NEW CASTLE, Pa., Feb. 7, 2012 /PRNewswire/ -- Axion Power International, Inc. (OTC Bulletin Board: AXPW), the developer of advanced lead carbon PbC® batteries and energy storage systems, announced that as of February 3, 2012 it has completed a registered direct common stock offering providing gross proceeds of approximately $9.4 million. The shares sold, par value $0.0001, were priced at $0.35, which was the volume-weighted average price of the shares over a 40-day trading period prior to the commencement of the offering. The shares were sold pursuant to a shelf registration statement declared effective July 14, 2011. Net proceeds of approximately $8.6 million after the expenses of the offering and placement fees, will be used for working capital, capital expenditures and general corporate purposes.
Chairman & CEO Thomas Granville commented, "We are glad to put this financing behind us. Raising funds in the current capital market environment is very difficult, and even though we have a number of continuing options and expressed interests from a variety of capital providers, almost all seem to contain terms and conditions that run contrary to the Company's best long-term interest. We were happy to find a straight 'equity - discount to market opportunity' that was provided by a group primarily made up of institutions and individuals who had participated in our previous fundings. We appreciate their continued faith in us. As we move forward with this new funding, we will focus on the markets where our PbC® product provides the most value, namely railroads, hybrid-vehicles, PowerCube™ opportunities on both sides of the meter, oil well applications and residential power quality and energy storage."
Co-placement agents for the offering were Philadelphia Brokerage Corporation and Emerging Growth Equities Ltd. The prospectus supplement and the base prospectus can be found at http://1.usa.gov/zs3HVo.
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.
About Axion Power International, Inc.
Axion has developed and patented a next generation energy storage device that won the prestigious Frost & Sullivan Technology Award for North America in the field of lead-acid batteries. According to Frost & Sullivan, Axion's new PbC batteries have "the potential to revitalize the lead-acid battery industry by breathing new life into an established technology that is not well suited to the requirements of important new applications like hybrid electric vehicles and renewable power."
Axion Power International, Inc. is the industry leader in the field of lead-acid-carbon energy storage technologies. Axion believes this new battery technology is the only class of advanced battery that can be assembled on existing lead-acid battery production lines throughout the world utilizing Axion's proprietary carbon electrodes. Axion's future goal, after filling their plant's lead-carbon battery production capacity, is to become the leading supplier of carbon electrode assemblies for the global lead-acid battery industry.
For more information, visit www.axionpower.com
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.
Axion Power International, Inc.
Charles Trego, CFO
Allen & Caron Inc
Rudy Barrio (Investors)
Len Hall (Media)
SOURCE Axion Power International, Inc.