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As filed with the Securities and Exchange Commission on January 4, 2000
Registration No. 333-
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
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BOLDER TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 84-1166231
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
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4403 TABLE MOUNTAIN PARKWAY
GOLDEN, COLORADO 80403
(303) 215-7200
(Address, including zip code, and telephone number, including area code,
of registrant's principal executive offices)
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ROGER F. WARREN
PRESIDENT AND CHIEF EXECUTIVE OFFICER
BOLDER TECHNOLOGIES CORPORATION
4403 TABLE MOUNTAIN PARKWAY
GOLDEN, COLORADO 80403
(303) 215-7200
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
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COPIES TO:
JAMES H. CARROLL, ESQ.
ANDREW D. DICKINSON, ESQ.
COOLEY GODWARD LLP
2595 CANYON BOULEVARD, SUITE 250
BOULDER, CO 80302
(303) 546-4000
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APPROXIMATE DATE OF PROPOSED SALE TO THE PUBLIC:
From time to time after the registration statement becomes effective.
If any of the securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box. [ ]
If any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933 other than securities offered only in connection with dividend or interest
reinvestment plans, please check the following box. [X]
If this Form is filed to register additional securities for an offering pursuant
to Rule 462(b) under the Securities Act, please check the following box and list
the Securities Act registration statement number of the earlier effective
registration statement for the same offering. [ ]
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under
the Securities Act, please check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [ ]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [ ]
CALCULATION OF REGISTRATION FEE
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AMOUNT TO BE PROPOSED MAXIMUM OFFERING PROPOSED MAXIMUM AGGREGATE AMOUNT OF
TITLE OF SECURITIES TO BE REGISTERED REGISTERED PRICE PER SHARE (1) OFFERING PRICE (1) REGISTRATION FEE
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Common Stock, par value $.001 (2) 195,000 shares (3) $13.15625 $2,565,468.75 $713.20
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(1) Estimated solely for the purpose of calculating the amount of the
registration fee pursuant to Rule 457(c) based on the average of the high
and low sale prices of the Registrant's common stock as reported on The
NASDAQ National Market on December 29, 1999.
(2) Includes Preferred Share Purchase Rights ("Rights"). The Rights are
associated with and trade with the Common Stock. The value, if any,
attributable to the Rights is reflected in the market price of the Common
Stock.
(3) Issuable upon the exercise of a warrant to purchase 195,000 shares of the
Registrant's common stock.
The Registrant hereby amends this registration statement on such date
or dates as may be necessary to delay its effective date until the Registrant
shall file a further amendment that specifically states that this registration
statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the registration statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
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SUBJECT TO COMPLETION PRELIMINARY PROSPECTUS
DATED JANUARY 4, 2000
195,000 SHARES
BOLDER TECHNOLOGIES CORPORATION
COMMON STOCK
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This Prospectus covers 195,000 shares of our common stock issuable upon
the exercise of an outstanding warrant. The selling stockholder identified in
this Prospectus may exercise the warrant at any time prior to December 16, 2004
and may sell the shares of common stock issuable upon exercise of the warrant
from time to time on terms to be determined at the time of sale. We will not
receive any of the proceeds from the sale of shares by the selling stockholder.
Our shares trade on The NASDAQ National Market under the symbol "BOLD."
On December 29, 1999, the closing sale price of the common stock, as reported on
The NASDAQ National Market, was $13.0625.
The selling stockholder may sell the shares of common stock described
in this Prospectus in public or private transactions, on or off The NASDAQ
National Market, at prevailing market prices, or at privately negotiated prices.
The selling stockholder may sell shares directly to purchasers or through
brokers or dealers. Brokers or dealers may receive compensation in the form of
discounts, concessions or commissions from the selling stockholder.
We will not be paying any underwriting commissions or discounts in the
offering of these shares. We will, however be paying for the expenses incurred
in the offering of the shares. For its shares, the selling stockholder will
receive the purchase price of the shares sold less any agents' commissions and
underwriters' discounts and other related expenses. More information is provided
in the section titled "Plan of Distribution" on page 11.
Our address and telephone number are: BOLDER Technologies Corporation.,
4403 Table Mountain Parkway, Golden, Colorado 80403, (303) 215-7200.
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THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK. YOU SHOULD ACQUIRE
SHARES ONLY IF YOU CAN AFFORD A COMPLETE LOSS. SEE "RISK FACTORS" BEGINNING ON
PAGE 6.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
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THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED.
WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER
TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO BUY THESE
SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
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, 2000
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TABLE OF CONTENTS
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Where You Can Find More Information ...................................... 2
The Company .............................................................. 4
Forward-Looking Statements ............................................... 5
Risk Factors ............................................................. 6
Use of Proceeds .......................................................... 11
Selling Stockholder ...................................................... 11
Plan of Distribution ..................................................... 11
Description of Capital Stock ............................................. 12
Legal Matters ............................................................ 15
Experts .................................................................. 16
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WHERE YOU CAN FIND MORE INFORMATION
We file reports, proxy statements and other information with the
Securities and Exchange Commission. You may inspect and copy such material at
the public reference facilities maintained by the SEC at Room 1024, 450 Fifth
Street, N.W., Washington, D.C. 20549, and at the SEC's regional offices at
Northwestern Atrium Center, 500 West Madison Street, Suite 1400, Chicago,
Illinois 60661, and at Seven World Trade Center, New York, New York 10048. You
can also inspect such materials at The National Association of Securities
Dealers, 1735 K Street, N.W., Washington, D.C.
Please call the SEC at 1-800-SEC-0330 for more information on the
public reference rooms. You can also find our SEC filings at the SEC's web site,
"http://www.sec.gov."
The SEC allows us to "incorporate by reference" the information that we
file with them, which means that we can disclose important information to you by
referring you to those documents. The information incorporated by reference is
considered to be part of this Prospectus. Information in this Prospectus
supercedes information incorporated by reference which we filed with the SEC
prior to the date of this Prospectus. Information that we file later with the
SEC will automatically update and supercede this information. We incorporate by
reference the documents listed below and any future filings we make with the SEC
to under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of
1934:
o Annual Report on Form 10-K for the fiscal year ended December 31, 1998;
o Quarterly Report on Form 10-Q for the period ended March 31, 1999;
o Quarterly Report on Form 10-Q for the period ended June 30, 1999;
o Quarterly Report on Form 10-Q for the period ended September 30, 1999;
o Current Report on Form 8-K dated September 22, 1999;
o Current Report on Form 8-K dated November 8, 1999;
o Definitive Proxy Statement dated April 30, 1999; and
o The description of common stock contained in BOLDER Technologies
Corporation's Registration Statement on Form 8-A declared effective by
the Commission on April 29, 1996, including any amendment or reports
filed for the purpose of updating such description.
2.
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You may request a copy of these filings (excluding exhibits which are
not specifically incorporated by reference into this Prospectus), at no cost to
you, by writing or telephoning us at:
BOLDER Technologies Corporation
4403 Table Mountain Parkway
Golden, Colorado 80403
Attention: Investor Relations
Telephone: (303) 215-7200
http://www.boldertmf.com
This Prospectus constitutes a part of a registration statement on Form
S-3 that has been filed with the SEC. SEC rules permit us to omit certain of the
information contained in the registration statement. For such information,
please refer to the registration statement on file with the SEC, including the
exhibits to the registration statement. The information contained on our Web
site does not constitute a part of this Prospectus.
