Ener1 Inc. (Fort Lauderdale, FL), a developer of lithium batteries and fuel cells, announced the completion of a private placement of $20 million in principal of its 5-percent senior secured convertible debentures. The debentures are convertible into common stock of Ener1 at $1.25 per share. Ener1 also has the right to automatically convert the debentures into common stock upon achieving certain milestones.
As part of the transaction, Ener1 issued 10-year warrants to purchase a total of 16 million shares of Ener1 common stock at an initial exercise price of $2.51 per share. The debentures will pay interest quarterly at a 5 percent annual rate until converted or repaid. The debentures mature in five years.
