Struggling Ener1 Delisted by NASDAQ
The woes of lithium-ion battery manufacturer Ener1 continue to pile up. Following the loss of its contract with then-bankrupt Think Global, Ener1's CEO stepped down. An executive shake-up followed and now Ener1 has been officially delisted by NASDAQ. According to SEC filings, on October 19, Ener1 received a delisting notice from the NASDAQ. In a recent statement, Ener1 "elected not to file an appeal" against its NASDAQ delisting. The delisting immediately resulted in Ener1 stock plummeting to less than 20 cents per share.
The major financial issue for Ener1 comes from its overwhelming support of electric automaker Think. Following the bankruptcy of Think Global—the maker of the Think City electric car—which was declared in June 2011, Ener1 was forced to write down a $59.4 million impairment charge. Eventually, a Russian investor ended up buying up Think’s assets, but that move came too late to assist Ener1's financial situation.
EnerDel, a subsidiary of Ener1, received a $118-million grant from the Department of Energy's $2.4 billion Electric Drive Battery and Component Manufacturing Initiative. EnerDel received the grant to build a lithium-ion battery production facility here in the US. To date, EnerDel has received approximately $55 million of the federal grant and is now closely watched by the DOE as its financial difficulties continue to mount.
Perhaps more importantly, the controversy surrounding Solyndra, the failed solar company that received a half-billion dollars in federal loan guarantees, could expand—threatening to pull in Ener1 and other EV-related companies that benefited from government incentives.
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