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YOU SHOULD RELY ONLY UPON THE INFORMATION CONTAINED IN THIS DOCUMENT OR
DOCUMENTS TO WHICH WE HAVE REFERRED YOU. WE HAVE NOT AUTHORIZED ANYONE TO
PROVIDE YOU WITH INFORMATION THAT IS DIFFERENT. YOU SHOULD NOT ASSUME THAT THE
INFORMATION IN THIS PROSPECTUS IS ACCURATE AS OF ANY DATE OTHER THAN THE DATE ON
THE FRONT OF THIS PROSPECTUS.
3.
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THE COMPANY
We design, develop and produce high power density, rechargeable
batteries and innovative battery-powered products based on our patented Thin
Metal Film ("TMF(TM)") technology. Our small size, light weight, high power
density batteries recharge rapidly, possess no memory effect and provide
superior performance in cold temperatures. In addition, our TMF(TM) batteries
are manufactured using inexpensive, readily available raw materials, which make
them cost effective to build at high production volumes. Our TMF(TM) battery
technology enhances many existing products that use batteries and enables many
new applications that could not previously be powered by batteries. We are
currently manufacturing an average of 20,000 to 25,000 1 Ah (Ampere hour) cells
per week. We anticipate increasing production as we continue to transition from
a development stage company to commercial operations.
We recently introduced our first commercial product, SecureStart(TM),
an easy-to-use, instant engine starter that utilizes our TMF(TM) battery
technology, six of our 1 Ah cells and built-in cables to quickly jump start cars
with "dead" batteries. Our SecureStart(TM) instant engine starter is now
available through Sears stores, Orchard Supply Hardware stores, and a number of
catalogs, including the Sears Craftsman holiday catalog and the Neiman Marcus
catalog. We recently launched our e-commerce website (www.securestartnow.com) to
sell SecureStart(TM) directly to consumers.
Our high power density TMF(TM) batteries are designed to quickly and
efficiently deliver large bursts of power. This contrasts with high energy
density batteries, which are designed to provide low amounts of power over an
extended period of time for applications such as laptop computers, cellular
telephones and other electronic devices. We believe our TMF(TM) batteries are
attractive for use in a variety of applications, including engine starting,
power tools, standby power and industrial power quality maintenance.
We are developing products for engine starting applications in the
automobile, motorsports and marine markets. There are two major categories of
engine starting applications -- jump starting and primary starting.
o JUMP STARTING. Our jump starting products are portable and are
used to provide a quick engine start. SecureStart(TM) is our
first commercial jump starting product. SecureStart(TM) is
self-contained and does not require the use of separate jumper
cables, additional batteries or another vehicle. SecureStart(TM)
weighs only five pounds, holds its charge for up to one year and
can be recharged in as little as five minutes. We are also
currently developing jump starting products for the automobile
professional and marine markets.
o PRIMARY STARTING. We are designing primary starting batteries,
both for use by original equipment manufacturers ("OEMs") in
products they manufacture and for use in aftermarket
applications. We plan to introduce several primary starting
products for the automobile, motorsports and marine markets over
the next several years.
We granted Johnson Controls, Inc. ("JCI") a limited duration, worldwide
exclusive royalty-bearing license with respect to the automotive primary
starting market. JCI is a major supplier of batteries to the automobile
industry. Recently, JCI announced plans to offer engine starting batteries,
based upon our TMF(TM) technology, for dual-battery and 36-volt systems under
development by major automotive manufacturers. We plan to introduce a line of
automobile and truck primary starting batteries for both automotive
manufacturers and the automotive aftermarket after JCI's exclusivity ends in
July 2001.
In addition to engine starting applications, we plan to address other
applications by selling our batteries to OEM customers that possess
application-specific expertise in areas such as standby power systems, portable
generators and high power/pulse power portable tools. We are currently working
with Coleman and Skil-Bosch, among others, to incorporate our TMF(TM) battery
technology into some of their products.
4.
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We believe there are barriers to entry for potential competitors
interested in developing technology similar to our TMF(TM) technology.
o INTELLECTUAL PROPERTY PROTECTION. We hold 7 issued and 10 pending
United States patents and 21 issued and 13 pending foreign
patents covering a number of inventions relating to various
aspects of our TMF(TM) technology. In addition, unfair
competition and trade secrets laws protect certain aspects of our
intellectual property and proprietary rights. We believe our
issued and pending patents and other intellectual property rights
provide significant protection for our proprietary designs and
processes.
o TECHNOLOGY AND MANUFACTURING EXPERTISE. We have invested a
significant amount of time and capital to develop our
TMF(TM) technology and the associated manufacturing process.
Through the use of sophisticated process controls, we have
collected large amounts of data regarding the characteristics and
performance of the TMF(TM) batteries we have produced to date. We
have utilized this information to substantially refine our
TMF(TM) battery technology and manufacturing process. Based on
our experience, we believe it would take a significant amount of
time, in addition to a substantial capital investment, to develop
a competing high power density battery technology.
o EXPERIENCED MANAGEMENT AND KEY EMPLOYEES. Our executive officers
and key employees have extensive experience in the battery
industry and, in particular, in designing, developing and
producing small format, spiral-wound batteries, such as our
TMF(TM) batteries. We believe this specialized expertise gives us
a competitive advantage.
Our objective is to become a major supplier of high power density
rechargeable batteries and innovative battery-powered products. Our strategies
for achieving this objective include:
o developing products that exploit the unique capabilities of
TMF(TM) batteries;
o creating brand recognition for our trademarks, including
SecureStart(TM) and TMF(TM);
o using precision process control and advanced analytical tools to
improve performance and reduce manufacturing costs; and
o protecting and enhancing our proprietary technology base.
We were incorporated in Colorado in 1991 and reincorporated in Delaware
in 1993. Our executive offices are located at 4403 Table Mountain Drive, Golden,
Colorado 80403, and our telephone number is (303) 215-7200.metal film.
FORWARD-LOOKING STATEMENTS
This Prospectus and the documents incorporated by reference herein
include forward-looking statements. Those statements are sometimes indicated by
words such as "anticipate," "estimate," "believe," "consider," "expect,"
"project," "intend" and similar expressions. Forward-looking statements are
based on assumptions of future events, some of which will not occur. Actual
results will vary from those set forth or implied in the forward-looking
statements and the variances may be material. See "Risk Factors."
5.
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RISK FACTORS
An investment in our common stock involves a high degree of risk. You
should carefully consider the following "Risk Factors" before you decide to buy
our common stock. The risks discussed below, as well as other risks not
presently known to us or that we currently deem immaterial, may have a material
adverse effect on our business, results of operations and financial condition.
WE ARE A DEVELOPMENT STAGE COMPANY, HAVE A LIMITED OPERATING HISTORY AND ARE
SUBJECT TO MANY RISKS APPLICABLE TO A YOUNG COMPANY.
Since our inception in 1991, we have been principally engaged in
research and development activities relating to our TMF(TM) batteries. We
commenced limited commercial production of our TMF(TM) batteries in October
1998. We will encounter the risks and difficulties frequently encountered by
development stage companies, including those set forth below.
WE HAVE A HISTORY OF LOSSES, WE EXPECT TO LOSE MONEY IN THE FUTURE AND WE MAY
NOT ACHIEVE OR SUSTAIN PROFITABILITY.
We have not achieved profitability or earned material revenues from the
sale of our products. As of September 30, 1999, we had an accumulated deficit of
$44.1 million. We do not expect to be profitable prior to the second half of
2000, at the earliest. Prior to achieving profitability, we expect to incur
significant losses as we continue to incur substantial sales and marketing,
research and development and general and administrative expenses. No assurance
can be given that we will ever be profitable or, if we do achieve profitability,
that we will sustain or increase profitability.
MARKET ACCEPTANCE OF OUR TMF(TM) BATTERIES AND END-USER PRODUCTS IS UNCERTAIN.
The markets for our products are unproven, and no assurance can be
given that market acceptance will be achieved. We cannot accurately anticipate
how our products will perform in practice, what problems consumers will
experience or the rates at which consumers will return our products or submit
warranty claims. Our success will depend, in large part, on our ability to meet
end-user and OEM customer requirements by developing and introducing, on a
timely basis, new products and enhanced or modified versions of our existing
products. There can be no assurance that we will be able to do so.
WE HAVE LIMITED EXPERIENCE IN MARKETING OUR PRODUCTS AND WE ARE DEPENDENT ON
OTHERS TO DO SO.
We have limited experience in marketing our products and will be
dependent on outside sales representatives, distributors, resellers and retail
operators to do so. We may not be able to obtain additional or retain any
present or future sales representatives, distributors, resellers or retailers
needed to develop material retail sales. It is likely that any agreements we may
enter into with such persons will not be exclusive, will not have minimum
purchase or resale requirements, and may be terminated by either party without
cause. These other persons will not be within our control and may carry products
that are competitive with our products, not give a high priority to the
marketing of our products, not continue to carry our products or not adequately
market our products.
WE ARE IN THE EARLY STAGES OF MANUFACTURING AND MUST CONTINUE TO DEVELOP OUR
MANUFACTURING CAPABILITIES.
The difficulties and risks related to the implementation of our
manufacturing line and new process technology have in the past, and may in the
future, materially adversely affect our operating results. We have not yet
operated our initial automated line at full capacity or over an extended period
of time.
In order to become profitable, we will need to materially increase the
production yield of our existing manufacturing line and successfully fabricate,
install and qualify additional automated production equipment that will produce
at acceptable yields.
6.
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Because we have only one manufacturing line and expect that any
additional lines we build in the foreseeable future will be located in our
current building, any fire or other calamity affecting the existing line or our
facility could have a material adverse effect on us.
We will also need to hire and train a substantial number of new
manufacturing workers. The availability of skilled and unskilled workers in the
Denver metropolitan area, the site of our manufacturing facility, is limited due
to a relatively low unemployment rate.
WE MAY NOT BE ABLE TO OBTAIN ADDITIONAL CAPITAL TO FUND OUR OPERATIONS WHEN
NEEDED.
From our inception, we have financed our operations primarily through
private and public offerings of our equity securities. We currently expect to
have adequate capital resources through December 2000. We will require
substantial capital resources in the future. We do not have any availability
under our loan agreement or other capital resources. Our inability to obtain
required capital resources when needed would have a material adverse effect on
our business, results of operations and financial condition.
FAILURE TO MANAGE OUR GROWTH EFFECTIVELY COULD ADVERSELY AFFECT OUR BUSINESS.
Our transition from a development stage company to a manufacturing
company has strained and will continue to strain our managerial, operational and
financial resources. If our products achieve market acceptance, we will need to
increase our number of employees, significantly increase our manufacturing
capability and enhance our operating systems and practices. We cannot assure you
that we will be able to effectively do so or otherwise manage our future growth.
WE ARE DEPENDENT UPON EFFECTIVE STRATEGIC RELATIONSHIPS.
Our business strategy includes relying on a limited number of strategic
relationships for the commercialization of our products, assistance in the
design and development of our products, and manufacturing and marketing
expertise. Our existing relationships may be inadequate to, and we may be unable
to enter into other relationships that will, achieve our objectives in these
areas. To the extent we enter into strategic partnerships, we may be required to
share revenues, contribute to expenses and grant to the other parties licenses
to manufacture, market or sell products based upon our TMF(TM) technology, which
could adversely affect our operating results.
IF WE ARE UNSUCCESSFUL IN SELLING TO OEMS, OUR BUSINESS COULD BE HARMED.
Our business strategy includes selling our products to OEMs, and we are
investing resources to do so. No assurances can be given that we will be
successful in selling to OEMs. The ability of OEMs to successfully integrate our
products into theirs and to successfully market those products is beyond our
control.
WE RELY ON THIRD PARTIES TO MANUFACTURE PARTS FOR AND ASSEMBLE OUR PRODUCTS.
We currently rely on third parties to manufacture parts for and
assemble SecureStart(TM). We may outsource additional manufacturing and assembly
work in the future. These third parties are not under our control, and their
failure to perform could have a material adverse effect on our business, results
of operations and financial condition.
WE ARE DEPENDENT ON OUR SUPPLIERS FOR RAW MATERIALS.
To date, we have used sole or limited source suppliers for certain key
raw materials used in our products. We have no long-term contracts or other
guaranteed supply arrangements for any of these materials. If our suppliers are
unable to meet our quality and volume requirements for raw materials in a timely
manner and at an acceptable cost, it could have a material effect on our
business, results of operations and financial condition.
7.
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INTENSE COMPETITION EXISTS IN THE BATTERY AND INSTANT ENGINE STARTING INDUSTRIES
AND WE EXPECT COMPETITION TO CONTINUE TO INTENSIFY.
Competition in the battery and instant engine starting industries is
intense and is expected to increase in the future. Our competitors range from
development stage companies to major domestic and international companies.
Many of our competitors have significant financial resources,
established market positions, longstanding relationships with OEMs and other
customers, and significantly greater name recognition, technical, marketing,
sales, manufacturing, distribution and other resources than we do. No assurance
can be given that we will be able to compete successfully with those companies,
including with JCI in the markets where JCI has a license from us, or other
competitors.
Prestone Products Corporation (a subsidiary of AlliedSignal
Corporation), Century Mfg. Co. (a subsidiary of Pentair, Inc.) and others are
marketing portable jump starters for automotive, marine and other applications,
some of which are priced materially lower than SecureStart(TM), and offer a
variety of features. Some of these products, with a power inverter, can also
power computers and other small appliances. While we believe SecureStart(TM) is
superior to these other products in several respects, no assurance can be given
that we will market SecureStart(TM) successfully against the products of these
other companies.
WE MAY NOT BE ABLE TO COMPETE SUCCESSFULLY IF WE FAIL TO KEEP PACE WITH RAPIDLY
CHANGING TECHNOLOGIES.
The battery industry has experienced, and is expected to continue to
experience, rapid technological change. If competing technologies that
outperform our batteries are developed and successfully introduced, our
business, operating results and financial condition may be materially adversely
affected.
OUR INABILITY TO PROTECT OUR INTELLECTUAL PROPERTY MAY ADVERSELY AFFECT OUR
ABILITY TO COMPETE.
Patents, trade secrets and other proprietary rights are important to
our success and competitive position. Our efforts to protect our proprietary
rights may be inadequate and may not prevent others from claiming violations by
us of their proprietary rights.
Because the status of patents involves complex legal and factual
questions and the breadth of claims issued is uncertain, we cannot be certain
that any of our issued patents will afford meaningful protection against
competitors with similar technology. Some foreign countries provide
significantly less patent protection than the United States. We cannot be
certain that our pending applications will result in issued patents.
In addition to patent protection, we rely on the law of unfair
competition and trade secrets to protect our proprietary rights. Other companies
may infringe upon our patents and other proprietary rights or may obtain patents
that will require us to license or design around such patents. If we resort to
legal proceedings to enforce our proprietary rights, the proceedings could be
burdensome and expensive and the outcome could be uncertain. The unauthorized
misappropriation of our proprietary rights could have a material adverse effect
on our business, results of operations and financial condition.
WE ARE NOW, AND MAY IN THE FUTURE BE, SUBJECT TO CLAIMS ALLEGING INTELLECTUAL
PROPERTY INFRINGEMENT.
We are now, and may in the future be, subject to claims alleging that
we have infringed third-party proprietary rights. If we were to discover that
any of our products infringed third-party rights, we may not be able to obtain
permission to use those rights on commercially reasonable terms. If we resort to
legal proceedings to defend against alleged infringements, the proceedings could
be burdensome and expensive and could involve a high degree of risk.
In September 1999, Century Mfg. Co., an affiliate of Pentair, Inc.,
filed a complaint against us in the United Stated District Court for the
District of Minnesota. Century manufactures a line of portable power and jump
starting products and held discussions with us in 1996 regarding the possible
incorporation of our TMF(TM) batteries into its potential products. Century
alleges that the concept of using a charging battery to charge and prolong the
shelf life of our TMF(TM) cells in a jump starting product is proprietary to
Century and that, among other things, we have
8.
<PAGE> 10
misappropriated Century's trade secrets and breached a confidentiality agreement
in producing and manufacturing SecureStart(TM). The complaint seeks injunctive
relief and unspecified damages.
In October 1999, the Federal District Court Judge hearing the case
denied Century's request for a preliminary injunction, stating that Century had
not shown either a probability of prevailing on the merits or irreparable
injury, both of which must be established to obtain a preliminary injunction.
This determination does not dispose of the case, which remains pending trial.
Century previously informed us that it had a United States patent
application pending in which certain claims covered the SecureStart(TM) product.
In December, the United States Patent Office issued the patent to Century.
Thereafter, Century filed a second complaint against us in the United Stated
District Court for the District of Minnesota. In its second complaint, Century
alleges that SecureStart(TM) infringes the patent that was recently issued by
the United States Patent Office. The complaint seeks injunctive relief and
unspecified damages.
We have not yet responded to Century's complaints but we intend to
defend against them vigorously. Defending against Century's claims, with or
without merit, could be time consuming and result in costly litigation. An
adverse outcome in the Century litigation or a valid patent infringed by
SecureStart(TM) could have a material adverse effect on our business, results of
operations and financial condition.
WE MAY NOT BE ABLE TO SUCCESSFULLY OPERATE OUR BUSINESS IF WE LOSE KEY PERSONNEL
OR FAIL TO ATTRACT AND RETAIN HIGHLY SKILLED PERSONNEL.
We believe that our success will depend on the continued services of
our senior management team and other key personnel, as well as our ability to
attract and retain skilled personnel. The loss of any of our senior management
team or other key employees or our failure to attract and retain the necessary
scientific, manufacturing, sales and marketing personnel could have a material
adverse effect on our business, results of operations and financial condition.
ENVIRONMENTAL MATTERS MAY MATERIALLY ADVERSELY AFFECT US.
Our operations involve the storage, use and disposal of a number of
toxic and hazardous materials, including lead, lead oxide, sulfuric acid,
solvents and adhesives. We are required to maintain our research and
manufacturing operations in compliance with United States federal, state and
local laws and regulations, including but not limited to CERCLA and OSHA, that
govern the storage, use and disposal of various chemicals used in and waste
materials produced by the manufacture of our TMF(TM) batteries.
We may be unable to operate in conformity with applicable environmental
and safety laws and regulations. Changes in these laws or regulations may
require us to incur substantial capital or operating costs to achieve or
maintain compliance. Any failure by us to comply with safety laws and
regulations, including adequately controlling the discharge of our hazardous
materials and wastes could have a material adverse effect on our business,
results of operations and financial condition.
OUR PRODUCT LIABILITY INSURANCE MAY NOT BE SUFFICIENT TO COVER PRODUCT LIABILITY
CLAIMS.
The sale of our products may expose us to product liability claims from
consumers. Although we maintain product liability insurance in amounts we
believe are reasonable, we cannot be certain that insurance will be adequate to
cover any potential liability relating to one or more claims of product
liability, or that such insurance will be available at an acceptable cost in the
future.
In this regard, lead acid batteries, including our TMF(TM) battery, may
develop significant internal pressures during severe overcharge conditions due
to the release of gases as a byproduct of the chemical reaction occurring in the
cell. In order to prevent potential pressure build up, our batteries incorporate
a Bunsen pressure relief valve which, under normal overcharge conditions, will
allow the venting of small amounts of gases, primarily hydrogen and oxygen. If
the batteries are subjected to abusive overcharge or overdischarge conditions,
larger amounts of these gases may be vented, which when mixed with air, can
cause explosions. In addition, under such conditions, toxic gases or sulfuric
acid spray may be released. Sulfuric acid can cause burns and other severe
injuries. Such occurrences or misuse of our products may result in product
liability claims against us.
9.
<PAGE> 11
CONTROL BY EXISTING STOCKHOLDERS MAY LIMIT YOUR ABILITY TO INFLUENCE THE OUTCOME
OF DIRECTOR ELECTIONS AND OTHER MATTERS REQUIRING STOCKHOLDER APPROVAL.
Approximately 26% of our outstanding stock is owned by two private
equity funds. These stockholders may be able to significantly influence or
control matters that require stockholder approval, including electing directors
and approving significant corporate transactions.
CERTAIN PROVISIONS IN OUR CORPORATE DOCUMENTS MAY DISCOURAGE OUR ACQUISITION BY
OTHERS AND THUS DEPRESS OUR STOCK PRICE.
Our corporate documents, including our stockholders rights plan, and
Delaware law could make it more difficult for a third party to acquire us, even
if a change in control would be beneficial to our stockholders. These and other
provisions could limit the price that investors might be willing to pay for our
securities or preclude a sale of our company at a time and price beneficial to
our stockholders.
A NUMBER OF FACTORS COULD CAUSE THE PRICES FOR OUR SECURITIES TO CONTINUE TO BE
HIGHLY VOLATILE, AND YOU MAY NOT BE ABLE TO RESELL OUR SECURITIES AT OR ABOVE
THE OFFERING PRICE.
Our annual and quarterly operating results may fluctuate and may be
below expectations of public market analysts and investors. If this occurs, the
trading price of our securities could significantly decline. The market price of
our securities could also fall if the holders of our securities sell substantial
amounts of our securities, including securities issued upon the exercise of
outstanding options and warrants and upon conversion of the outstanding Series A
Preferred Stock. Some of our security holders are entitled to certain
registration rights. The exercise of those rights could adversely affect the
market price of our securities.
For these and other reasons, the market price of our common stock has
been and is likely to be volatile. No assurance can be given that investors will
be able to sell our securities at or above the offering price.
OUR BUSINESS COULD BE AFFECTED BY YEAR 2000 ISSUES.
Year 2000 issues refer generally to the problems that some software may
have in determining the correct century. For example, software with
date-sensitive functions that is not Year 2000 compliant may not be able to
distinguish whether "00" in a year refers to 1900 or 2000, which may result in
failures or the creation of erroneous results.
We rely upon software in our information systems and manufacturing
equipment, most of which was installed and written within the past three years.
