Amerigon Announces Adjustment to Exercise Price of Class A Warrants
31 March 2000
Amerigon Announces Adjustment to Exercise Price of Class A Warrants
IRWINDALE, Calif., March 30 Amerigon Incorporated
announced today that the exercise price of its publicly traded
Class A Warrants (OTC Bulletin Board: ARGNW) has been lowered as a result of
the issuance of warrants to Ford Motor Company to purchase shares of
Amerigon Class A Common Stock. The warrants granted to Ford were part of the
agreement announced on March 27 under which Ford agreed to use Amerigon's
proprietary Climate Control Seat(TM) (CCS(TM)) system for a period of five
years. In connection with this announcement, Amerigon President Richard A.
Weisbart also commented "We want to make this as straightforward as possible
for our investors. Rather than continue with the requirement that five
warrants must be exercised in order to acquire one share of Amerigon Class A
Common Stock, the Company has elected, as permitted under the Warrant
Agreement, to implement a plan to reduce by a factor of five the number of
outstanding Class A Warrants."
The Ford transaction effects the Warrants by lowering to $24.149, from
$25.00, the total exercise price that must be paid upon the exercise of five
Class A Warrants for one share of Amerigon Class A Common Stock.
In addition to the exercise price reduction, because of certain
anti-dilution protections in the Warrant Agreement, additional Class A
Warrants will be issued and the total number of shares of Class A Common
issuable upon the exercise of the Class A Warrants has been increased by
49,976 shares to 1,468,776 shares. To issue the additional Warrants, the
Company will distribute an additional 0.0352 Warrants for each Warrant held by
Class A Warrant holders of record as of March 27, 2000.
In order to effect the reduction in the total number of Class A Warrants
and the issuance of the additional Warrants, the Company plans to send a
letter of transmittal to the registered holders of all outstanding publicly
traded Class A Warrants. The letter of transmittal will be used by the
Warrant holders to exchange their current Warrant certificates for new Warrant
certificates reflecting the one-for-five reduction and the issuance of the
additional Warrants. Following the reduction in the total number of Class A
Warrants and the surrender by holders of the existing Class A Warrant
certificates, each of the then publicly traded Class A Warrants outstanding
will represent the same interest in Amerigon as five of the currently
outstanding Class A Warrants.
After the surrender by holders of the existing Class A Warrant
certificates, the Company will have 1,468,776 outstanding Warrants (down from
7,343,880) to issue 1,468,776 shares of Class A Common Stock, and only one
Class A Warrant will be required to purchase one share of Amerigon Class A
Common Stock at an exercise price of $24.149.
Allen & Caron, Inc of Irvine, CA will serve as information agent for the
Class A Warrant Certificate exchange. All questions concerning the Warrant
exchange should be directed to Jill Conner at Allen & Caron at (800) 452-1346.
Amerigon, a technology-driven supplier to the global automotive industry,
develops and supplies proprietary products for automotive OEMs. In addition
to the Climate Control Seat (CCS) technology, the Company's products include
the AmeriGuard(TM) radar sensing system, designed to improve driver's field of
view in vehicle applications such as enhanced parking aids, back-up warning
and side object detection for collision avoidance.