123 Systems Announces Registered Direct Offering of 7.7M Common Stock at $1.30
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.
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