This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ener1 Announces Common Stock Purchase Agreement For Up To $50 Million

NEW YORK, Aug. 4, 2011 /PRNewswire/ -- Ener1, Inc. (NASDAQ: HEV), a leader in lithium-ion energy storage solutions, today announced that Aspire Capital Fund, LLC, an Illinois limited liability company, has purchased 2,325,581 shares of Ener1 common stock for $2,000,000. The per share purchase price was $0.86, which was the closing price on August 2, 2011. The investment represents the first purchase under a common stock purchase agreement in which Aspire Capital has agreed to buy, at Ener1's option, up to a total of $50,000,000 of Ener1 common stock over the next 24 months.  The purchase agreement provides Ener1 with two mechanisms under which it can elect to sell shares of common stock to Aspire Capital on any business day: (1) Ener1 can sell up to 250,000 shares per day at a known price based on the market price on the purchase date, and (2) Ener1 can sell up to 30% of the number of shares traded on the purchase date at a price equal to 95% of the volume weighted average price for such purchase date.

(Logo: http://photos.prnewswire.com/prnh/20080312/CLW018LOGO )

"We believe the facility with Aspire Capital, together with a recent $15 million line of credit from our largest shareholder and approximately $27 million in projected cash flow from product delivered to Federal Grid Corporation, provides Ener1 with the financial resources we need to continue to execute our business plan," stated Ener1 Chairman and CEO Charles Gassenheimer.  "We feel that the terms provided by Aspire are very favorable and flexible, and we appreciate the confidence they have shown in Ener1.  While our goal remains to fund our business by generating cash flow internally, our board of directors believes this is a prudent step to ensure that our business plan is fully funded under any scenario.  We remain very optimistic that, with the continued development of our transportation, small format and utility grid energy product lines, we are on the right path to building a world-leading energy storage solutions company."

Under the purchase agreement, Ener1 will control the timing and amount of any sales of common stock, and is not obligated to sell unless it elects to do so.  Aspire is required to make purchases as Ener1 directs in accordance with the agreement, which may be terminated by Ener1 at any time.  The purchase agreement does not restrict Ener1 from entering into other financing arrangements.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs