Exhibit 99.1
Enova Systems Raises US$18 Million on UK Listing
Wednesday July 27, 1:26 pm ET
TORRANCE, Calif.--(BUSINESS WIRE)--July 27, 2005--Enova Systems OTCBB:ENOV -
News), a manufacturer and developer of electric, hybrid electric and fuel cell
drive systems for automotive and stationary applications, announces that it has
successfully listed on the London Stock Exchange's Alternative Investment Market
(AIM) in conjunction with a placement of 5.35 million common shares at 215 pence
per share, equivalent to US$3.78 (post reverse split) per share to UK
institutional investors resulting in net proceeds of approximately US$18
million.
The common stock sold in this sale, post the reverse split, trades on the AIM
Market under the RIC Code "ENVS.L". Common shares currently trading on the
NASDAQ OTCBB now trade under the ticker symbol "ENOV" in the U.S. and on the AIM
Market under the RIC Code "ENV.L". The Company intends to seek listing on the
American Stock Exchange as part of its strategy to increase financial market
awareness and liquidity.
As a prerequisite of this placement and listing, the Company also executed a 1
for 45 reverse split of its common shares as of July 20, 2005. Post
consolidation and placement of the new shares, Enova's issued and outstanding
common stock is approximately 14.8 million shares.
The new capital will be used to strengthen the Company's balance sheet,
accelerate research and development expenditure, further establish Enova's sales
force, develop new marketing channels and expand its production capabilities.
President and CEO, Ed Riddell, stated, "The listing and funding demonstrates a
strong vote of confidence for Enova's technology and potential. This, in
addition to our significant anticipated sales growth, will raise our profile
internationally and allow us to market our leading edge hybrid drive systems and
digital power management solutions much more actively to our growing global
customer base as well as assist us in maintaining a competitive technological
edge."
Enova will reflect revenues of approximately US$1.8M on its financial statements
for the six months ended June 30, 2005 in its Form 10-Q to be filed with the
Securities and Exchange Commission on or before August 15, 2005. Furthermore,
Enova currently maintains a backlog of product orders from customers of
approximately $4.1M of revenues of which $2.5M is anticipated to be delivered
and realized during the second half of 2005.
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Enova has relationships with and has made sales to a number of vehicle
manufacturers and other interested parties including both Wrightbus and Eneco in
the UK, First Auto Works, a major Chinese automotive manufacturer, EcoPower
Technology in Italy, Tomoedenki of Japan, the City of New York, USA, Hyundai in
South Korea, Ford Motor Company and several US and Hawaii government agencies.
Enova's market capitalization after the placement, which was underwritten by
Investec UK, is expected to be GBP 31.7 million or approximately US$55 million.
Trading commenced on AIM on July 26, 2005. Investec Bank (UK) Limited, acting
through its divisions Investec Investment Banking and Investec Securities, is
the Company's Nominated Adviser and Broker.
This news release contains forward-looking statements relating to Enova Systems
and its products. These forward-looking statements are subject to and qualified
by certain risks and uncertainties. Such statements do not imply the future
success of the Company or its products. These risks and uncertainties and other
risks are detailed from time to time in Enova Systems' periodic filings with the
Securities and Exchange Commission under the name Enova Systems, Inc., including
but not limited to Enova's annual report on Form 10-K for the year ended
December 31, 2004. Enova assumes no duty to update these statements.
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Contact:
Enova Systems
Financial/Investor Relations
Larry Lombard, 310-527-3847
llombard@enovasystems.com
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