SHENZHEN, China, Sept. 4 /Xinhua-PRNewswire-FirstCall/ -- China BAK Battery Inc. (Nasdaq GM: CBAK), one of the largest lithium-ion battery cell manufacturers in the world, as measured by production output, announced today that it has closed a Registered Direct Offering of 4,102,564 shares of its common stock at $3.90 per share, for an aggregate purchase price of $16 million. Pursuant to the Securities Purchase Agreement, the investors also received warrants to purchase an aggregate of 4,102,564 additional shares of the Company's common stock (together with the New Shares, the "Shares") at an exercise price of $3.90 per share. The warrants are exercisable for 60 days beginning on the date of the initial issuance of the warrants.
The Company expects to use the net proceeds of this offering to, among other things, fund expansion of the Company's notebook cell lines, to fund working capital and to reduce debt.
The Company also raised guidance of FY08 revenue to $240M from $210M reflecting strong demand for its products, especially laptop battery cells; and announced FY09 revenue guidance in the range of $370M to $410M.
About China BAK Battery Inc.
China BAK Battery, Inc. is one of the largest manufacturers of
lithium-based battery cells in the world. It produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers and portable consumer electronics, such as digital media devices, portable media players, portable audio players, portable gaming devices and personal digital assistants (or PDAs), and is the largest manufacturer of lithium-ion battery cells for China's cellular phone replacement battery market. China BAK's 1.9 million square feet of facilities are located in Shenzhen, PRC, and have been recently expanded to produce new products. More information about China BAK (NASDAQ: CBAK) is available at http://www.bak.com.cn/ .
Safe Harbor Statement
This press release contains forward-looking statements, which are subject to change. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All "forward-looking statements" relating to the business of China BAK Battery, Inc. and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties which could cause actual results to differ. These factors include but are not limited to: risks related to China BAK's business and risks related to operating in China. Please refer to China BAK's Annual Report on Form 10-K for the fiscal year ended September 30, 2007, as well as China BAK's Quarterly Reports on
Form 10-Q for FY08, for specific details on risk factors. Given these risks and uncertainties, you are cautioned not to place undue reliance on
forward-looking statements. China BAK's actual results could differ materially from those contained in the forward-looking statements. China BAK undertakes no obligation to revise or update its forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any jurisdiction. The shares of common stock may only be offered by means of a prospectus. The Shares (including the Shares issuable upon exercise of the warrants) were to be drawn-down off of a shelf registration statement (the "Registration Statement") declared effective by the Securities and Exchange Commission on July 10, 2008. Copies of the final prospectus supplement and accompanying base prospectus can be obtained from China BAK (BAK Industrial Park, No. 1 BAK Street, Kuichong Town, Longgang District, Shenzhen, 518119, People's Republic of China, fax +86-755-89770527).
