Battery Technologies 1st Quarter in Line with Expectations Debt Eliminated, Cash Available to Grow Dema Acquisition.Business Editors TORONTO--(BUSINESS WIRE)--May 11, 2001 Battery Technologies Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BTIOF) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :BTI BTI Beverage Testing Institute BTI Boyce Thompson Institute BTI British American Tobacco (stock symbol) BTI Boston Theological Institute Bti Bacillus Thuringiensis Israelensis BTI BioTechnology Institute BTI Binding Tariff Information .) announced at its Annual General Meeting that first quarter 2001 results were in line with previous quarters and expectations. In the quarter, the Company also successfully completed its previously announced Equity Financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , retired its debt obligation to Merita Bank PLC and built cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. to fund the growth of its operations, including investing in growing its recently announced acquisition of the Dema Group of Companies of Oskarshamn, Sweden. The company reported a loss for the quarter of $0.01 per share, consistent with prior year and prior quarters, and reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the former "licensing" business model. The actual quarterly loss was $466,000, a result of lower royalty revenue, slightly offset by total expense reduction, due to significantly lowered interest expense. Selling, general and administrative expenses increased marginally in the quarter due to legal expenses associated with the Dema acquisition. Liabilities, as at March 31, 2001 were reduced by approximately $9 million versus Dec 31, 2000 to $700,000, as the company's long term debt holder, Merita Bank PLC, converted its position to equity, becoming BTI's single largest shareholder holding approximately 19.3% of the outstanding common shares. In previously released news, the company also reported that it had signed a definitive agreement as of May 4, 2001 with Mr. Mats Saljstam, to purchase from him, 100% of the privately held Dema Group of Companies ("Dema Group") of Oskarshamn, Sweden. Dema Group, a sales, marketing and distribution company, currently has exclusive rights for Toshiba's line of Alkaline alkaline /al·ka·line/ (al´kah-lin) (-lin) 1. having the reactions of an alkali. 2. having a pH greater than 7.0. al·ka·line adj. 1. products for Sweden, Norway, Finland, Denmark, Iceland and the Netherlands. In addition, Dema sells battery packs and rechargeables to a broad range of OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers in Scandinavia; most noteably Nokia, Ericsson, SEI and Flextronics. Dema's product portfolio also includes Demacell(TM), BTI's patented RAM(TM) battery system which was launched by Dema in 1998 in Sweden and subsequently in other European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. markets, and Demacell Smartlight, an environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1] line of energy saving lightbulbs. The purchase price for Dema is a combination of BTI shares upon closing, and further BTI shares, based on the achievement of certain performance targets by Dema's management, over the next 24 months, with the sale of the BTI shares to be issued as part of this acquisition subject to a Share Sales Restriction Agreement entered into between BTI and Mr. Saljstam. Following satisfaction of applicable conditions, including receipt of all necessary regulatory approvals, the closing of this transaction is expected in the month of May. "This quarter marks a significant milestone for BTI as we have retired our major debt obligation and can now go forward to grow our business with a Balance Sheet that is no longer a serious impediment A disability or obstruction that prevents an individual from entering into a contract. Infancy, for example, is an impediment in making certain contracts. Impediments to marriage include such factors as consanguinity between the parties or an earlier marriage that is still valid. ," said J. Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Pope, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of BTI. "Further, the acquisition of the Dema Group, which is a strong centrepiece around which we will build our European business, and the fact we were able to purchase it for shares rather than cash; means we now have the resources and the vehicle to make a solid investment in growing the RAM(TM) battery business."
SUMMARIZED BALANCE SHEET (in 000's CDN dollars)
AS AT MARCH 31, 2001 AND DECEMBER 31, 2000
2001 2000
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Current
Cash and cash equivalents 2,269 410
Accounts receivable 420 507
Prepaid expenses and deposits 9 2
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2,698 919
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Deferred charges 112 521
Capital equipment 474 496
RAM Technology - intangible assets 689 763
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Total Assets 3,973 2,699
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Current Liabilities
Accounts payable and accrued liabilities 717 1,295
Bank loans -- 8,357
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Total liabilities 717 9,512
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Total liabilities and shareholders' deficit (3,973)(2,699)
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SUMMARIZED STATEMENT OF OPERATIONS AND DEFICIT (in 000's CDN dollars)
FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
2001 2000
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Revenue
Royalties and other income 136 184*
Contract research revenue and government grants 50 49
License fees --- 15*
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186 233*
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Expenses
Selling, general and administrative 263 225
Research and development 193 185
Depreciation and amortization 100 131
Interest and other expenses 96 189
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652 730*
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Loss for the period 466 497*
Loss per share $0.01 $0.01*
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Further detailed quarterly results will be available in the Report to Shareholders to be distributed within a few days. Battery Technologies Inc. holds 43 patents and is engaged in the worldwide commercialization of the RAM(TM) battery technology and other portable energy products. The Company's RAM(TM) licensees and licensee licensee n. a person given a license by government or under private agreement. (See: license, licensor) LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n. trademarks include: Rayovac Corporation, Renewal(TM); Young Poong Corporation, Alcava(TM); Pure Energy Battery Corporation, Pure Energy(TM) and Grand Battery Technologies, Grandcell(TM). RAM(TM) battery products are available in AA, AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. , C and D sizes. BTI's press releases are available through the Company's Website: http://www.bti.ca. Except for the historical statements contained herein, the matters discussed in this news release, including any revenue, expense and earnings expectations, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. Factors that could cause actual results to differ materially include but are not limited to: the Company's ability to achieve its corporate objectives, uncertainty of additional funding requirements, variable economic and market conditions, disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of production at any of the Company's licensee's manufacturing facilities, political and other disruptive disruptive /dis·rup·tive/ (-tiv) 1. bursting apart; rending. 2. causing confusion or disorder. developments, foreign currency restrictions and/or fluctuations, technological developments by competitors, a successful challenge to the validity of the Company's patents, or any of the other variables referenced in the Company's 20-F filing with the SEC, dated June 29, 2000. Readers are cautioned not to place undue reliance on forward looking statements. RAM(TM) is a registered trademark of Battery Technologies Inc., Richmond Hill, Ontario Richmond Hill (2006 population 162,704) is a town in York Region north of Toronto, Ontario, Canada. It is part of the Greater Toronto Area. History The area was first surveyed by Lieutenant-Governor John Graves Simcoe in 1794 while he was constructing Yonge Street. , Canada. Demacell(TM) is a registered trademark of the Dema Group of Companies, Oskarshamn, Sweden. |
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