Shares Are De-Listed by NASDAQ, Now on OTCQB
Austin, Texas-based Valence Technology has joined the ranks of financially troubled electric drive transportation companies, last month filing for Chapter 11 bankruptcy protection. The firm has also been de-listed from NASDAQ.
Valence technology shares now trade as OTCQB:VLNC.
According to a company statement, the voluntary Chapter 11 reorganization “is intended to bolster the company’s liquidity in the U.S. and abroad and enable the Company to focus on its core lithium phosphate markets.”
A debtor-in-possession credit facility is being negotiated to allow sufficient liquidity to operate, Valence says, “and to continue the flow of goods and services to its customers in the ordinary course.” Wages will continue to be paid.
“After careful consideration of the implications of Chapter 11 and weighing them against a lack of attractive alternatives, the board of directors and the senior management team believe that this is a necessary step and the right thing to do for the future of Valence,” president and CEO Bob Kanode said in a release.
“Our goal is to continue to operate and meet customer requirements as we work through the Chapter 11 process as quickly as possible. We are fully committed to working with our valued customers.”
Valence says it expects to complete its strategic restructuring during 2012. The firm is being advised by Austin’s Streusand, Landon & Ozburn.
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Source: Valence investor relations announcements, Fleets & Fuels follow-up