FT. LAUDERDALE, Fla., March 14 /PRNewswire-FirstCall/ -- Ener1, Inc.
(OTC Bulletin Board: ENEI) announced today that it has signed definitive
agreements for a private placement of convertible debentures and warrants for
gross proceeds of $14,225,000. The debentures are being purchased by select
institutional investors, led by New York City-based Satellite Strategic
Finance Associates LLC and Satellite Strategic Finance Partners Ltd.
Satellite and other investors in this financing also participated in Ener1's
convertible debenture financing in January 2004. The proceeds of the
financing will be used to fund corporate operations and commercialization of
the Company's key technologies.
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Kevin Fitzgerald, Chairman and Chief Executive Officer, commented, "This
financing will help us accelerate Ener1's progress, which has already been
substantial. We have strategic alliances in place with major companies, such
as Delphi Corporation, that are leading suppliers to the markets that we are
targeting. These strategic relationships will help us speed commercialization
of our technologies. We anticipate shipping batteries in production quantities
before the end of 2005."
Mr. Fitzgerald added, "It is an important ongoing vote of confidence that
investors from our 2004 debenture financing are participating in this private
The debentures have a four-year term, carry interest of 7.5 percent
(subject to adjustment), are convertible into Ener1 common stock at an initial
price of $1.00 per share and are subject to conversion at Ener1's option upon
Ener1's achievement of certain milestones. The warrants, which have a five-
year term, are for a total of 4,267,500 shares of Ener1 common stock at an
exercise price of $1.15 per share and 2,845,000 shares of Ener1 common stock
at an exercise price of $1.25 per share. The debentures and warrants are being
sold to accredited investors in reliance on Regulation D under the Securities
Act of 1933, as amended. The transaction is subject to customary closing
Since Ener1's 2004 debenture financing, the Company has made significant
strides in achieving its business plan, including the formation with Delphi
Corporation, in October 2004, of EnerDel, its lithium battery company. That
acquisition bolstered Ener1's battery business by providing EnerDel with the
lithium-battery technologies, equipment and engineering resources from one of
the world's largest automotive components suppliers. In addition, Pankaj
Dhingra, former head of Delphi's Energy Management Systems business, joined
the Company as President of its Energy Group in December 2004.
Ener1 recently announced its plan to acquire Giner Electrochemical
Systems, a leading fuel-cell company with a backlog of contracts and customers
that include major companies such as General Motors and Boeing.
S.G. Cowen & Co. acted as the sole placement agent for this transaction.
This announcement is neither an offer to sell nor a solicitation of an
offer to buy any of these securities. The debentures and warrants have not
been registered under the Securities Act of 1933 and may not be offered or
sold in the United States absent registration or an applicable exemption from
registration requirements. Ener1 has agreed to file a registration statement
with the Securities and Exchange Commission, following the closing of the sale
of the debentures and warrants, registering the resale of the shares to be
issued upon conversion of the debentures and exercise of the warrants.
About Ener1, Inc.
Ener1, Inc. (OTC Bulletin Board: ENEI) develops and markets new
technologies and products for clean, efficient energy sources. These include
lithium batteries and battery packs through EnerDel, Inc., its majority-owned
venture with Delphi Corp., fuel cell components and testing services through
its EnerFuel, Inc. subsidiary, and nanotechnology-based materials and
manufacturing processes and components through its NanoEner, Inc. subsidiary.
Ener1's products have applications for a broad range of markets that include
power tools and industrial equipment, medical devices, hybrid vehicle
propulsion, personal mobility, and applications for Homeland Security and
National Defense. For more information on Ener1's products, please visit its
Web site at http://www.ener1.com or call (954) 556-4020.
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, the closing of the
private placement of Ener1's 7.5% Senior Secured Convertible Debentures due
2009 and the use of the proceeds of such financing, the ability of Ener1 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, the possibility that the Giner
Electrochemical Systems ("GES") acquisition will not be completed, that the
results of the GES acquisition will be unfavorable or that GES will not
perform as anticipated, and other risks detailed in Ener1's annual report on
Form 10-KSB for the year ended December 31, 2003, as well as in its other
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.
Investors, Michael Mason, 212-691-8087, email@example.com or
Media, Len Hall, 949-474-4300, firstname.lastname@example.org, both of Allen & Caron for
SOURCE Ener1, Inc.