Michail, reviewing VLNC's latest 10-Q form as of Feb. 2001, I see that they had already received additional funding from this statement:
VALENCE TECHNOLOGY ANNOUNCES NEW $30 MILLION FINANCING?
HENDERSON, Nev., January 18, 2001 Valence Technology, Inc. (NASDAQ: VLNC), a leader in the development and commercialization of lithium-ion polymer rechargeable batteries, today announced that it has entered into an agreement with West Coast Venture Capital, Inc., a company wholly owned by the 1981 Kara Ann Berg Trust, to acquire certain assets valued at approximately $30 million in a tax free exchange of approximately 3.5 million newly issued shares of Valence Technology. The transaction is subject to execution of final documents. The issued shares will contain restrictive legends and will be covered by a two-year stock lock-up agreement. The assets acquired include approximately $30 million in cash and investment equivalent instruments earning over 7% interest and are guaranteed by the 1981 Kara Ann Berg Trust. "We believe this additional financing will provide us with ample resources to accelerate Valence's execution of its strategy of becoming a global licensor of technology," aid Jay L. King, Chief Financial Officer of Valence Technology, Inc.
Also, from the same form, the CEO states this qtr's revenues should come in at $3M vs. $1.8. But the company had already laid off over 150 people last quarter, so I think this is not good news for a company that touts future growth.
Do you still think this company is due for a short on late Monday? |
