Ultralife Raises Funds from Ultralife Taiwan Shares
Ultralife Batteries Inc. (Newark, NY) has sold an aggregate of 42.5 million shares of Ultralife Taiwan Inc. (UTI) stock to UTI and PGT Energy Corp. (PGT) in exchange for total consideration of $2.4 million and the return of 700,000 shares of Ultralife common stock.
Under the terms of the transaction, Ultralife will receive $2.4 million in a series of five cash payments beginning October 30, 2002, and ending no later than mid-December 2002. In addition, over the next three years, Ultralife will have reserved access to 10 percent of UTI's high-volume capacity for rechargeable lithium battery products and the rights to utilize UTI's large-scale battery technology for the production of large-capacity, lithium-ion batteries for government and military markets in the US and the UK.
As a result of the transaction, Ultralife's ownership interest in UTI will decline from approximately 30 percent to approximately 10.6 percent. In addition, the company expects to record a non-operating gain of at least $2.4 million in its second fiscal quarter and to record an increase in treasury stock to reflect the return of its 700,000 common shares. This will result in reducing the issued and outstanding common shares of Ultralife to 12,652,269.