Form 8-K for VALENCE TECHNOLOGY INC
--------------------------------------------------------------------------------
30-Jun-2004
Other Events
ITEM 5. OTHER EVENTS AND REQUIRED FD DISCLOSURE.
On June 28, 2004, West Coast Venture Capital, Inc. purchased $3.0 millionof the common stock of Valence Technology, Inc. This represented the fourthfunding on the $14.0 million equity commitment (which was subject to agreementon definitive terms and other conditions) previously made by Berg & BergEnterprises, LLC, an affiliate of Carl Berg, a director and stockholder ofValence, and the President and controlling stockholder of West Coast VentureCapital, Inc. The proceeds will be used to fund corporate operating needs andworking capital.
Under the terms of the purchase, Valence issued to West Coast VentureCapital, Inc. 877,193 shares of its restricted common stock in a privateplacement transaction exempt from the registration requirements of theSecurities Act of 1933, as amended, pursuant to Section 4(2) thereof. West CoastVenture Capital, Inc. purchased these shares at the average closing bid price ofthe stock for the five days prior to the purchase date, or $3.42 per share.
Under Rule 144 of the Securities Act, these shares are restricted frombeing traded by West Coast Venture Capital, Inc. for a period of one year fromthe date of issuance, unless registered, and thereafter may be traded only incompliance with the volume restrictions imposed by this rule and otherapplicable restrictions. |
