WALTHAM, Mass., May 11, 2012 (GLOBE NEWSWIRE) --
A123 Systems (Nasdaq:AONE), a developer and manufacturer
of advanced Nanophosphate® lithium iron phosphate batteries
and systems, today announced a private offering of $50
million aggregate principal amount of its Senior Unsecured
Convertible Notes and Warrants to qualified institutional
buyers pursuant to Rule 144A under the Securities Act of
1933, as amended (the "Act"). The Company intends
to use the proceeds from the sale of the Notes for general
corporate purposes.
The Notes will bear interest at a rate of 6.00% per year,
subject to certain adjustments, and mature in July, 2013. The
Notes will be convertible, at the holder's option, into
shares of the Company's common stock initially at a fixed
conversion price, subject to certain adjustments. The
Company will be required to redeem 1/28th of the principal
amount of Notes, subject to certain adjustments,
semi-monthly. Interest and amortization payments may be
settled in common stock of the Company, subject to certain
conditions. Holders of the Notes will also have certain
number of optional voluntary conversion rights.
Holders of the Notes will have the right to require the
Company to redeem up to $25 million aggregate principal
amount of the Notes if the Company does not obtain
stockholder approval to issue an additional number of shares
of the Company's common stock in connection with
conversion of the Notes and interest and amortization
payments settled in common stock of the Company by June 30,
2012.
In conjunction with the Convertible Offering, the Company
shall issue warrants equal to 30% of the number of shares of
Common Stock the Investor would receive if the Notes were
converted in full at the initial Conversion Price. The
Warrants expire in May 2017.
The offering is expected to close on or about May 18, 2012,
subject to the satisfaction of customary closing conditions.
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 company's proprietary
Nanophosphate® technology is built on novel nanoscale
materials initially developed at the Massachusetts Institute
of Technology and is designed to deliver high power and
energy density, increased safety and extended life. A123
leverages breakthrough technology, high-quality manufacturing
and expert systems integration capabilities to deliver
innovative solutions that enable customers to bring
next-generation products to market. For additional
information please visit www.a123systems.com.
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 closing of
the offering and the expected use of 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, revalidation and
increased efficiency of A123's manufacturing capacity,
delays in A123's production ramp, 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-K for the
year ended December 31, 2011 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 protected]
A123 Systems IR Contact:
ICR, LLC
Garo Toomajanian
617-972-3450
[email protected]
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