A123 Systems, Inc. (PINK: AONEQ)
Update: Since getting the dreaded Q added to their ticker symbol A123 Systems, Inc. (PINK: AONEQ) started trading on the Pinks at $0.11 per share and has been falling quickly.
Smart Penny Stock Speculators know that once they hit the Q's many ex Nasdaq stocks experience explosive bounces fueled by massive short covering rallies and heavy speculation!
On November 6 A123 Systems announced that the United States Bankruptcy Court for the District of Delaware (the "Court") has granted A123 interim approval to use $50 million of Debtor-in-Possession ("DIP") financing, which is being provided by Wanxiang Group Corporation ("Wanxiang"). The financing supplements the pre-petition $22.5 million of liquidity and letter of credit support that Wanxiang provided to A123, which will remain in place.
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Original Article: Penny Stock Speculators are watching A123 Systems (NASDAQ: AONE) a maker of lithium iron phosphate batteries for electric vehicles, after they filed for bankruptcy in Delaware federal court and arranged to sell their automotive battery business to technology firm Johnson Controls for $125 million. According to the filing Johnson will get A123’s battery technology. Also in the sale are the companies battery facilities in Livonia and Romulus, Mich., that were built after the Company received a famous $249 million grant from the Department of Energy and $125 million in incentives from the state of Michigan.
After hitting the OTCBB AONE reached an all time low of $0.06 per share and then exploded after Johnson Controls finally offered a lifeline. The stock continued up after Chinese Automaker Wanxiang Group offered to top Johnson’s offer.
Far from dead in the water there is now hope in the air for AONE after several online sources quoted Wanxiang Group’s attorney saying that they plan to increase their bid for A123’s assets at the upcoming auction.
This bankruptcy came about when A123 was unable to make a payment on a $75 million loan from Wanxiang Group, a Chinese auto parts maker who has been negotiating since August to buy a 80% stock in AONE. The Company ran foal of Republican critics how opposed the sale of A123's tax payer financed intellectual property to foreign buyers. Mitt Romney criticized the firms bankruptcy as a failure of Barack Obama.
On October 19 A123 announced that the United States Bankruptcy Court for the District of Delaware granted the Company's request for certain "first day" orders that help support its business including interim approval to use $15.5 million of its $72.5 million Debtor-in Possession ("DIP") financing from Johnson Controls, Inc. JCI -1.34% ("Johnson Controls")
Since the bankruptcy was announced AONE has moved from lows of $0.05 to highs over $0.20 before dropping back down to just below $0.15 in recent trading sessions. While volume is massive and there is a huge short position that needs to cover this is a highly risky play here.
A123 Systems, Inc. (Nasdaq: AONE) develops and manufactures advanced Nanophosphate® lithium iron phosphate batteries and energy storage systems that deliver high power and energy density, long life, and excellent safety performance. The company’s game-changing technology enables customers to commercialize innovative products for the transportation, electric grid, commercial and government markets. Founded in 2001, A123's proprietary Nanophosphate technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology. Today, A123 Systems is headquartered in Waltham, Mass. and employs more than 2,400 people worldwide.
With a planned investment of more than $1 billion dedicated to capacity expansion, A123 Systems is committed to continuing the development of its scalable manufacturing model. The company leverages more than 1 million square feet of manufacturing facilities in Asia, Europe and North America to mass-produce advanced battery cells and systems to meet increasing global demand.
A123 Systems is a TS-16949 and ISO9001 certified supplier of advanced lithium ion cells and systems designed to help customers quickly and cost-effectively take engineering breakthroughs from conception to commercialization.
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