Valence Technology, Inc. - FORM 8-K
Extract:
Item 1.01 Entry into a Material Definitive Agreement.
On February 6, 2008, Valence Technology, Inc. and The Tanfield Group PLC (LN: TAN) entered into a supply agreement whereby the Company agreed to manufacture and supply Lithium Phosphate energy storage systems to power zero emission, all-electric commercial delivery vehicles. The Company’s battery systems will be installed in vans and trucks produced by Tanfield’s UK-based trading division, Smith Electric Vehicles.
Simultaneously with the filing of this Current Report on Form 8-K, the Company filed its Application Pursuant to Rule 24b-2 for Order Granting Confidential Treatment of Portions of Exhibit 10.1 filed herewith. As such, certain portions of the Tanfield supply contract have been redacted from the copy filed herewith as Exhibit 10.1, pending the SEC’s decision with respect to the Company’s application and request for confidential treatment.
Item 3.02 Unregistered Sale of Equity Securities.
On February 8, 2008, Valence Technology, Inc. sold $1.0 million of its common stock to Berg & Berg Enterprises, LLC, an affiliate of our chairman Carl E. Berg. The proceeds will be used to fund corporate operating needs and working capital. Under the terms of the agreement, Valence issued 492,611 shares of its common stock in a private placement transaction exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(2) thereof. Berg & Berg Enterprises, LLC purchased these shares at $2.03 per share, the closing bid price of the Company’s common stock as of February 7, 2008. Under Rule 144 of the Securities Act, these shares are restricted from being traded by Berg & Berg Enterprises, LLC for a period of up to one year from the date of issuance, unless registered, and thereafter may be traded only in compliance with the volume and manner of sale restrictions imposed by this rule and other applicable restrictions. A copy of the letter agreement evidencing this stock sale is attached to this Form 8-K as Exhibit 10.2.
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