AXION POWER INTERNATIONAL, INC. (OTCMKTS:AXPW) Files An 8-K Other EventsITEM 8.01 Other Information
At the request of the Board of Directors of Axion Power International, Inc., the following statement is being issued.
Over the last 15 months (January 2016 – March 2017), Axion Power International, Inc., without success, initiated 12 separate serious, significant, and diligent efforts to commercialize Axion’s PbCR battery technology. These efforts were governed by NDAs and included aggressive actions to sell, partner, merge or joint venture with other technology, energy storage and battery companies. Except for the letter of intent (October 31, 2016) with a potential Chinese partner, all other efforts have failed. Further, due to the competitive marketplace which included decreasing prices of alternative technologies such as lithium ion and the long term nature of these prospective projects, such as the Sharon PA frequency regulation project, combined with Axion’s inability to raise sufficient cash in a timely manner to withstand such longer timeframes, Axion has been unable to realize its desired business goals.
In addition, Axion explored, unsuccessfully, several opportunities to raise significant equity capital.
Due to internal travel clearance issues in the People’s Republic of China and what has been described to us as very involved procedures in obtaining clearance of financial payments to foreign businesses, our potential Chinese partner’s pledged financial commitments and travel plans to visit our New Castle, PA facility have changed several times, resulting in significant delays.
First, these significant and financially impactful delays were communicated in an 8-K issued December 16, 2016 noting the non-receipt of the pledged down payment by the potential partner of $250,000, previously scheduled for December 1, 2016 and committed in the $5 million Tri-Party LOI signed October 31, 2016 (announced in a November 1, 2016 press release). In addition, the Company was advised that the Chairman of our potential partner would make a visit to Axion’s principal offices on January 9, 2017, and the pledged $250,000 down payment would be received thereafter.
Subsequently, in an 8-K issued December 22, 2016 the Company advised that the potential Chinese visit would be rescheduled for early to mid-February 2017. This rescheduling caused further delay both to the pledged $250,000 down payment and the anticipated $875,000 quarterly payments, as part of a Final $5 million Tri-Party Agreement. The Chinese delegation (Chairman plus six senior scientists and marketing leaders) visited Axion’s Headquarters on February 26, 2017 for a detailed technology review.
These changes, missed commitments and delays have caused the Company significant financial hardship. As a result, Axion is now forced to explore alternatives and may retain the services of a professional business advisory firm to assist in this effort.
Without an immediate infusion of capital, Axion will not be able to continue as a going concern and will not be able to continue its public company reporting requirements. Nonetheless, the Company will endeavor to issue an unaudited financial report by the end of April 2017.
About AXION POWER INTERNATIONAL, INC. (OTCMKTS:AXPW)
Axion Power International, Inc. is an energy solutions company. The Company has developed carbon/lead batteries, and integrates its batteries into energy storage systems, renewable energy systems, off-grid applications, automotive and other applications. The Company sells batteries, energy storage systems and engineering services as part of its product offerings, and can assist battery end users to adapt its batteries to various applications. The Company’s lead carbon (PbC) batteries and battery components have application in a range of energy storage systems. It focuses on various areas, such as power grid stabilization, micro-hybrid vehicles, hybrid commercial trucks, automated guided vehicles, and off-grid and renewable energy storage. Its PbC battery technology is a hybrid asymmetric energy storage device. The Company manufactures lead-acid batteries for sale under the Axion brand name at its Clover Lane facility in New Castle, Pennsylvania. The Company also offers the PoweCube. AXION POWER INTERNATIONAL, INC. (OTCMKTS:AXPW) Recent Trading Information
AXION POWER INTERNATIONAL, INC. (OTCMKTS:AXPW) closed its last trading session down -0.00090 at 0.00800 with shares trading hands.