NEW CASTLE, Pa., Feb. 1 , 2012 /PRNewswire/ -- Axion Power International, Inc. (OTC Bulletin Board: AXPW) ("Axion" or "the Company"), the developer of advanced leadcarbon PbC® batteries and energy storage systems, today announced that it has entered into definitive agreements to sell an aggregate of not more than 28,571,429 shares of common stock, par value $0.0001 per share (the "Shares"), at a price per share of $0.35 for gross proceeds up to $10 million, before deducting placement agents' fees and estimated offering expenses. The share price for this transaction was pre-determined by calculating a 10% discount to market using the Company's volume weighted average price for the trailing 40 day period (VWAP).
The Shares are being offered directly by Axion pursuant to an effective shelf registration statement previously filed with, and declared effective by, the Securities and Exchange Commission on July 14, 2011. The Company anticipates that the net proceeds from the offering will be used for working capital, capital expenditures and general corporate purposes. The closing of this offering is expected to occur on or about February 3, 2012, subject to the satisfaction of customary closing conditions.
Philadelphia Brokerage Corporation and Emerging Growth Equities, Ltd served as co-placement agents for the offering. When available, copies of the prospectus supplement and the accompanying base prospectus relating to the offering may be obtained from the Securities and Exchange Commission website at http://www.sec.gov.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 prior to registration under the securities laws of any state or jurisdiction.