Ener1 Raises $4m in Share Sale to Reinvest in Lithium Batteries for Fuel Cell Systems

January 09, 2007 by Jeff Shepard

Ener1 Inc. announced that it has made a major sale of shares to generate further capital to invest in its fuel cell technology. The group sold shares worth $5.5 million (€2.8 million) in a private transaction, generating some $4 million in proceeds to be re-invested into Ener1's program to develop lithium batteries for use in fuel cells and hybrid electric vehicles. The transaction involved the sale of 22 million unregistered shares in Ener1's common stock to a bulge-bracket investment bank.

Charles Gassenheimer, Ener1's Vice Chairman, also made a $500,000 investment in the transaction, receiving two million unregistered shares, the company said. "The primary purpose of the transaction is to finance Ener1's investments in alternative energy technology, particularly at our EnerDel and EnerFuel subsidiaries," Gassenheimer explained.