Canon Investment Holdings Plans to Invest $48.9 Million in Altair Nanotechnologies

(Nanowerk News) Altair Nanotechnologies, Inc. (Altair) today announced that it reached a definitive agreement whereby Canon Investment Holdings Limited would purchase newly issued common shares of Altair Nanotechnologies, Inc. resulting in 51% of Altair's fully diluted common shares immediately following closing. Canon has agreed to purchase approximately 125,917,996 shares at $0.3882 per share, providing $48.9 million in proceeds to fund the contemplated establishment of a lithium-titanate manufacturing facility in China and Altair's working capital requirements and operations in the United States.
Under a separate conditional supply and technology license agreement, Altair has agreed to sell to Canon affiliate Zhuhai Yintong Energy Co., Ltd. (YTE) an ALTI-ESS 1 Megawatt system, battery cells, and its proprietary lithium-titanate material to be used in the production of battery cells in China. The agreement provides up to $6.6 million in revenue to Altair by the end of 2011 including an advance of $2.0 million for lithium-titanate at the time of signing; Altair is committed to ship 20 metric tons of this material prior to year-end. Purchases of $4.6 million under the supply agreement are conditional upon closing of the transaction. YTE has the option to require repayment of any portion of the $2.0 million advance not offset by shipped orders if the share subscription agreement is terminated by Altair under certain conditions.
"This agreement provides important financial resources to the company, provides immediate access to the Chinese market, and also supports our longer term development activities," said Terry Copeland, Altairnano President and CEO. "This strategic relationship creates a great opportunity for Altair to work closely with YTE and accelerate the commercialization of our technology in world markets."
Altairnano also agreed to provide YTE with an exclusive license to its technology to manufacture battery cells using its advanced lithium-titanate materials for the Greater China market, and a non-exclusive license with respect to the remainder of Asia, Australia and New Zealand, but excluding any Middle-Eastern Country. Under the terms of the license agreement, YTE may grant sub-licenses to affiliated companies and Altair retains the right to license third parties for the contract manufacture of cells, outside of China, for Altair's business requirements.
"The investment in Altair represents an important milestone for our company to significantly grow our business and accelerate the commercialization of the Altair lithium-titanate technology," said Wei Yincang, Chairman and CEO, of Canon. "We have great respect for Altairnano and look forward to a successful alliance."
Under an investor rights agreement, Canon will have the right to appoint a number of directors to the Board that is proportionate to its holdings, have certain registration rights and have certain rights to purchase additional shares in connection with dilutive issuances.
Closing of the transaction is subject to certain conditions, including shareholder approval at a special shareholders meeting anticipated to be held in December 2010, receipt of regulatory approval for the transaction from the Committee on Foreign Investment in the United States (CFIUS), and winding up certain defense contracts. Refer to the related Form 8-K filing available on the Company website at or on the SEC website at, for transaction details and timing associated with the regulatory approvals required for the proposed transaction.
The Company's Board of Directors intends to implement the reverse stock split as previously approved by shareholders, by November 15, 2010.
About Altair Nanotechnologies, Inc.
Headquartered in Reno, Nev. with manufacturing in Anderson, Ind., Altairnano is a leading provider of fast response battery systems technology. Altairnano's lithium-titanate based battery systems are among the highest performing in the world, and are used primarily to provide regulation and renewable integration in the areas of mass transit and stationary power. For more information, please visit Altairnano at
About Canon Investment Holdings Limited
Headquartered in Zhuhai, China, Canon is the holding company of Yintong Energy Company Ltd, which is an advanced manufacturer of high-capacity and high-power lithium battery products. Yintong's lithium battery modules are made with their proprietary circular design, allowing them to produce some of the safest and most durable lithium battery products on the market. Yintong's batteries are used in a range of customer applications, including mass transit and energy storage solutions. For more information, please visit Yintong at
Source: Altair Nanotechnologies (press release)
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