Help, isn't this favorable news?
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Millennium Cell Announces $10 Million Private Placement Financing
April 26, 2005 11:58:02 (ET)
EATONTOWN, N.J., Apr 26, 2005 (BUSINESS WIRE) -- Millennium Cell Inc. (MCEL, Trade), a leading developer of hydrogen battery technology today announced that it has completed a $10 million private placement of its Series C convertible preferred stock ("Series C Preferred") and warrants based on a 25% coverage ratio. The three-year Series C Preferred provides for cumulative dividends at 7% per annum and has a stated conversion price of $2 per share, which is adjustable under certain conditions. The warrants issued with the preferred have an exercise price of $2 per share and also have a term of three years.
Millennium Cell intends to file a resale registration statement with the Securities and Exchange Commission ("SEC") within the next thirty days for the common shares underlying the Series C Preferred, the warrants, and shares potentially issuable as dividends on the Series C Preferred in lieu of cash at our option. The offering was led by H.C. Wainwright & Co., Inc. of New York and funded by a group of accredited institutional investors.
H. David Ramm, Millennium Cell Chief Executive Officer, commented, "Today's announcement of this successful financing will enable us to further build on the recent momentum established in our business. With this additional capital and continued support from our commercial partners and federal government agencies, we look forward to realizing our goal of broad military and commercial availability of hydrogen batteries based on our technology."
Millennium Cell will file today with the SEC a Current Report on Form 8-K that sets forth the terms and conditions of the Series C Preferred and the related offering documents.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned here. The securities described in this release have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent an effective registration statement covering such securities or an applicable exemption from such registration