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EnerDel parent nets $20M from Russian investor

September 23, 2010

EnerDel parent company Ener1 said Thursday that it will raise nearly $20 million from a principal shareholder through the sale of common stock and warrants.

New York-based Ener1 didn't disclose how it will use the funds. The public company has closed several rounds of financing as it prepares to begin producing more lithium-ion battery packs at a plant in Hancock County's Mount Comfort area, off Interstate 70. The EnerDel battery packs are being supplied to the Norwegian electric car maker Think.

Earlier this month, the firm said it had raised $65 million to finance operations and ramp up manufacturing in the Indianapolis area.

The additional $20 million is coming from Ener1 Group Inc., a company led by Russian industrialist Boris Zingarevich. Ener1 and Ener1 Group entered the stock-purchase agreement on Sept. 1, and the financing is expected to close next week, Ener1 said. Net proceeds to Ener1 after fees will be $19.7 million.

Ener1 Group agreed in June to make a another $65 million investment in the company. Before that deal, Zingarevich controlled about 3.8 million shares in the firm, formed in 1994 via the merger of the lithium-battery operations of Ener1 and Michigan-based Delphi Corp.

On Tuesday, Ener1 announced a restructuring that realigns the firm into three separate business segments—transportation, utility grid and small-format products—all of which will operate as Ener1. The EnerDel name will be used as a brand for the company's advanced batteries, rather than a corporate entity.

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