Valence Technology Announces Private Placement of 2.07M Shares at $0.97/Share on Jan 13

In January 13, 2012, Berg & Berg Enterprises, LLC (“Berg & Berg”) purchased 2,078,068 shares of Valence Technology, Inc. (NASDAQ: VLNC) common stock at a price per share of $0.97, the closing bid price of the Company's common stock on the purchase date. The purchase price for the shares was $2,015,726.03. Payment of the purchase price consisted of the surrender of the promissory note issued by the Company on October 24, 2011 to Berg and Berg, under which $2,000,000.00 in principal and $15,726.03 in accrued interest was outstanding. This summary of the terms of the sale of shares to Berg & Berg is qualified by the text of that certain Letter Agreement dated January 13, 2012 between the Company and Berg & Berg, a copy of which is attached to this Form 8-K as Exhibit 10.1 and is incorporated herein by reference. The shares were issued in a private placement transaction exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(2) thereof. Under Rule 144 of the Securities Act, these shares are restricted from being traded by Berg & Berg for a period of six months from the date of issuance, unless registered, and thereafter may be traded only in compliance with the volume restrictions imposed by this rule and other applicable restrictions.