A123 to raise $9 mln, get access to $30 mln

(Reuters) - Lithium-ion battery maker A123 Systems Inc said it will raise about $9 million by selling about 7.7 million shares and an unspecified number of warrants to institutional investors.

Separately, A123 said it expects to have access to $30 million of cash as it has satisfied the conditions for the release of the money currently held as restricted cash.

The shares will be sold at $1.30 each. A123 shares were down 5 percent at $1.23 in early trading on Friday.

The company, which has about 147 million shares outstanding, said it expects to close the offering on or about July 10.

Holders of its 6 percent senior convertible notes are expected to issue release documentation for the $30 million on or about July 6, the company said.