NEW CASTLE, Pa., Feb. 7, 2012 /PRNewswire/ -- Axion Power International, Inc. (OTC Bulletin Board: AXPW), the developer of advanced lead carbon PbC® batteries and energy storage systems, announced that as of February 3, 2012 it has completed a registered direct common stock offering providing gross proceeds of approximately $9.4 million. The shares sold, par value $0.0001, were priced at $0.35, which was the volume-weighted average price of the shares over a 40-day trading period prior to the commencement of the offering. The shares were sold pursuant to a shelf registration statement declared effective July 14, 2011. Net proceeds of approximately $8.6 million after the expenses of the offering and placement fees, will be used for working capital, capital expenditures and general corporate purposes. Chairman & CEO Thomas Granville commented, "We are glad to put this financing behind us. Raising funds in the current capital market environment is very difficult, and even though we have a number of continuing options and expressed interests from a variety of capital providers, almost all seem to contain terms and conditions that run contrary to the Company's best long-term interest. We were happy to find a straight 'equity - discount to market opportunity' that was provided by a group primarily made up of institutions and individuals who had participated in our previous fundings. We appreciate their continued faith in us. As we move forward with this new funding, we will focus on the markets where our PbC® product provides the most value, namely railroads, hybrid-vehicles, PowerCube™ opportunities on both sides of the meter, oil well applications and residential power quality and energy storage." Co-placement agents for the offering were Philadelphia Brokerage Corporation and Emerging Growth Equities Ltd. The prospectus supplement and the base prospectus can be found at http://1.usa.gov/zs3HVo. 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.