Lithium Technology Corporation Raised $3 Million Priced at 120% Premium to Market
Lithium Technology Corporation ("LTC") (OTC: LTHU), a global provider of large lithium-ion rechargeable power solutions, announced today that on December 8, 2006, the Company closed on the sale of its securities in a private placement. The Company sold 20,060 shares of Series C Preferred Stock for an aggregate of $3,009,000. Each share of Series C Preferred Stock is convertible into 2,500 shares of company common stock. At a purchase price of $150 per share of Series C Preferred Stock, the effective purchase price for each underlying common share of company common stock is $0.06 per share. This effective stock price represents a premium of 120% to the market price on the day of closing. The Company did not pay any commission to broker-dealers in connection with the sale of the Series C Preferred Stock.
As previously reported in the Company's Form 8-K dated November 28, 2006, each share of the company's Series C Preferred Stock will automatically be converted into 2,500 shares of company common stock 90 days following the authorization and reservation of a sufficient number of shares of company common stock to provide for the conversion of all outstanding shares of Series C Preferred Stock into shares of company common stock.
Issuance of the securities was exempt from registration pursuant to Rule 506 of Regulation D promulgated under Section 4(2) of the Securities Act. The shares were sold to accredited investors in a private placement without the use of any form of general solicitation or advertising. The underlying securities are "restricted securities" subject to applicable limitations on resale.
"We are extremely pleased with this recent financing because it demonstrates the confidence that professional investors have in LTC and the markets in which we operate," commented Amir Elbaz, executive vice president and chief financial officer of LTC. "We believe that our recent product and partnership announcements have proven to stakeholders that our company is progressing on all fronts, in the production as well as in the commercialization of cells and batteries to the transportation, military and renewable/stationary markets." Additionally, Mr. Elbaz commented, "as reported in the Company's Form 8-K dated December 8, 2006, a debenture holder converted approximately $2.4 million of debt into equity of the Company."
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