Inc., a leading provider of advanced materials and products for power and
energy systems, today announced the execution of an agreement for a $10 million
private placement of its common stock to Al Yousuf LLC, and resolution of their
potential claims associated with their 2007 investment. In November 2007, Altair
announced the completion of a $40 million private placement with Al Yousuf LLC.
Under the terms of the purchase and settlement agreement, Altair has agreed
to issue an aggregate of 8,000,000 shares of common stock to Al Yousuf LLC.
5,882,353 shares are being acquired by Al Yousuf LLC at a purchase price of
$1.70 per share and 2,117,647 shares are being provided in exchange for a release
of potential breach of contract and other claims related to the 2007 investment.
Under the 2007 purchase agreement, Altair made certain representations and warranties
related to its inventory, warranty reserve and similar matters that were affected
by the write-offs and warranty offers announced in March 2008. All of the shares
will be contractually restricted from resale for at least two years, with one-third
of the shares being released from this restriction on the second, third and
fourth anniversaries respectively. Altair has granted Al Yousuf registration
rights related with respect to the shares.
"This investment demonstrates a deepening of our strategic relationship
with Al Yousuf and a strong validation of the confidence we both share in Altair's
power and energy technologies," said Terry M. Copeland, Altair's chief
executive officer. "The proceeds from this funding will be used to support
manufacturing growth, working capital and general corporate purposes as we expand
the production of our advanced power and energy storage products."
"As Altair's recent outstanding independent testing results confirm, we
continue to see the tremendous global growth opportunity for the company's innovative
battery technology in both the transportation and stationary power markets,"
said Eqbal Al Yousuf, President of Al Yousuf LLC. "We are excited about
the opportunity to expand our relationship with Altair and look forward to helping
the company bring its powerful energy solutions to market."
The share price for the transaction was negotiated based on the 10-day average
closing price between September 22, 2008 and October 3, 2008. The discount to
market was negotiated as part of Al Yousuf's agreement to the extended resale
In addition, Al Yousuf LLC will receive two seats on the company's Board of
Directors. The first board member, Eqbal Al Yousuf, President of Al Yousuf LLC,
will be added at the close of the transaction and the second will be added at
the company's annual shareholders meeting in May 2009. The company plans to
ask for shareholder approval to expand the board, Altair reported.