MILWAUKEE, WI--(Marketwired - Jan 7, 2014) - ZBB Energy Corporation (
The Exchange also notified ZBB that if the Company did not address the low selling price of its common stock, either through a reverse stock split or other action, within a reasonable amount of time after October 14, 2013, then ZBB would have become subject to additional procedures and requirements under the Exchange's Company Guide. Accordingly, the Company effected a one-for-five reverse stock split on October 31, 2013 to address the low selling price of its common stock. As previously reported, at the 2012 Annual Meeting of Shareholders, the Company's shareholders approved a proposal that gave the Board of Directors the authority to effect a reverse stock split in its discretion.
The notice provided that the Company should submit a plan that would reestablish compliance with the listing requirements. On November 14, 2013 the Company submitted a plan designed to reestablish compliance with the Exchange's continued listing standards.
On December 31, 2013, the Exchange staff notified the Company that it had accepted the Company's compliance plan and granted the Company an extension until April 15, 2015, to regain compliance with the minimum stockholders' equity continued listing standards. In addition, the Exchange notified the Company that ZBB has made a reasonable demonstration of its ability to make substantial progress toward regaining compliance with Section 1003(a)(iv) by February 14, 2014. Failure to make progress consistent with the plan or to regain compliance with the continued listing standards by the end of the applicable extension periods could result in the Company's shares being delisted from the Exchange. The Company will be able to continue its listing during the plan period pursuant to the extension and will be subject to periodic review by the Exchange staff.
On December 17, 2013, the Company announced it entered into a new product development partnership and expanded license agreement with Lotte Chemical. Under the terms of the strategic partnership, Lotte will acquire an expanded non-exclusive license to sell the Company's zinc-bromide continuous flow battery globally with the exception of the United States and China. In addition, ZBB Energy and Lotte entered into a new research development agreement. The next generation 500kWh battery represents a tenfold increase in storage capabilities relative to the current ZBB EnerStore® 50kWh product. With the signing of these agreements, ZBB realizes a substantial improvement in their cash position, as well as longer term opportunities for additional revenues and cash flow. With the additional cash flow resulting from these agreements, ZBB expects sufficient capital to fund operations through at least fiscal year 2014, and ongoing contributions to the Company's operating capital throughout most of fiscal year 2015.
Eric Apfelbach, the Company's President and Chief Executive Officer, said, "We are executing on our plan, including the actions that we already completed, and believe the successful execution of this plan will enable us to regain compliance with the Exchange's listing standards. An integral portion of our plan includes an equity financing, which we will execute at the optimal time for the Company."
About ZBB Energy Corporation
ZBB Energy Corporation (
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Certain statements made in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended that are intended to be covered by the "safe harbor" created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "could," "seek," "intend," "plan," "estimate," "anticipate" or other comparable terms. Forward-looking statements in this press release may address the following subjects among others: statements regarding the sufficiency of our capital resources, expected operating losses, expected revenues, expected expenses and our expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.