Li-ion maker ENER1, Inc. has executed a securities purchase agreement with its principal shareholder, Ener1 Group, for the purchase of common stock and warrants for $20 million. The financing is expected to close next week. Ener1 has raised in excess of $160 million in equity in 2010, through a combination of private placements and strategic investments.
Ener1 will use these additional funds along with its grant from the United States Department of Energy under the American Recovery and Reinvestment Act, to fund an immediate increase in working capital and to help achieve its intended manufacturing plans to install 260 MW hours, or capacity for 11,000 electric vehicle battery packs, at its three Indianapolis facilities.
Ener1 set out to raise $150 million at the start of 2010, to meet near-term manufacturing objectives. This milestone has now been met. Over $300 million has been invested in the company over the last five years in achieving the steps to commercialization, and building a global manufacturing footprint. With this most recent investment, Ener1 can more aggressively move forward with its plan to build out production capacity in the United States to 260 MW hours, and match its Korea-based capacity.—Chairman and CEO of Ener1 Charles Gassenheimer
Ener1 Group has purchased 5,665,723 shares of common stock and 2,426,670 million warrants. The warrants, 910,000 of which are exercisable into Ener1, Inc. common stock at a strike price of $3.53, and 1,516,670 at a strike price of $4.46, have a five-year maturity.