BOSTON (Thomson Financial) - Shares of Advanced Battery Technologies Inc. plunged in premarket trades Friday after the China-based battery maker said it will privately-sell 2.82 million shares of its common stock at $4.25 per share, resulting in gross proceeds of $12 million.
The stock was down 21.6% at $5.53 on volume of 76,030 shares. The stock closed Thursday at $5.51.
Advanced Battery said investors in the private placement will also receive five-year warrants to purchase up to 1.27 million additional shares of common stock at an exercise price of $5.51 per share.
The company said it plans to use proceeds from the financing for funding expansion of assembly lines and other general corporate purposes, including working capital and possible acquisitions. Casey Logan cl/vj COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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