Ener1 announces securities purchase agreement

Energy technology company Ener1 has announced that it has executed a securities purchase agreement with its principal shareholder for the purchase of common stock and warrants for $20m (£13m).

Ener1 will use these additional funds, along with a grant from the US Department of Energy under the American Recovery and Reinvestment Act, to fund an immediate increase in working capital and to help achieve its intended manufacturing plans to install 260MW hours, or capacity for 11,000 electric vehicle battery packs, at its three Indianapolis facilities.

The company has purchased 5.7 million shares of common stock and 2.4 million warrants.

The warrants, 910,000 of which are exercisable into Ener1 common stock at a strike price of $3.53 and 1.5 million at a strike price of $4.46, have a five-year maturity.