FORT LAUDERDALE, Fla., Jan. 8, 2007 (PRIME NEWSWIRE) -- Ener1 Group, Inc. completed a $5.5 million private placement transaction to provide further investment capital for its alternative energy investment portfolio. Approximately $4 million of the proceeds was invested in Ener1, Inc. (OTCBB:ENEI), which is developing leading technologies in advanced lithium batteries for hybrid electric vehicles (HEVs) and fuel cells.
Under the structure of the private placement, Ener1 Group sold 22 million unregistered shares of previously issued and outstanding common stock of Ener1, Inc. As part of the transaction, Ener1, Inc. delivered to the buyer, a bulge-bracket investment bank, 20 million unregistered shares and 5 million newly issued warrants to purchase Ener1, Inc. common stock with an exercise price of $0.30 and a term of five years. Charles Gassenheimer, Vice Chairman of Ener1, Inc., also invested $500,000 in the transaction, and received 2 million unregistered shares and 500,000 newly issued warrants on the same terms.
Concurrent with the closing of the private placement, Ener1 Group invested $4 million of the proceeds in Ener1, Inc. through the exercise of 16 million warrants at an exercise price of $0.25. Ener1, Inc. modified the conversion price of previously issued warrants owned by Ener1 Group to accommodate the transaction on a less dilutive basis.
"The primary purpose of the transaction is to finance Ener1, Inc.'s investments in alternative energy technology, particularly at our EnerDel and EnerFuel subsidiaries," stated Vice Chairman Charles Gassenheimer.
Ener1, Inc. has agreed to file a registration statement for the securities sold in the private placement within 45 days.
About Ener1, Inc.
Ener1, Inc. (OTCBB:ENEI) is an alternative energy technology company. The company's interests include: 80.5% of EnerDel (http://www.enerdel.com), a lithium battery company in which Delphi Corp. owns 19.5%; 41% of Enerstruct, a Japanese lithium battery technology company in which Ener1's strategic investor ITOCHU owns 51%; wholly owned subsidiary EnerFuel, a fuel cell products and testing services company (http://www.enerfuel.com), and wholly owned subsidiary NanoEner, which develops nanotechnology-based materials and manufacturing processes for batteries and other applications (http://www.nanoener.com). For more information, visit http://www.ener1.com or call 954-556-4020.
About Ener1 Group
Ener1 Group is a privately held global investment firm with offices in Ft. Lauderdale, Florida and New York City. The firm's assets include ownership in portfolio companies in a variety of technology and technology-driven industries. Ener1 Group's operations also include asset management and merchant banking divisions. For more information about Ener1 Group, Inc., visit www.ener1group.com, or call 954-556-4020.
Safe Harbor Statement (Ener1, Inc.)
This release contains forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995 conveying management's expectations as to the future based on plans, estimates and projections at the time the statements are made. The forward-looking statements contained in this press release involve risks and uncertainties, including, but not necessarily limited to: Ener1's ability to succeed as a supplier of batteries to the hybrid electric vehicle and other markets; Ener1's plans to reduce costs and gain a competitive advantage by consolidating manufacturing operations and implementing automated production processes; charges Ener1 will incur in connection with consolidating manufacturing operations; EnerFuel's ability to develop and sell products and services in its planned markets; the degree of competition in the markets for lithium battery, fuel cell and nanotechnology-based products and services, Ener1's history of operating losses, the lack of operating history for the development stage Ener1 businesses, the need for additional capital, the dependency upon key personnel and other risks detailed in Ener1's filings from time to time with the Securities and Exchange Commission. These risks and uncertainties could cause actual results or performance to differ materially from any future results or performance expressed or implied in the forward-looking statements included in this release. Ener1 undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Ener1, Inc. Jerry Herlihy (954) 556-4020