com), a lithium battery company in which Delphi Corp. owns
19.5%; 48% of Enerstruct, a Japanese lithium battery technology company in
which Ener1's strategic investor ITOCHU owns the majority interest; wholly
owned subsidiary EnerFuel, a fuel cell products and services company
(www.enerfuel.com); and wholly owned subsidiary NanoEner, which develops
nanotechnology-based materials and manufacturing processes for batteries
and other applications (www.nanoener.com). For more information, visit
Safe Harbor Statement This release contains forward-looking statements
within the meaning of the Federal Private Securities Litigation Reform Act
of 1995 conveying management's expectations as to the future based on
plans, estimates and projections at the time the statements are made. The
forward- looking statements contained in this press release involve risks
and uncertainties, including, but not necessarily limited to, EnerDel's
ability to succeed as a supplier of batteries to the hybrid electric
vehicle and other markets; Ener1's ability to successfully develop and
market proposed lithium battery, fuel cell and nanotechnology-based
products and services; the degree of competition in the markets for lithium
battery, fuel cell and nanotechnology-based products and services, Ener1's
history of operating losses, the lack of operating history for the
development stage Ener1 businesses, the need for additional capital, the
dependency upon key personnel and other risks detailed in its filings from
time to time with the Securities and Exchange Commission. These risks and
uncertainties could cause actual results or performance to differ
materially from any future results or performance expressed or implied in
the forward-looking statements included in this release. Ener1 undertakes
no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.
Contact: Joe Allen (investors) Alys Daly
Allen & Caron Inc. Ener1, Inc.
212 691 8087 954 202 4442 or 305 815-0312
SOURCE Ener1, Inc.