Storage

RE Company Refinances

Coming on the heels of restructuring, including the layoffs of more than 400 employees, Ballard Power Systems is making a few financial changes as well.

Vancouver, British Colombia – December 17, 2002 [SolarAccess.com] The company announced 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 CDN$20.25 per share (US$13.016) for total gross proceeds of approximately CDN$155.9 million or US$100.2 million based on current exchange rates. According to the company, the cash infusion will be used for research and product development for portable power generation, small to mid-sized stationary power generation and transportation applications, and the development of high volume manufacturing processes, including the development of product distribution and service capabilities. “The favorable 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 improve Ballard’s ability 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 $375 Million (CDN $583 Million).” 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 where it is subject to regulatory approval.