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Ener1 (HEV) Secures $30 Million Credit Line, Says Shipment to Th!nk On Schedule
Ener1 (HEV), the lithium battery maker who is a supplier for Th!nk electric vehicles of Norway has indicated it’s secured a $30 million line of credit from its principal investor, Ener1 Group that will keep the company fully funded through 2009. Terms of the financing are still being finalized. The company has also confirmed that it remains on schedule to deliver its lithium ion batteries to Th!nk electric which will begin selling its vehicles commercially at the end of Q1 09 but they will extend the holiday shutdown period while additional funding sources are sought and will resume production at the end of January.
“We are secure in our funding through the coming year, which gives us the ability to focus solely on execution on the business side, and deliver on our consistent promise to create long-term shareholder value,” said Ener1 CEO and Chairman Charles Gassenheimer. “The environment for automotive suppliers and manufacturers has reached a nadir. However, demand to supply advanced battery systems for the dozens of hybrid and electric vehicle programs already committed to by the world’s automakers will remain healthy and robust.”
This news out of HEV doesn’t smell right to me. They secure funding for operations through 09 but are shutting down for nearly 2 months just ahead of a large shipment to Th!nk while they seek additional funding? I would stay out of this one for awhile, not only based on this news but due to the fact that the technicals have deteriorated. The stock now trades below the 50 day moving average and is off about 30% over the past week after briefly touching all time highs.
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