FT. LAUDERDALE, Fla., Feb. 8 /PRNewswire-FirstCall/ -- Ener1, Inc.
(OTC: ENEI) announced today that its majority shareholder, Ener1 Group, Inc.
has exercised warrants for 34.5 million shares of the Company's common stock
to provide $2.76 million in immediate working capital financing to the Company
to fund operations. The Company indicated that Ener1 Group intends to
exercise the warrants for another 34.5 million shares of the Company's common
stock to provide an additional $2.76 million in funds to the Company once it
reaches a definitive agreement with Ener1 Group regarding terms and conditions
for Ener1 Group's early exercise of the warrants.
The warrants involved, which were issued in connection with the Company's
purchase from Ener1 Group of its initial battery operations in September 2002,
are 10 year warrants with an exercise price of $0.08 per share. The Company
believes the exercise of the warrants will remove a significant market
overhang for the Company's stock, which the Company hopes will help to broaden
market participation in its stock and potentially make future outside
The Company expects that the definitive agreement, which the Company hopes
to consummate in the very near future, will contain, among other provisions,
milestone requirements that will have to be completed as a condition to Ener1
Group's exercise of the additional 34.5 million warrants, including, e.g.,
completion of the Company's 2005 audit and restatement of its 2004 audited
financial statements, filing of the Company's Form 10-KSB for 2005 and filing
of restated Company financial statements for the quarters ended March 31 and
June 30, 2005. The Company believes that it will be able to meet these
accounting milestones on a timely basis.
The current and contemplated financing reflects the increased level of
attention and support from the Company's majority shareholder that follows a
recent management reorganization of Ener1 and its majority shareholder. Among
the changes were: appointment of veteran financial executive Charles
Gassenheimer as CEO of Ener1 Group and Chairman and Director of the Company,
Ronald Stewart as Interim Chief Executive Officer of the Company, Gerard
Herlihy as Chief Financial Officer of the Company and the election of well
known Wall Street company builder and financial executive Marshall Cogan as
Strategic Advisor to Ener1 Group and Director of the Company. The Company's
senior management team also includes Ulrik Grape, President of EnerDel and
Executive Vice President of Ener1, Inc. and newly appointed Rex Hodge
President of the Company's EnerFuel group and Executive Vice President of
Charles Gassenheimer remarked, "Ener1 Group's willingness to step up at
this point to finance the Company's continuing operations reflects its
increased confidence in the Company's future based not only on Ener1, Inc.'s
recently strengthened management team and new sense of management discipline,
but also on actual operational progress in the Company's business plan
development and execution. Ener1, Inc. is moving ahead on all fronts with an
increased sense of fiscal responsibility and pragmatic approach to
commercializing its many useful technologies. I think this will lead to
positive results and increased potential for the Company's shareholders."
About Ener1, Inc.
Ener1, Inc. (OTC: 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%; 49% of Enerstruct, a
Japanese lithium battery technology company in which Ener1's strategic
investor ITOCHU owns 51%; wholly owned subsidiary EnerFuel, a fuel cell
products and testing 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 http://www.ener1.com.
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; Ener1's
plans to reduce costs and gain a competitive advantage by consolidating
manufacturing operations and implementing automated production processes;
charges Ener1 will incur in connection with consolidating manufacturing
operations; 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.