NEW CASTLE, Pa., June 15, 2015 /PRNewswire/ -- Axion
Power International, Inc. (Nasdaq: AXPW) ( "AXION"), a developer of
advanced lead-carbon PbC® batteries, energy storage systems and
frequency regulation systems, today announced that on Saturday it
signed a binding Letter of Intent (LOI) for a technology
development and licensing program with LCB International, Inc.
("LCB"). LCB is a privately owned entity incorporated in the
British Virgin Islands with its
principal business office in Shanghai,
China.
The LOI defines and confirms the intent of the parties to
execute the final agreements within 60 days of the signing the
LOI. These agreements will grant LCB the right to manufacture
and sell PbC batteries and other Axion products on an exclusive
basis in the People's Republic of
China, Taiwan, Macao and Hong
Kong ("Territory"). Axion will receive a
non-refundable payment of $250,000
immediately, and further staged payments after final agreements are
signed. Under the terms of the LOI, Axion would receive an
aggregate of up to $10 million over a
period of two years in a combination of technology license fees,
the sale of convertible preferred stock and senior convertible
notes. Axion would also be paid royalties for the longer of
the last to expire patent licensed or up to 15 years.
Chairman Donald Farley commented,
"We have completed the first step toward an important agreement for
Axion Power, for LCB, and for the greater China marketplace. We are
very pleased with the LOI and to be working with LCB to achieve
production of our advanced carbon electrodes on a commercial scale
and the planned development of specialized PbC-based products for
China. LCB will form a China Joint
Venture in order to develop the Territory for our
fast-charging, long-lasting lead-carbon batteries and associated
peripherals and electronics; Axion will have an equity
participation in the Venture. The significant investment of
LCB into Axion represents a strategic partnership that should
assure our shareholders that Axion's proprietary technologies
remain valuable and viable. It also represents the first
success in Axion's current strategy to engage in strategic
partnerships that can accelerate the commercialization of PbC
products and systems around the globe."
Due to the significance of the terms and conditions in the LOI,
which are to be incorporated into the final agreements; approvals
will be needed from Axion Power shareholders for the potential
issuance, upon future fixed-price conversion of the preferred stock
and convertible notes, of shares amounting to more than 20 percent
of the Company's issued and outstanding shares. Such
approvals will be sought, while Axion and LCB are negotiating the
final detailed agreements required by the LOI.
Dr. Wangjie Gesang, Managing Director of LCB, commented, "We are
very pleased to be working with Axion in developing this strategic
partnership, and we look forward to taking the PbC technology to
Greater China expeditiously.
We will work diligently with Axion to execute the final agreements
based on the terms in the LOI. We have conducted extensive
market research in the Territory on battery energy storage
solutions for motive and stationary applications and have concluded
that Axion's patented PbC technology has significant market
potential in Greater China.
Further details of the LOI will be filed with the SEC no later
than four business days from the date of the LOI, and will be
accessible at www.sec.gov, with a link from our website at
www.axionpower.com.
About Axion Power International, Inc.
Axion Power is an industry leader in lead-carbon energy
storage. Its PbC battery technology utilizing proprietary
activated carbon electrodes is the only advanced battery that can
be assembled on existing lead-acid production lines throughout the
world. Axion Power's primary goal is to become the leading supplier
of carbon electrode assemblies for lead-acid battery companies
around the world.
For more information, visit www.axionpower.com.
Forward-looking Statements
Certain statements in this Press Release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are based on our
current expectations and beliefs and are subject to a number of
risk factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. Such risks and uncertainties include the risk for the
Company to complete its development work, as well as the risks
inherent in commercializing a new product (including technology
risks, market risks, financial risks and implementation risks, and
other risks and uncertainties affecting the Company), as well as
other risks that have been included in filings with the Securities
and Exchange Commission, all of which are available
at www.sec.gov. We disclaim any intention or
obligation to revise any forward-looking statements, including,
without limitation, financial estimates, whether as a result of new
information, future events, or otherwise.
Contacts
Axion Power International, Inc.
Charles Trego, CFO
info@axionpower.com
Allen & Caron Inc
Rudy
Barrio (Investors)
r.barrio@allencaron.com
(212) 691-8087
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SOURCE Axion Power International, Inc.