A123 Systems Announces Registered Direct Offering of Common Stock and Warrants
WALTHAM, Mass., July 6, 2012 (GLOBE NEWSWIRE) -- A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate® lithium ion batteries and systems, today announced that it has entered into a definitive agreement with existing institutional investors to sell (i) an aggregate of 7,692,308 shares of its common stock ("Common Stock"), at an offer price of $1.30 per share, subject to certain adjustments based upon the exercise of the warrants described below, and (ii) warrants to purchase additional shares of Common Stock in a registered direct offering for gross proceeds of approximately $10.0 million. The net proceeds to A123 from the sale of the stock and warrants, after deducting the placement agent's fees and other estimated offering expenses, are expected to be approximately $9.0 million. The number of shares of Common Stock issuable upon exercise of the warrants (which have a nominal exercise price) is based on a fixed 18% discount to the volume-weighted average price, or VWAP, of our common stock on specified trading days during two measurement periods over the next three weeks.
The offering is expected to close on or about July 10, 2012, subject to the satisfaction of customary closing conditions. Lazard Capital Markets LLC served as the sole placement agent for the offering.
The offering is being made pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission. A prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the U.S. Securities and Exchange Commission, and when available, can be obtained at the Securities and Exchange Commission's website http://www.sec.gov or from Lazard Capital Markets LLC, 30 Rockefeller Plaza, 60th Floor, New York, NY 10020 or via telephone at (800) 542-0970.
This press release shall not constitute an offer to sell nor a solicitation of an offer to buy any of these securities, nor shall there be any offer, solicitation or sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
About A123 Systems
A123 Systems, Inc. (Nasdaq:AONE) is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications.
The A123 Systems, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6600
Safe Harbor Disclosure
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors, including statements with respect to the timing for the closing of the offering and the expected proceeds from the offering. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: delays in the development of A123's products, delays in the scale-up and increased efficiency of A123's manufacturing capacity, the potential for manufacturing defects, the possibility that the known defect could take longer and/or be more expensive to correct than anticipated, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which A123 operates, and other risks detailed in A123 Systems' 10-Q for the quarter ended March 31, 2012 and other publicly-available filings with the Securities and Exchange Commission. All forward-looking statements reflect A123's expectations only as of the date of this release and should not be relied upon as reflecting A123's views, expectations or beliefs at any date subsequent to the date of this release.
CONTACT: A123 Systems PR Contact: A123 Systems Dan Borgasano 617-972-3471 email@example.com Edelman Courtney Kessler 212-277-3720 firstname.lastname@example.org A123 Systems IR Contact: ICR, LLC Garo Toomajanian 617-972-3450 email@example.com
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