AXPW 5M cash in pipeline! BUY BUY BUY~~
Effective on November 1, 2016, Axion Power International, Inc. entered into a non binding Tri-Party Letter of Intent with Fengfan Co. Ltd. of Baoding, China
(SH. 600482) and LCB International Inc. of BVI, regarding the sale of Axion’s PbC technology in China, Taiwan, Hong Kong and Macau to Fengfan and LCB,
along with non-exclusive licensing rights in North America. The IP package includes the sale of Axion’s five PbC patents in China; nonexclusive license to its 15
PbC patents in the United States; and will give Fengfan and LCB access to all of Axion’s intellectual property rights to PbC technology for use in a wide variety of
applications, from automotive to energy storage.
The Letter of Intent, calls for a $5 million cash infusion into Axion over a 24-month period. As a result of the signing of this Letter of Intent, Fengfan will make an
initial cash down payment of $250,000 to Axion by December 1, 2016 upon receiving regulatory approvals.
Concurrent with the signing of this Letter of Intent and the receipt of the $250,000, the three parties are targeting a definitive Tri-Party Agreement by the end of
January 2017. Once finalized, quarterly payments to Axion are anticipated to begin in the first quarter of 2017. Then, starting one year following achievement of
agreed-upon PbC volume production goals, or agreed-to PbC battery performance and cost objectives, Axion will receive a royalty of two percent of Fengfan’s net
sales of PbC batteries in Greater China and North America, with a guaranteed annual minimum of $1 million.
