VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 11, 2002--
Ballard Power Systems (NASDAQ:BLDP)(TSX:BLD) announced today that it
has entered into an agreement with a syndicate of underwriters led by
RBC Capital Markets as bookrunner and CIBC World Markets as co-lead
manager, for the issuance of 7.7 million common shares at a price of
C$20.25 per common share or US$13.016 per common share for total gross
proceeds of approximately C$155.9 million or US$100.2 million based on
current exchange rates. The underwriters have an option to purchase up
to an additional 1.9 million shares at any time prior to filing of the
final short-form prospectus.
The issue is being underwritten on a "bought deal" basis and is
being made by way of a prospectus filed in all provinces of Canada and
a registration statement filed in the United States, and is subject to
regulatory approval. Closing of the offering is expected on or about
December 30, 2002.
The net proceeds of the offering will be added to working capital
and principally used for research and product development for portable
power generation, small to mid-sized stationary power generation and
transportation applications, the development of high volume
manufacturing processes and acquisition of related equipment and for
general corporate purposes, including the development of product
distribution and service capabilities.
A registration statement relating to these securities has been
filed with the Securities and Exchange Commission but has not yet
become effective and a preliminary prospectus relating to the
securities has been filed with Canadian securities authorities. These
securities may not be sold, nor may offers to buy be accepted, in the
United States or to or from U.S. persons, prior to the time the
registration statement becomes effective. This communication shall not
constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any sale of the securities in any state in the
United States in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of such state.
"The favourable response of our investors to our five-year plan
announced December 9, 2002, has given us the opportunity to complete a
financing that we anticipate will put Ballard in an improved position
to achieve positive cash flow from operations," said Firoz Rasul,
Ballard's Chairman and Chief Executive Officer. "This financing will
increase our cash reserves to more than US$383 million."
This release contains forward-looking statements that are based on
the beliefs of Ballard's management and reflect Ballard's current
expectations as contemplated under the Safe Harbor provisions of the
U.S. Private Securities Litigation Reform Law of 1995. When used in
this release, the words "estimate", "project", "believe",
"anticipate", "intend", "expect", "plan", "predict", "may", "should",
"will", the negative of these words or such other variations thereon
or comparable terminology are intended to identify forward-looking
statements. Such statements reflect the current views of Ballard with
respect to future events based on currently available information and
are subject to risks and uncertainties that could cause actual results
to differ materially from those contemplated in those forward-looking
statements.
Ballard Power Systems is recognized as the world leader in
developing, manufacturing and marketing zero-emission proton exchange
membrane fuel cells. Ballard is commercializing fuel cell engines for
transportation applications and fuel cell systems for portable and
stationary products. Ballard is also commercializing electric drives
for fuel cell and other electric vehicles, power conversion products,
natural gas and hydrogen generator sets and is a Tier 1 automotive
supplier of friction materials for power train components. Ballard's
proprietary technology is enabling automobile, bus, electrical
equipment, portable power and stationary product manufacturers to
develop environmentally clean products for sale. Ballard is partnering
with strong, world-leading companies, including DaimlerChrysler, Ford,
EBARA, ALSTOM and FirstEnergy, to commercialize Ballard(R) fuel cells.
Ballard has supplied fuel cells to Honda, Nissan, Volkswagen, Yamaha,
Cinergy and Coleman Powermate, among others.
Ballard, the Ballard logo and Power to Change the World are
registered trademarks of Ballard Power Systems Inc. |
