Axion Power up 154.6% on potential Chinese licensing deal
Jun 15 2015, 11:44 ET | About: Axion Power International, ... (AXPW) | By: Eric Jhonsa, SA News Editor
Penny stock Axion Power (NASDAQ:AXPW) has soared to a lofty $0.085 after announcing it has signed a letter of intent with Shanghai-based LCB International for a tech development/licensing program. The LOI calls for the companies to execute final agreements within 60 days. The agreements, should they be inked, will "grant LCB the right to manufacture and sell PbC batteries and other Axion products on an exclusive basis in the People's Republic of China, Taiwan, Macao and Hong Kong." Axion will get a $250K up-front payment, along with "further staged payments after final agreements are signed." Axion could potentially receive up to $10M over 2 years via license fees, convertible preferred stock sales, and senior convertible notes. The company would also be "paid royalties for the longer of the last-to-expire patent licensed or up to 15 years." The company adds LCB plans to form a Chinese JV to produce Axion's batteries and related peripherals/electronics, and that Axion "will have an equity participation in the Venture." Shareholders will need to approve various deal terms. Axion's market cap now stands at $7.9M. |