We have completed an inventory of our critical control systems, computers, and
application software. We are not currently aware of any significant operational
issues or costs associated with preparing our internal information technology
and non-information technology systems for Year 2000 issues. However, we may
experience significant unanticipated problems and costs caused by undetected
errors or defects. In addition, we may experience significant unanticipated
problems and costs caused by external Year 2000 compliance failures that affect
our suppliers, customers or industry and commerce generally. These could
seriously harm our business, results of operations and financial condition.
10.
<PAGE> 12
USE OF PROCEEDS
We will not receive any proceeds from the sale of common stock by the
selling stockholder.
SELLING STOCKHOLDER
The following table sets forth the name of the selling stockholder, the
number of shares of common stock owned by the selling stockholder as of the date
of this Prospectus and the number of shares of common stock which may be offered
pursuant to this Prospectus. The selling stockholder may offer all, some or none
of its shares of common stock.
<TABLE>
<CAPTION>
SHARES BENEFICIALLY
OWNED PRIOR TO SHARES BEING SHARES BENEFICIALLY OWNED
NAME OFFERING(1)(2) OFFERED AFTER OFFERING (2)
- ------------------------- ------------------- ------------ -------------------------
NUMBER PERCENT NUMBER PERCENT
------- ------- ------ -------
<S> <C> <C> <C> <C> <C>
VFT Special Ventures LTD 195,000 * 195,000 -- --
</TABLE>
- ----------------
* Less than 1%.
(1) Beneficial ownership is determined in accordance with the rules of the
Securities and Exchange Commission and generally includes voting or
investment power with respect to securities. Shares of common stock
issuable upon exercise of options currently exercisable, or exercisable
within 60 days of the date of this Prospectus, are deemed outstanding for
computing the percentage of the person holding such securities but are not
outstanding for computing the percentage of any other person. Subject to
community property laws where applicable, the persons named in the above
table have sole voting and investment power with respect to all shares of
common stock shown as beneficially owned by them.
(2) Although the selling stockholder has not expressed a specific intention as
to the number of shares of common stock to be sold, the table shows the
beneficial ownership that would result if all shares being offered hereby
were sold. Percentage calculations are based upon approximately 14,477,105
shares of common stock outstanding as of December 29, 1999.
PLAN OF DISTRIBUTION
The Company is registering the shares of common stock (the "Shares")
offered by the selling stockholder hereunder. As used herein, "selling
stockholder" includes pledgees, donees and transferees selling shares received
from the selling stockholder after the date of this Prospectus. All costs,
expenses and fees in connection with the registration of the Shares offered
hereby will be borne by the Company. Brokerage commissions and similar selling
expenses, if any, attributable to the sale of Shares will be borne by the
selling shareholder.
Sales of Shares may be effected by the selling shareholder from time to
time in one or more types of transactions (which may involve one or more blocked
transactions) on The NASDAQ National Market, in privately negotiated
transactions, through put or call options transactions, through short sales of
Shares, or a combination of such methods of sale, at market prices prevailing at
the time of sale or at negotiated prices. Such transactions may or may not
involve brokers or dealers.
The selling stockholder may effect such transactions by selling the
Shares to or through broker-dealers, which may act as agents or principals. Such
broker-dealers may receive compensation in the form of discounts, concession or
commissions from the selling stockholder and/or the purchasers of the Shares for
whom such broker-dealers may act as agent or to whom they sell as principal, or
both (which compensation to a particular broker-dealer might be in excess of
customary commission).
At any time a particular offer of Shares is made, the specific Shares
of common stock to be sold, the name of the selling stockholder, the respective
purchase prices and public offering prices, the names of any agent, dealer or
underwriter, and any applicable commissions or discounts with respect to a
particular offer will be set forth in an accompanying Prospectus supplement or,
if appropriate, a post-effective amendment to the registration statement of
which this Prospectus is a part.
11.
<PAGE> 13
The selling stockholder and any broker-dealers who act in connection
with the sale of Shares hereunder may be deemed to be "underwriters" as that
term is defined in the Securities Act of 1933 (the "Securities Act"), and any
commissions received by them and profit on any resale of the Shares as principal
might be deemed to be underwriting discounts and commissions under the
Securities Act.
Any or all of the sales or other transactions involving the Shares
described above, whether effected by the selling stockholder, any broker-dealer
or others, may be made pursuant to this Prospectus. In addition, any Shares that
qualify for sale pursuant to Rule 144 under the Act may be sold under Rule 144
rather than pursuant to this Prospectus.
In order to comply with the securities laws of certain states, if
applicable, the Shares may be sold in such jurisdictions only through registered
or licensed brokers or dealers. In addition, in certain states the Shares may
not be sold unless they have been registered or qualified for sale or an
exemption from registration or qualification requirements is available and is
complied with.
The Company will be permitted to suspend the use of the Prospectus
which is a part of such registration statement during certain periods of time
and under certain circumstances relating to pending corporate developments,
public filings with the Commission and similar events. The Company will pay all
expenses of such registration statement, provide to each registered holder
requesting to sell the Shares copies of such Prospectus, notify each registered
holder when such registration statement has become effective and take certain
other actions as are required to permit, subject to the foregoing, unrestricted
resales of such securities. A holder who sells such securities pursuant to such
registration statement generally will be required to be named as a selling
stockholder in the related Prospectus and to deliver a Prospectus to purchasers.
If a registration statement covering the Shares is not effective, such Shares
may not be sold or otherwise transferred except in accordance with the
provisions set forth under an exemption from registration under federal and
state securities laws.
DESCRIPTION OF CAPITAL STOCK
The Company's authorized capital stock consists of 25,000,000 shares of
common stock, $.001 par value per share, and 5,000,000 shares of preferred
stock, $.001 par value per share, of which 336,200 are designated Series A
Preferred Stock and 250,000 are designated Series B Junior Participating
Preferred Stock. As of December 29, 1999, there were approximately 280 record
holders of the Company's common stock.
COMMON STOCK
The holders of the Company's common stock are entitled to one vote for
each share held of record on all matters submitted to a vote of the
stockholders. The holders of common stock are not entitled to cumulative voting
rights with respect to the election of directors, and as a consequence, minority
stockholders will not be able to elect directors on the basis of their votes
alone. Subject to preferences that may be applicable to any then outstanding
shares of preferred stock, holders of common stock are entitled to receive
ratably such dividends as may be declared by the Board of Directors out of funds
legally available therefor. In the event of a liquidation, dissolution or
winding up of the Company, holders of the common stock are entitled to share
ratably in all assets remaining after payment of liabilities and the liquidation
preference of any then outstanding preferred stock. Holders of common stock have
no preemptive rights and no right to convert their common stock into any other
securities. There are no redemption or sinking fund provisions applicable to the
common stock. All outstanding shares of common stock are, and all shares of
common stock to be outstanding upon completion of this offering will be, fully
paid and nonassessable.
SHAREHOLDER RIGHTS PLAN
Each share of common stock has associated with it one right (a "Right")
to purchase one one-hundredth of a share of Series B Junior Participating
Preferred Stock (or in certain cases other securities) of the Company. The terms
of the Rights are set forth in a Rights Agreement (the "Rights Agreement") dated
as of January 23, 1998, between the Company and American Stock Transfer & Trust
Company, as Rights Agent. Prior to the occurrence of certain specified future
events, the rights will not be represented by separate certificates and will be
transferable with and only with the associated common stock.
12.
