ITEM 8.01 Other Information
At
the request of the Board of Directors of Axion Power International, Inc., the following statement is being issued.
Over
the last 15 months (January 2016 – March 2017), Axion Power International, Inc., without success, initiated 12 separate
serious, significant, and diligent efforts to commercialize Axion’s PbC
R
battery technology. These efforts were
governed by NDAs and included aggressive actions to sell, partner, merge or joint venture with other technology, energy storage
and battery companies. Except for the letter of intent (October 31, 2016) with a potential Chinese partner, all other efforts
have failed. Further, due to the competitive marketplace which included decreasing prices of alternative technologies such as
lithium ion and the long term nature of these prospective projects, such as the Sharon PA frequency regulation project, combined
with Axion’s inability to raise sufficient cash in a timely manner to withstand such longer timeframes, Axion has been unable
to realize its desired business goals.
In
addition, Axion explored, unsuccessfully, several opportunities to raise significant equity capital.
Due
to internal travel clearance issues in the People’s Republic of China and what has been described to us as very involved
procedures in obtaining clearance of financial payments to foreign businesses, our potential Chinese partner's pledged financial
commitments and travel plans to visit our New Castle, PA facility have changed several times, resulting in significant delays.
First,
these significant and financially impactful delays were communicated in an 8-K issued December 16, 2016 noting the non-receipt
of the pledged down payment by the potential partner of $250,000, previously scheduled for December 1, 2016 and committed in the
$5 million Tri-Party LOI signed October 31, 2016 (announced in a November 1, 2016 press release). In addition, the Company was
advised that the Chairman of our potential partner would make a visit to Axion’s principal offices on January 9, 2017, and
the pledged $250,000 down payment would be received thereafter.
Subsequently,
in an 8-K issued December 22, 2016 the Company advised that the potential Chinese visit would be rescheduled for early to mid-February
2017. This rescheduling caused further delay both to the pledged $250,000 down payment and the anticipated $875,000 quarterly
payments, as part of a Final $5 million Tri-Party Agreement. The Chinese delegation (Chairman plus six senior scientists and marketing
leaders) visited Axion’s Headquarters on February 26, 2017 for a detailed technology review.
These
changes, missed commitments and delays have caused the Company significant financial hardship. As a result, Axion is now forced
to explore alternatives and may retain the services of a professional business advisory firm to assist in this effort.
Without
an immediate infusion of capital, Axion will not be able to continue as a going concern and will not be able to continue its public
company reporting requirements. Nonetheless, the Company will endeavor to issue an unaudited financial report by the end of April
2017.
