Unique Mobility Warrant Holders Acquire $3.5 Million Of Common Stock
20 March 2000
Unique Mobility Warrant Holders Acquire $3.5 Million Of Common Stock
GOLDEN, Colo., March 20 Unique Mobility, Inc. (Amex: UQM)
announced today that the holders of warrants to acquire shares of the
Company's common stock at an exercise price of $8 per share have acquired
436,212 shares of common stock resulting in cash proceeds to the Company of
$3,489,696. The warrants were issued as part of a unit offering in 1998 to
finance the Company's acquisition of Franklin Manufacturing Company and
expired at various dates in March, unless extended. Warrants to acquire
926,587 shares of common stock, including warrants issued to the placement
agents were issued in the offering.
In the fall of 1999, the Company offered the warrant holders an
opportunity to extend the term of the warrants for an additional eighteen
months at any time through their original expiration date. Extensions were
granted at a cost equal to the fair value of the option extension on the date
the election to extend was made. Accordingly, warrant holders having the
right to acquire 299,375 shares of common stock elected to extend their
warrants for eighteen months resulting in additional cash proceeds to the
Company of $78,151. Warrants to purchase 12,000 shares of common stock expire
in April, 2000 and warrants to purchase 179,000 shares expired unexercised.
Donald A. French, Unique's Treasurer and Chief Financial Officer said,
"These warrant holders were instrumental in providing the financing for our
acquisition of Franklin and have been some of our largest institutional
holders. We appreciate their continued support of our Company. Cash proceeds
from the stock purchases will be applied to general corporate purposes,
including debt reduction and acquisitions."
Unique Mobility, Inc. is a leading developer and manufacturer of power
dense, high efficiency motors, gear assemblies and electronic assemblies for
the automotive, aerospace, telecommunications, medical and industrial markets.
A major emphasis of the Company is developing products for the alternative
energy technologies sector including the electric, hybrid-electric and fuel
cell electric vehicle and distributed power markets. The Company's
headquarters and engineering and product development center are located in
Golden, Colorado. Manufacturing facilities are located in Frederick, Colorado
(electric motors and gear assemblies) and St. Charles Missouri (electronic
assemblies and wire harnesses). For more information on the Company, please
visit its worldwide website at http://www.uqm.com.
This press release contains forward-looking statements that involve risks
and uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to the Risk Factors section of the
Registration Statement on Form S-3 (File No. 333-78525) filed by the Company
with the SEC, which identifies important risk factors that could cause actual
results to differ from those contained in the forward-looking statements,
including the Company's ability to become profitable, its ability to obtain
additional financing, the Company's reliance on major customers and suppliers
and the possibility that product liability insurance may become unavailable.
These forward-looking statements represent the Company's judgment as of the
date of the press release. The Company disclaims, however, any intent or
obligation to update these forward-looking statements.