June 17, 2009 (FinancialWire) — Advanced Battery Technologies, Inc. (NASDAQ: ABAT) has agreed to sell additional convertible preferred stock and warrants to three of the institutional investors that purchased similar securities on June 1, 2009.

The investors will purchase the additional preferred stock and warrants for $7 million cash. The securities being sold include 180-day class B warrants that, if exercised, will yield another $7 million in gross proceeds. The company may demand exercise of the class B warrants if certain market conditions are satisfied.

The investors will receive:

 * 7,000 shares of Series F 0% convertible preferred stock. The preferred stock will have an aggregate face value of $7 million, and will be convertible into common stock at $4.00 per share — i.e. a total potential conversion into 1,750,000 common shares.

 * class A warrants to purchase 787,500 shares of common stock for $4.92 per share. The class A warrants will expire in five years and six months.

 * class B warrants to purchase 1,750,000 shares of common stock for $4.00 per share. The class B warrants will expire in 180 days if there is an effective registration statement permitting resale of the underlying common stock and the company’s shareholders have approved an increase in the authorized common stock. If, during the life of the class B warrants, the closing bid price for the company’s common stock exceeds $5.00 for ten consecutive trading days with at least 400,000 shares trading volume, then the company is entitled to force the holders of the class B warrants to exercise the warrants and purchase all 1,750,000 shares.

 * Class C warrants to purchase shares of common stock for $5.68 per share. The number of shares that may be purchased will equal 25% of the number of shares sold upon exercise of the class B warrants. The Class C warrants expire in five years and six months.

Advanced Battery Technologies plans to use the net proceeds from the offering primarily to provide working capital to its recently acquired subsidiary, Wuxi ZhongQiang Autocycle Co., Ltd. The company has agreed to register for resale the common stock underlying the preferred stock and warrants. Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM), acted as the exclusive placement agent for this transaction.

Advanced Battery Technologies, Inc., founded in September 2002, develops, manufactures and distributes rechargeable Polymer Lithium-Ion batteries.

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