NEW CASTLE, Pa., Nov. 5, 2015 /PRNewswire/ -- Axion Power
International, Inc. (Nasdaq: AXPW), a developer of advanced
lead-carbon PbC® batteries, energy storage systems and frequency
regulation systems, announced today that it has completed a private
placement of $9.0 million principal
amount of senior convertible notes and warrants with institutional
investors.
Maxim Group LLC acted as sole placement agent in connection with
the transaction.
At closing, Axion will receive approximately $1.60 million in proceeds, net of placement fees
and expenses, and will receive seven subsequent monthly tranches in
the principal amount of $1,000,000
each and an eighth monthly tranche in the principal amount of
$150,000. The notes carry
interest at 9% per annum and have a twelve-month amortization
schedule with interest beginning at closing and can be paid, at the
Company's option, in cash or in discounted registered shares,
assuming certain equity conditions set forth in the notes are met.
In addition, the investors are entitled to convert the note, or any
portion of the note, into shares, utilizing the 105% 'premium to
market' price determined at closing ($1.23). The investors are also entitled to
approximately 150% warrant coverage in 24-month warrants, with an
exercise price equal to the lower of 110% of the market price at
closing ($1.29) and 85% of the market
price at the time of exercise. Any funds received from warrant
exercise to common stock would be incremental to the offering.
The full terms of the transaction have been filed in an 8-K
dated November 5, 2015, and we
encourage investors to read the filing for a better understanding
of all terms of the funding.
This press release does not and shall not constitute an offer to
sell, or the solicitation of an offer to buy, any of the
securities, nor shall there be any sale of securities in any state
or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration under the securities laws of any
state or jurisdiction.
About Axion Power International, Inc.
Axion Power is an industry leader in lead-carbon energy
storage. Its PbC battery technology utilizing proprietary
activated carbon electrodes is the only advanced battery that can
be assembled on existing lead-acid production lines throughout the
world. Axion Power's primary goal is to become the leading supplier
of carbon electrode assemblies for lead-acid battery companies
around the world.
For more information, visit www.axionpower.com
Forward-looking Statements
Certain statements in this Press Release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are based on our
current expectations and beliefs and are subject to a number of
risk factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. Such risks and uncertainties include the risk for the
Company to complete its development work, as well as the risks
inherent in commercializing a new product (including technology
risks, market risks, financial risks and implementation risks, and
other risks and uncertainties affecting the Company), as well as
other risks that have been included in filings with the Securities
and Exchange Commission, all of which are available
at www.sec.gov. We disclaim any intention or
obligation to revise any forward-looking statements, including,
without limitation, financial estimates, whether as a result of new
information, future events, or otherwise.
Contacts
Axion Power International, Inc.
Danielle Baker, Chief Accounting
Officer
info@axionpower.com
DresnerAllenCaron
Rudy
Barrio (Investors)
rbarrio@dresnerallencaron.com
(212) 691-8087
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SOURCE Axion Power International, Inc.