Company sells 8% senior convertible notes with 50% warrant coverage
By Devika Patel
Knoxville, Tenn., May 8 - Axion Power International, Inc. said it completed a $10 million private placement of 8% convertible notes. The company sold $9 million of senior convertible notes and $1 million of subordinated unsecured convertible notes via agent Maxim Group LLC.
The senior notes are convertible into common stock at 105% of market price.
The senior note investors also received 50% warrant coverage. Each of the warrants is exercisable at $0.302 for five years. The strike price is a 16.15% premium to the May 7 closing price of $0.26.
New Castle, Pa.-based Axion specializes in developing energy storage devices.
| Issuer: | Axion Power International, Inc.
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| Issue: | Senior convertible notes, subordinated unsecured convertible notes
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| Amount: | $10 million
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| Coupon: | 8%
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| Agent: | Maxim Group LLC
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| Settlement date: | May 8
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| Stock symbol: | OTCBB: AXPW
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| Stock price: | $0.26 at close May 7
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| Market capitalization: | $29.8 million
|
|
|
| Senior notes
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| Amount: | $9 million
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| Conversion price: | 105% of market price
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| Warrants: | 50% coverage
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.302
|
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| Subordinated notes
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| Amount: | $1 million
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