SHENZHEN, China, Oct. 22 /PRNewswire-Asia-FirstCall/ -- China BAK Battery,
Inc. ("China BAK" or "BAK") (Nasdaq: CBAK) today announced that it has entered
into definitive agreements with certain accredited investors to sell in a
registered direct offering 5,790,000 units, each unit consisting of one share
of common stock and a warrant to purchase 0.25 of a share of common stock, at
a price of $3.55 per unit under its Form S-3 Registration Statement resulting
in gross proceeds to the Company of approximately $20.6 million, before
deducting placement agent fees and expenses of the offering. The warrants may
be exercised at $3.90 per share. The warrants, if not exercised, will expire
24 months from the closing date.
The closing is subject to certain customary closing conditions and is
expected to occur on October 27, 2009.
Proceeds from the offering will be used primarily for the repayment of
short term debt, capital expenditures and general working capital.
Cowen and Company, LLC, a subsidiary of Cowen Group, Inc. (NASDAQ: COWN),
acted as the exclusive placement agent for the transaction.
About China BAK Battery, Inc.
China BAK Battery, Inc. is one of the largest manufacturers of
lithium-based battery cells in the world, as measured by production output. 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 PDAs. China BAK Battery,
Inc.'s 3.0-million-square-foot facilities are located in Shenzhen and Tianjin,
PRC, and have been recently expanded to produce new products.
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 our business and risks related to operating in China. Please
refer to our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q
for specific details on our risk factors. Given these risks and uncertainties,
you are cautioned not to place undue reliance on forward-looking statements.
The Company's actual results could differ materially from those contained in
the forward-looking statements. The company 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 securities may be offered only by means of a
prospectus. Copies of the final prospectus supplement and accompanying
prospectus relating to this offering may be obtained from Cowen and Company,
LLC c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY
11717, Attn: Prospectus Department (631) 254-7106, or 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).
SOURCE China BAK Battery, Inc.
