Electro Energy Inc (fka EEEI)

[popmenke]

I think it does address it: here is more;

Press Release Source: Electro Energy Inc.


Electro Energy Receives Notice From NASDAQ Related to Certain Marketplace Rules and Interpretive Material
Thursday January 10, 4:30 pm ET


DANBURY, CT--(MARKET WIRE)--Jan 10, 2008 -- Electro Energy Inc. (NasdaqCM:EEEI - News), a leading provider of advanced battery technologies and associated systems (the "Company"), announced today that it received a letter from The NASDAQ Stock Market stating that it has regained compliance with the nominating committee and shareholder approval requirements contained in Sections 4350 of the Marketplace Rules and Interpretive Material 4350-2 (the "Letter"), and that both matters have been closed.
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The Letter stated that the Company regained compliance with Marketplace Rule 4350(c)(4), which requires Director nominees to be selected, or recommended for the Board's selection, by a nominations committee that is comprised solely of independent directors, upon the December 10, 2007 resignation of Martin Klein from the Company's nominating committee.

The Letter also stated that the Company regained compliance with Marketplace Rule 4350(i)(1)(D) and Interpretive Material 4350-2, in connection with its recent issuance of $18 Million 10% Convertible Debenture and Warrants (the "Transaction"). The Company regained compliance by amending the Transaction documents on December 14, 2007 whereby the Company would not issue any shares of common stock until the Company obtained shareholder approval of the total potential issuance of common stock in the Transaction. Previously, the Transaction documents had provided for a prohibition of issuances of common stock exceeding 19.8% of the Company's total outstanding number of shares until shareholder approval was obtained


It looks like it took $18 Million to buy themselves out of trouble but they appear to be okay now. I might have too simple of read on it though. What do you think?

Good investing!