LTC Announces Intention to Merge with GAIA
Lithium Technology Corp. (LTC, Plymouth Meeting, PA) announced that it has signed a letter of intent to merge with GAIA (Nordhausen, Germany). The merger is part of a strategic restructuring that would include a new equity financing of approximately $6,000,000 and termination of the existing merger agreement with Ilion Technology Corp. (Auckland, New Zealand), which is also a party to the letter of intent.
Under the terms of the letter of intent, GAIA would become a wholly owned subsidiary of LTC. The letter of intent specifies that all parties will use their best efforts to close the merger and financing transaction by December 31, 2001.
The existing merger agreement with Ilion has a termination date of February 28, 2002, in the event that Ilion cannot complete an IPO by that date due to market conditions or other factors. According to the provisions of the letter of intent, all rights and obligations of Ilion with respect to LTC under the merger agreement, and bridge financing agreement in effect since October 1999, will terminate upon the closing of the LTC-GAIA merger.
LTC Chairman and CEO David Cade, said, "We have valued our two-year partnership with Ilion and look forward to a continuing close relationship with them. With the GAIA merger, LTC moves up to a new level of capabilities in being able to meet volume production requirements for selected automotive and stationary power applications. GAIA's strategic positioning on the European continent will also give us access to large untapped and emerging markets for our rechargeable battery products."