<PAGE> 14
Pursuant to the Rights Agreement, in the event that, among other
things, a third party acquires beneficial ownership of 15% or more of the
outstanding shares of the common stock, each holder of Rights will be entitled
to purchase securities of the Company having a market value equal to twice the
purchase price thereof. In addition, Rights held by an Acquiring Person (as
defined in the Rights Agreement) will become null and void, nontransferable and
nonexercisable.
Subject to certain limitations, the Company may redeem the Rights in
whole, but not in part, at a price of $.01 per Right. The Rights will expire on
January 23, 2008, unless earlier redeemed by the Company.
The Company's Shareholder Rights Plan may have the effect of
discouraging unsolicited takeover attempts.
The foregoing summary of certain terms of the Rights does not purport
to be complete and is subject to, and is qualified in its entirety by reference
to, the Rights Agreement, a copy of which is on file with the Commission.
PREFERRED STOCK
The Board of Directors of the Company is empowered, without approval of
the stockholders, to cause shares of preferred stock to be issued in one or more
series and to establish the number of shares to be included in each such series
and the rights, powers, preferences and limitations of each series. Because the
Board of Directors has the power to establish the preferences and rights of each
series, it may afford the holders of any series of preferred stock preferences,
powers and rights, voting or otherwise, senior to the rights of holders of
common stock or other series of preferred stock. The issuance of the preferred
stock could have the effect of delaying or preventing a change in control of the
Company. The Board of Directors has no present plans to issue any of the
preferred stock, other than the Series A Preferred Stock which was issued by the
Company in October 1997. In connection with the Company's Shareholder Rights
Plan, the Company would be obligated to issue shares of Series B Junior
Participating Preferred Stock if such rights become exercisable.
The Series A Preferred Stock constitutes a single series of the
preferred stock of the Company consisting of 336,200 shares. All outstanding
shares of Series A Preferred Stock are duly authorized, validly issued, fully
paid and nonassessable, and the holders thereof will not have any preemptive
rights in connection therewith. The Series A Preferred Stock is not subject to
any sinking fund or other obligation of the Company to redeem or retire such
shares except as described below. Any Series A Preferred Stock converted,
redeemed or otherwise acquired by the Company will, upon cancellation of such
shares, have the status of authorized but unissued preferred stock subject to
issuance by the Board of Directors as shares of preferred stock of any one or
more other series but not as shares of Series A Preferred Stock.
The material rights, powers, preferences and limitations of the Series
A Preferred Stock are set forth below:
o DIVIDENDS. Holders of the Series A Preferred Stock are each
entitled to receive (and the Company is required to pay), when,
as and if declared by the Board of Directors, out of the funds of
the Company legally available therefor, a semi-annual dividend
payable in common stock (based upon the common stock's then fair
market value) or cash or a combination of common stock and cash,
at the Company's option, at an annual rate equal to (i) $4.00 per
share to the extent the dividend is paid in cash and (ii) $4.50
per share to the extent the dividend is paid in common stock. If
dividends are paid in cash it could require the Company to pay
$1,344,000 annually. If dividends are paid in common stock it
will be dilutive to the holders of common stock.
o CONVERSION RIGHTS. Each share of Series A Preferred Stock is
convertible at the option of the holder thereof at any time,
unless previously redeemed, into that number of shares of common
stock equal to $50.00 divided by a conversion price per share
equal to $15.00, subject to certain adjustments.
13.
<PAGE> 15
o LIQUIDATION RIGHTS. In the event of any liquidation, dissolution
or winding up of the Company, whether voluntary or involuntary,
the holders of shares of Series A Preferred Stock are each
entitled to receive out of assets of the Company available for
distribution to stockholders, whether from capital surplus or
earnings, before any distribution of assets is made to holders of
common stock and of any other class of stock of the Company
ranking junior to the Series A Preferred Stock, liquidating
distributions equal to the greater of (i) $50.00 per share of
such Series A Preferred Stock or (ii) the amount per share of
such Series A Preferred Stock that would have been payable had
each such share been converted into common stock immediately
prior to such event of liquidation, dissolution or winding up,
plus, in either case, accrued and unpaid dividends.
o REDEMPTION RIGHTS. Under certain circumstances, the shares of
Series A Preferred Stock are redeemable at the option of the
Company, in whole or in part, at any time or from time to time
out of funds legally available therefor, at $50.00 per share,
plus in each case an amount equal to accrued and unpaid
dividends, if any, to (and including) the redemption date,
whether or not earned or declared (the "Redemption Price"). The
Redemption Price may be paid in shares of common stock or cash,
or in a combination of common stock and cash, at the Company's
option.
o REDEMPTION AT OPTION OF HOLDER UPON A FUNDAMENTAL CHANGE. If a
Fundamental Change (as defined in the Certificate of Designation
of the Series A Preferred Stock, a copy of which has previously
been filed with the Commission (the "Certificate of
Designation")) occurs, each holder of Series A Preferred Stock
shall have the right, at the holder's option, to require the
Company to redeem all of such holder's Series A Preferred Stock,
or any portion thereof that has an aggregate liquidation value
that is a multiple of $50.00, on the date selected by the Company
that is not less than 10 nor more than 20 days after the Final
Surrender Date (as defined in the Series A Certificate of
Designation), at a price per share equal to the Redemption Price.
The Company may, at its option, pay all or any portion of the
Redemption Price upon a Fundamental Change in shares of common
stock of the Company or any successor corporation.
o VOTING RIGHTS. The holders of Series A Preferred Stock have
voting rights on all matters subject to a vote of holders of
common stock on an as-converted basis. If the Series A Preferred
Stock has not been redeemed prior to October 8, 2003, the Board
of Directors of the Company shall be increased and the holders of
Series A Preferred Stock that have not been so redeemed shall be
entitled, voting as a separate class, to elect additional
directors to the Board of Directors of the Company so that the
number of additional directors to be elected by the Series A
Preferred Stock shall constitute not less than 20% (rounded to
the nearest whole number) of the total number of directors after
giving effect to such increase. Such right shall exist until the
Series A Preferred Stock is redeemed.
OUTSTANDING REGISTRATION RIGHTS
Pursuant to existing agreements between the Company and certain of its
stockholders, the holders (or their permitted transferees) of approximately
5,091,625 shares of common stock and 96,641 shares of common stock issuable upon
the exercise of warrants to purchase common stock (the "Holders") are entitled
to certain rights with respect to the registration of such shares under the
Securities Act. If the Company proposes to register any of its securities under
the Securities Act, either for its own account or for the account of other
security holders, the Holders are entitled to notice of the registration and are
entitled to include, at the Company's expense, such shares therein, provided,
among other conditions, that the underwriters have the right to limit the number
of such shares included in the registration. In addition, certain of the Holders
may require the Company, on not more than two occasions, to file a registration
statement under the Securities Act, at the Company's expense, with respect to
their shares of common stock, and the Company is required to use its best
efforts to effect the registration, subject to certain conditions and
limitations. However, the Holders may not require the Company to file any such
registration statement within 90 days of the effective date of any prior
registration statement covering the Company's common stock, and the Company may
defer the filing of such registration statement for up to 120 days. Further,
certain of the Holders may require the Company, at its expense, to register
their shares of common stock on a Form S-3, subject to certain conditions and
limitations.
14.
<PAGE> 16
DELAWARE ANTI-TAKEOVER LAW AND CHARTER PROVISIONS
The Company is subject to the provisions of Section 203 of the Delaware
General Corporation Law ("Delaware Law"), an anti-takeover law. In general, the
statute prohibits a publicly held Delaware corporation from engaging in a
"business combination" with an "interested stockholder" for a period of three
years after the date of the transaction in which the person became an interested
stockholder, unless the business combination is approved in a prescribed manner.
