Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - VALENCE TECHNOLOGY INC | valence_8k-101409.htm |
| EX-5.1 - LEGAL OPINION LETTER - VALENCE TECHNOLOGY INC | ex5-1.htm |
| EX-10.1 - COMMON STOCK PURCHASE AGREEMENT - VALENCE TECHNOLOGY INC | ex10-1.htm |
Exhibit
99.1
|
IR
Contact:
|
PR
Contact:
|
|
A.
Pierre Dubois
|
Kyle
Tarrance
|
|
Pierpont
Investor Relations
|
Allyn
Media
|
|
(512)
527-2921
|
(214)
871-7723
|
|
investor@valence.com
|
ktarrance@allynmedia.com
|
Valence
Technology Receives Equity Commitment
Investment
Fund to Purchase up to 16.9 Million Shares over Next 12 Months
AUSTIN, Texas (Oct. 15, 2009) – Valence Technology,
Inc. (NASDAQ: VLNC), a U.S. based, international developer of lithium
iron magnesium phosphate energy storage solutions, announced today it has
entered into a common stock purchase agreement with Seaside 88, L.P. (“Seaside”), a private
investment limited partnership. Under the terms of the Agreement,
Seaside has committed to purchase up to 16.9 million Valence common shares, in a
series of closings every two weeks in the amount of 650,000 shares each for a
total of up to 26 purchases. Today, Valence and Seaside expect
to close the first sale of 650,000 shares for gross proceeds of
$947,770.
“The
expected proceeds from this financing will be used for working capital and
general corporate purposes, including our ongoing sales and marketing and
research and development programs,” said Robert L. Kanode, Valence Technology
president and CEO. “We welcome Seaside’s investment and appreciate
the continued support from all our shareholders.”
The price
of the shares to be sold at today's initial closing will be $1.45, a 12%
discount to the 10 day volume weighted average trading price (“VWAP”) of the
Company’s common stock ending October 14, 2009. At each scheduled
closing,
the price of the shares of common stock to be issued will be
determined by applying a 12% discount to the 10-day VWAP preceding the
closing. If, with respect to any subsequent closing, the three-day
VWAP immediately preceding the closing is below $1.00 per share, then the
closing will not occur and the aggregate number of shares of common stock that will
be purchased under the Agreement will be reduced by 650,000
shares. If the dollar amount of the investment on any scheduled
closing date is more than double the amount of the investment on the prior
closing date, then Seaside has the option to reduce the number of shares
purchased on that date to an amount no less than double the amount of the
investment in the prior closing date.
Seaside
has also committed in the stock purchase agreement that it has not sold short
any of Valence’s shares nor will it do so in the future while it is a common
stockholder. There are no warrants associated with this
agreement. Valence has the right to discontinue the agreement after
six closings and under certain other conditions either party may terminate the
stock purchases by Seaside.
Valence
is offering the securities in this agreement pursuant to an effective shelf
registration statement. The offering is being made only by means of a
prospectus. Copies of the final prospectus supplement and
accompanying base prospectus relating to the offering can be obtained from going
to the Investor Relations section of the Company website at www.valence.com and
clicking on the SEC filings link or from the U.S. Securities and Exchange
Commission's website at www.sec.gov. This
press release shall not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sales of these securities in any
jurisdiction in which such an offer, solicitation or sale would be unlawful
prior to the registration or qualification under the securities laws of any such
jurisdiction.
About
Valence Technology, Inc.
Valence
Technology is an international leader in the development of lithium iron
magnesium phosphate energy storage solutions. The company has
redefined lithium battery technology and performance by marketing the industry’s
first safe, reliable and rechargeable lithium iron magnesium phosphate
battery. Founded in 1989, Valence today offers a proven technology
and manufacturing infrastructure that delivers ISO-certified products and
processes that are protected by an extensive global patent
portfolio. Headquartered in Austin, Texas, Valence has facilities in
Nevada, China and Northern Ireland. Valence is traded on the NASDAQ Capital
Market under the ticker symbol VLNC. For more information, visit
www.valence.com.
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Safe
Harbor Statement
This
press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including our statements
related to the shares to be sold in the future pursuant to the common stock
purchase agreement with Seaside and the impact thereof on our business.
Actual results may vary substantially from these forward-looking statements as a
result of a variety of factors. Among the important factors that could cause
actual results to differ are: our ability to executed on our business plan and
achieve our intended strategic and operating goals, our uninterrupted history of
quarterly losses, the need to raise additional debt or equity financing, market
acceptance of our products, our customer relations, the level of our expenses,
the effects of competition, and general economic conditions. These and other
risk factors that could affect actual results are discussed in our periodic
reports filed with the Securities and Exchange Commission, including our Report
on Form 10-K for the year ended March 31, 2009, and our Report on Form
10-Q for the quarter ended June 30, 2009, and the reader is directed to these
statements for a further discussion of important factors that could cause actual
results to differ materially from those in the forward-looking
statements.
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