SOURCE: Electro Energy Inc.

July 08, 2008 16:06 ET

Electro Energy Announces Reverse Stock Split to Maintain NASDAQ Listing

DANBURY, CT--(Marketwire - July 8, 2008) - Electro Energy Inc. (NASDAQ: EEEI) (the "Company"), a leading provider of advanced battery technologies and associated systems, announced today that the Company will implement a reverse stock split, in accordance with the previously announced authorization of its Board of Directors, in order to regain compliance with the NASDAQ Marketplace Rules for continued listing. Pursuant to the reverse stock split, every five shares of Electro Energy's common stock will be combined into one share. Previously, the NASDAQ Stock Market had notified the Company that its common stock did not meet the requirements for continued listing under NASDAQ Marketplace Rule 4310(c)(4) because its bid price had closed below $1.00 per share for more than thirty consecutive trading days. "We expect that the reverse stock split will result in our regaining compliance with the NASDAQ Marketplace Rules," said Michael E. Reed, the Company's President and Chief Executive Officer.

Electro Energy's common stock will continue to trade on the NASDAQ Capital Market on a split-adjusted basis when the market opens on July 9, 2008, under the temporary trading symbol "EEEID." The NASDAQ Stock Market has informed the Company that the trading symbol will revert to "EEEI" on August 6, 2008.

The reverse split will reduce the number of the Company's outstanding shares of common stock from approximately 30.7 million to approximately 6.1 million. Proportional adjustments will be made to the Company's outstanding warrants, options and equity compensation plans. Proportional adjustments will also be made to the conversion ratios of the Company's Series A and Series B Convertible Preferred Stock and to the company's outstanding convertible debentures. The number of authorized shares of common stock will be reduced from 250 million to 50 million.

About Electro Energy Inc.

Electro Energy Inc., headquartered in Danbury, Connecticut, was founded in 1992 to develop, manufacture and commercialize high-powered, rechargeable bipolar wafer cell nickel-metal hydride batteries for use in a wide range of applications. Its Colorado Springs operation supplies aerospace-grade high quality nickel cadmium batteries and components for satellites, aircraft and other specialty applications. EEEI is developing high power lithium rechargeable batteries utilizing the Company's proprietary bipolar wafer cell design. Its Gainesville, Florida facility is the largest lithium ion battery manufacturing plant in the US with annual capacity of over 30 million 18650 cylindrical cells, the standard cell used in the electronics industry. For further information, please visit www.electroenergyinc.com.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, the following: general economic and business conditions; competition; unexpected changes in technologies and technological advances; ability to commercialize and manufacture products; results of experimental studies; research and development activities; changes in, or failure to comply with, governmental regulations; and the ability to obtain adequate financing in the future. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of Electro Energy Inc.'s Securities and Exchange Commission filings available at http://www.sec.gov.

Contact Information

  • Contact:
    Timothy E. Coyne
    (203) 797-2699