The Quercus Trust completes $18 million equity investment

Tag : Power Batteries

NEW CASTLE, Pa., July 1, 2008 /PRNewswire-FirstCall via COMTEX/----Axion Power International, Inc. (OTC: AXPW) announced that ithas closed the third and final tranche of its previously announced$18 million financing agreement with The Quercus Trust of NewportBeach, California. Yesterday's final closing was a $10 millionequity investment and, along with two previous investments of $4million each announced in January and April, completed theagreement between Axion and Quercus first announced in January.Merriman Curhan Ford and Co. acted as sole placement agent for thetransaction.

In yesterday's final closing, Quercus bought 4,761,905 additionalunits for $10 million. Each closing unit will consist of one shareof Common Stock and a 5-year warrant to purchase one share ofCommon Stock at an exercise price of $2.60 per share.

Tom Granville, Axion CEO said, "Quercus' continued commitment toour technology and our capabilities is a testament to the strengthof our products and the potential global growth of the commercialbattery market. It also shows confidence in the management teamthat we have put in place and recently strengthened by establishinglong term contracts, for the express purpose of maintainingcontinuity and focus. We are constantly looking to add new superiortalent to our team. The Quercus funds will be used to further thedevelopment and testing of our exciting new PbC(TM) technology. OurPbC batteries represent a significant advance in the new class ofemerging environmentally conscious solutions for global energyissues."