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Advanced Battery Tech (ABAT) Announces $20M Acquisition of Shenzhen Zhongqiang; To Acquire $26M Parcel in Dongguan City

December 22, 2010 10:15 AM EST
ABAT Hot Sheet
Overall Analyst Rating:
    NEUTRAL (= Flat)
Advanced Battery Technologies, Inc. (Nasdaq: ABAT) announced that they have entered into an agreement for the acquisition of Shenzhen Zhongqiang New Energy Science & Technology Co., Ltd. for a total consideration of $20 million.

$13.5 million will be used to satisfy existing liabilities of Shenzhen Zhongqiang.

Closing is expected by January 1, 2011.

n order to add additional battery capacity, on the same day that it signed the acquisition agreement, the Company also entered into a letter of intent to purchase the land use right to a 54,000 square meter parcel of land together with buildings having 56,000 square meters of usable space in Dongguan City, Guangdong Province.

The total purchase price will be approximately $26 million, and the Company has already made a deposit of approximately $1.3 million.


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