For purposes of Section 203, a "business combination" includes a merger, asset
sale or other transaction resulting in a financial benefit to the interested
stockholder, and an "interested stockholder" is a person who, together with
affiliates and associates, owns (or within three years prior, did own) 15% or
more of the corporation's voting stock.
The Company's Certificate of Incorporation (the "Certificate of
Incorporation") also requires that any action required or permitted to be taken
by stockholders of the Company must be effected at a duly called annual or
special meeting of the stockholders and may not be effected by a consent in
writing; provided, however, that the holders of Series A Preferred Stock may,
until such time as the Series A Preferred Stock is registered pursuant to any
effective registration statement under Section 12 of the Securities Exchange Act
of 1934, as amended, act by written consent so long as such action by written
consent is solely being taken by, and is only applicable to, the holders of
Series A Preferred Stock. Special meetings of the stockholders of the Company
may be called only by the Board of Directors, the Chairman of the Board or the
Chief Executive Officer. The Certificate of Incorporation also provides that the
authorized number of Directors may be changed only by resolution of the Board of
Directors, and that Directors can only be removed for cause by a majority vote
of the stockholders. In addition, the Certificate of Incorporation provides for
the classification of the Board of Directors into three classes, only one of
which shall be elected at any given annual meeting. These provisions may have
the effect of delaying, deterring or preventing a change in control of the
Company, depressing the market price of common stock or discouraging hostile
takeover bids in which stockholders of the Company could receive a premium for
their shares of common stock.
LIMITATION ON DIRECTORS' LIABILITY
The Certificate of Incorporation limits the liability of the Company's
directors to the Company or its stockholders (in their capacity as directors but
not in their capacity as officers) to the fullest extent permitted by Delaware
law. Specifically, directors of the Company will not be personally liable for
monetary damages for breach of a director's fiduciary duty as a director, except
for liability (i) for any breach of the director's duty of loyalty to the
Company or its stockholders, (ii) for acts or omissions not in good faith or
which involve intentional misconduct or a knowing violation of the law, (iii)
for unlawful payments of dividends or unlawful stock repurchases or redemptions
as provided in Section 174 of the Delaware General Corporation Law or (iv) for
any transaction from which the director derived an improper personal benefit.
The inclusion of this provision in the Certificate of Incorporation may
have the effect of reducing the likelihood of derivative litigation against
directors and may discourage or deter stockholders or management from bringing a
lawsuit against directors for breach of their duty of care, even though such an
action, if successful, might otherwise have benefited the Company and its
stockholders.
TRANSFER AGENT AND REGISTRAR
American Stock Transfer & Trust Company acts as transfer agent and
registrar for the common stock and for the Series A Preferred Stock.
LEGAL MATTERS
The validity of the shares of common stock offered hereby will be
passed upon for BOLDER Technologies Corporation by Cooley Godward LLP, Boulder,
Colorado.
15.
<PAGE> 17
EXPERTS
The financial statements of the Company incorporated by reference in
this Prospectus and Registration Statement have been audited by Arthur Andersen
LLP, independent public accountants, as indicated in their reports with respect
thereto, and are included herein in reliance upon the authority of said firm as
experts in accounting and auditing in giving said reports.
16.
<PAGE> 18
NO DEALER, SALES PERSON OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS NOT CONTAINED IN THIS PROSPECTUS,
AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATION MUST NOT BE
RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, ANY SECURITY
OTHER THAN THE NOTES OR CONVERSION SHARES OFFERED HEREBY, NOR DOES IT CONSTITUTE
AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE NOTES OR
CONVERSION SHARES TO ANYONE IN ANY JURISDICTION WHERE, OR TO ANY PERSON TO WHOM,
IT WOULD BE UNLAWFUL TO MAKE SUCH AN OFFER OR SOLICITATION. NEITHER THE DELIVERY
OF THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL UNDER ANY CIRCUMSTANCES,
CREATE AN IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE
COMPANY SINCE THE DATE HEREOF OR IMPLY THAT INFORMATION CONTAINED HEREIN IS
CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE.
195,000 SHARES
BOLDER TECHNOLOGIES CORPORATION
COMMON STOCK
--------------------
PROSPECTUS
--------------------
, 2000
<PAGE> 19
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The following table sets forth all expenses, other than the
underwriting discounts and commissions, payable by the Registrant in connection
with the sale of the common stock being registered. All the amounts shown are
estimates except for the registration fee.
<TABLE>
<S> <C>
Registration fee........................... $ 713.20
Printing and engraving expenses............ 2,000.00
Legal fees and expenses.................... 7,500.00
Accounting Fees and Expenses............... 2,000.00
Miscellaneous.............................. 2,786.80
-----------
Total................................... $ 15,000.00
</TABLE>
ITEM 15. INDEMNIFICATION OF OFFICERS AND DIRECTORS.
Under Section 145 of the Delaware General Corporation Law, the
Registrant has broad powers to indemnify its Directors and officers against
liabilities they may incur in such capacities, including liabilities under the
Securities Act.
The Registrant's Bylaws provide that the Registrant will indemnify its
directors and executive officers and may indemnify its other officers, employees
and agents to the fullest extent permitted by Delaware law. The Registrant is
also empowered under its Bylaws to enter into indemnification agreements with
its directors and officers and to purchase insurance on behalf of any person it
is required or permitted to indemnify.
In addition, the Registrant's Restated Certificate of Incorporation
provides that to the fullest extent permitted by Delaware law, the Registrant's
directors will not be liable for monetary damages for breach of the directors'
fiduciary duty of care to the Registrant and its stockholders. This provision in
the Restated Certificate of Incorporation does not eliminate the duty of care,
and in appropriate circumstances equitable remedies such as an injunction or
other forms of non-monetary relief would remain available under Delaware law.
Each director will continue to be subject to liability for breach of the
director's duty of loyalty to the Registrant, for acts or omissions not in good
faith or involving intentional misconduct, for knowing violations of law, for
any transaction from which the director derived an improper personal benefit,
for improper transactions between the director and the Registrant and for
improper distributions to stockholders and loans to directors and officers. This
provision also does not affect a director's responsibilities under any other
laws, such as the federal securities law or state or federal environmental laws.
The Registrant has entered into indemnification agreements with each of
its directors and officers under which the Registrant has indemnified each of
them against expenses and losses incurred for claims brought against them by
reason of their being a director or officer of the Registrant, and the
Registrant maintains directors' and officers' liability insurance.
There is no pending litigation or proceeding involving a director or
officer of the Registrant as to which indemnification is being sought, nor is
the Registrant aware of any pending or threatened litigation that may result in
claims for indemnification by any director or officer.
At present, there is no pending litigation or proceeding involving a
director or officer of the Registrant as to which indemnification is being
sought nor is the Registrant aware of any threatened litigation that may result
in claims for indemnification by any officer or director.
II-1
<PAGE> 20
The Registrant has an insurance policy covering the officers and
directors of the Registrant with respect to certain liabilities, including
liabilities arising under the Securities Act or otherwise.
ITEM 16. EXHIBITS.
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION OF DOCUMENT
<S> <C>
4.1* Amended and Restated Certificate of Incorporation of the
Registrant.
4.2** Certificate of Designation of the Series A Preferred Stock of
the Registrant.
4.3** Amendment to Certificate of Designation of the Series A
Preferred Stock of Registrant.
