Bolder Technologies Announces A Company Restructuring
12 January 2001
Bolder Technologies Announces A Company Restructuring
GOLDEN, Colo., Jan. 12 Bolder Technologies Corporation
announced today immediate cost reduction measures resulting in
the elimination of 89 full- and part-time positions from a prior total of 126.
The cost reduction initiatives were prompted by the Company's review of
its sales through December 31, 2000, its sales forecasts for 2001, and the
current retail climate generally, all of which caused the Company recently to
lower its projected revenue forecast. In addition, fluctuations and
uncertainty in the capital markets to this point have impacted the Company's
ability to raise the additional financing necessary to fund its continued
operations at current levels. The Company will record a charge to its
operations in the first quarter of 2001 to reflect the restructuring.
"Given the current environment, these steps are necessary to bring the
Company's overhead and operating expense in line with projected revenue and
conserve resources while the Company considers its strategic options for the
future," said Roger F. Warren, Chairman, President and CEO.
"Despite this cutback, we are maintaining a core of technical, sales and
administrative staff. We plan to continue to develop new TMF(R) cells for use
in future Advanced Engine Starting applications including the upcoming auto
industry conversion from 12V to 36V batteries and new Hybrid Electric Vehicle
systems. We will also continue to explore opportunities for raising
additional capital while also pursuing other strategic alternatives available,
including the engagement of a significant partner who can provide both funding
and product application expertise. If additional capital is not forthcoming,
we would have to consider other options including a sale of the Company or a
further reduction of the Company's operations," said Warren.
In a separate press release, Bolder is announcing an early stage
relationship with GP Batteries, a Singapore Stock Exchange listed company that
is a world leader in the manufacture of spiral wound rechargeable batteries.
If fully implemented, GP Batteries would assume the overall responsibility for
the manufacture of TMF(R) cells, which would generate significant additional
cost savings for Bolder and would enable Bolder to focus on product
development and marketing/sales in North America and Europe. Bolder's ability
to realize significant TMF(R) cell manufacturing cost savings through
outsourcing to GP Batteries is dependent on the Company's ability to raise new
capital to fund operations over the next 12-15 months prior to an eventual
transfer of manufacturing operations to GP Batteries. Additionally, a
decision to transfer manufacturing operations to GP Batteries may result in
substantial charges to revalue Bolder's manufacturing related assets as a
result of this new operating model.
Bolder Technologies Corporation, headquartered in Golden, Colorado,
manufactures and markets advanced, high-power spiral wound rechargeable
batteries based on its patented Thin Metal Film ("TMF(R)") technology. The
Company is developing and commercializing consumer and OEM battery products
with the TMF(R) technology, including the SecureStart(TM) Portable Jump
Starter (which the Company began shipping to retailers in September 1999),
that use proven lead-acid electrochemistry in a proprietary configuration with
a higher power density than any commercially available rechargeable battery.
The TMF(R) technology offers numerous advantages over existing batteries for
current and future applications, including near-term opportunities in the
marine and auto after markets for 12V primary starting batteries. Bolder's
website is http://www.boldertech.com.
Bolder's TMF(R) technology also has possible future applications in the
pending auto industry conversion from 12V to 36V and Hybrid Electric Vehicle
systems, both directly through vendor sales and indirectly through a license
agreement with Johnson Controls, Inc. (JCI).
This announcement contains forward-looking statements that involve risks
and uncertainties, including statements that are preceded by, followed by or
include the words "believes," "plans," "intends," "expects," "anticipates,"
"will," "should" or similar expressions. For such statements, Bolder claims
the protection of the safe harbor for forward-looking statements contained in
the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from the results predicted, and reported results should not
be considered as an indication of future performance. Factors that could
cause actual results to differ from those contained in the forward-looking
statements include potential difficulties in raising additional capital on
terms acceptable to the Company and in achieving market acceptance for the
Company's present and future products, and whether and how Bolder's proposed
strategic alliance with GP Batteries is implemented, as well as those factors
set forth in Bolder's registration statement on Form S-3 filed on August 16,
2000, the Annual Report on Form 10-K for the year ended December 31, 1999 and
the Quarterly Report on Form 10-Q for the quarter ended September 30, 2000,
each of which has been filed with the SEC. Bolder undertakes no
responsibility to publicly update or revise any of the forward-looking
statements that may be in this release.
For more information, contact: Paul C. Kelly, CFO of Bolder Technologies
Corporation, 303-215-7290; or Philip L.Thomas of The P.L. Thomas Group,
312-704-1800.