4.4*** Certificate of Designation of the Series B Junior
Participating Preferred Stock of the Registrant.
4.5* Amended and Restated Bylaws of the Registrant.
4.6** Amendment to the Amended and Restated Bylaws of the
Registrant.
4.7** Specimen stock certificate representing shares of Series A
Preferred Stock of the Registrant.
4.8* Specimen stock certificate representing shares of Common Stock
of the Registrant.
4.9*** Rights Agreement between the Registrant and American Stock
Transfer & Trust Company, dated January 23, 1998.
4.10*** Form of Rights Certificate.
4.11 Warrant to purchase 195,000 shares of Common Stock of the
Registrant
5.1 Opinion of Cooley Godward LLP.
23.1 Consent of Arthur Anderson LLP.
23.2 Consent of Cooley Godward LLP (included in Exhibit 5.1).
24.1 Power of Attorney (see signature page hereto).
</TABLE>
- ----------------
* Previously filed as an exhibit to the Registrant's Registration
Statement on Form SB-2 (Registration No. 333-2500-D) and incorporated
herein by reference.
** Previously filed as an exhibit to the Registrant's Registration
Statement on Form S-3 (Registration No. 333-41625) and incorporated
herein by reference.
*** Previously filed as an exhibit to the Registrant's January 23, 1998
Form 8-K and incorporated herein by reference.
II-2
<PAGE> 21
ITEM 17. UNDERTAKINGS.
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are
being made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by Section
10(a)(3) of the Securities Act;
(ii) To reflect in the prospectus any facts or events
arising after the effective date of the registration statement
(or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental
change in the information set forth in the registration
statement.
(iii) To include any material information with
respect to the plan of distribution not previously disclosed
in the registration statement or any material change to such
information in the registration statement.
Provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) of
this section do not apply if the registration statement is on Form S-3,
Form S-8 or Form F-3, and the information required to be included in a
post-effective amendment by those paragraphs is contained in periodic
reports filed with or furnished to the Commission by the Registrant
pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
(the "Exchange Act") that are incorporated by reference in the
registration statement.
(2) That, for the purpose of determining any liability under
the Securities Act, each post-effective amendment that contains a form
of prospectus shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide
offering thereof.
(3) To remove registration by means of a post-effective
amendment any of the securities being registered which remain unsold at
the termination of the offering.
(b) The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act, each filing of the
registrant's annual report pursuant to Section 13(a) or 15(d) of the Exchange
Act that is incorporated by reference in the registration statement shall be
deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities under the Securities Act
of 1933 may be permitted to directors, officers, and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriated
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.
(d) The undersigned registrant hereby undertakes that:
(1) For purposes of determining any liability under the
Securities Act of 1933, the information omitted from the form of
prospectus filed as part of this registration statement in reliance
upon Rule 430A and contained in a form of prospectus filed by the
registrant pursuant to Rule 424(b)(1) or (4) or 497(h)
under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.
(2) For the purpose of determining any liability under the
Securities Act of 1933, each post-effective amendment that contains a
form of prospectus shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide
offering thereof.
II-3
<PAGE> 22
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
Registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Golden, State of Colorado, on December 31, 1999.
BOLDER Technologies Corporation
By /s/ Joseph F. Fojtasek
------------------------------------
Joseph F. Fojtasek
Chief Financial Officer
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature
appears below constitutes and appoints Daniel S. Lankford and Joseph F.
Fojtasek, his true and lawful attorney-in-fact and agent, each acting alone,
with full power of substitution and resubstitution, for him and in his name,
place and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to this registration statement, and to
sign any registration statement for the same offering covered by this
registration statement that is to be effective upon filing pursuant to Rule
462(b) and all post-effective amendments thereto, and to file the same, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and
agent, full power and authority to do and perform each and every act and thing
requisite and necessary to be done in connection therewith, as fully to all
intents and purposes as he might or could do in person, hereby ratifying and
confirming all that said attorney-in-fact and agent, or his substitute, may
lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as amended,
this Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
<S> <C> <C>
/s/ Roger F. Warren
- ----------------------- Chief Executive Officer, President and December 31, 1999
Roger F. Warren Director (Principal Executive Officer)
/s/ Joseph F. Fojtasek
- ----------------------- Chief Financial Officer and Vice President - December 31, 1999
Joseph F. Fojtasek Finance and Administration, Treasurer
(Principal Financial Officer)
/s/ Daniel S. Lankford Chairman of the Board December 31, 1999
- -----------------------
Daniel S. Lankford
/s/ William D. Connor Director December 31, 1999
- -----------------------
William D. Connor
/s/ Donovan B. Hicks Director December 31, 1999
- -----------------------
Donovan B. Hicks
/s/ David L. Riegel Director December 31, 1999
- -----------------------
David L. Riegel
/s/ Carl S. Stutts Director December 31, 1999
- -----------------------
Carl S. Stutts
/s/ Wilmer R. Bottoms Director December 31, 1999
- -----------------------
Wilmer R. Bottoms
</TABLE>
II-4
<PAGE> 23
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION OF DOCUMENT PAGE
<S> <C> <C>
4.1* Amended and Restated Certificate of Incorporation of the Registrant. --
4.2** Certificate of Designation of the Series A Preferred Stock of the
Registrant. --
4.3** Amendment to Certificate of Designation of the Series A Preferred Stock
of Registrant. --
4.4*** Certificate of Designation of the Series B Junior Participating
Preferred Stock of the Registrant. --
4.5* Amended and Restated Bylaws of the Registrant. --
4.6** Amendment to the Amended and Restated Bylaws of the
Registrant. --
4.7** Specimen stock certificate representing shares of Series A
Preferred Stock of the Registrant. --
4.8* Specimen stock certificate representing shares of Common Stock
of the Registrant. --
4.9*** Rights Agreement between the Registrant and American Stock
Transfer & Trust Company, dated January 23, 1998. --
4.10*** Form of Rights Certificate. --
4.11 Warrant to purchase 195,000 shares of Common Stock of the
Registrant A-1
5.1 Opinion of Cooley Godward LLP. B-1
23.1 Consent of Arthur Anderson LLP. F-1
23.2 Consent of Cooley Godward LLP (included in Exhibit 5.1). --
24.1 Power of Attorney (see signature page hereto). --
</TABLE>
- ----------------
* Previously filed as an exhibit to the Registrant's Registration
Statement on Form SB-2 (Registration No. 333-2500-D) and incorporated
herein by reference.
** Previously filed as an exhibit to the Registrant's Registration
Statement on Form S-3 (Registration No. 333-41625) and incorporated
herein by reference.
*** Previously filed as an exhibit to the Registrant's January 23, 1998
Form 8-K and incorporated herein by reference
<PAGE> 1
EXHIBIT 4.11
THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
BOLDER TECHNOLOGIES CORPORATION
WARRANT TO PURCHASE COMMON STOCK
WCS No. 2 December 16, 1999
Effective as of September 24, 1999
VOID AFTER SEPTEMBER 24, 2004
THIS CERTIFIES THAT, for value received, VFT Special Ventures LTD, with
its principal office at Parkview Tower, 1150 1st Ave, Suite 600, King of
Prussia, PA 19406, or its assigns (the "Holder"), is entitled to subscribe for
and purchase at the Exercise Price (defined below) from BOLDER Technologies
Corporation, a Delaware corporation, with its principal office at 4403 Table
Mountain Drive, Golden, Colorado 80403 (the "Company") up to one hundred and
ninety five thousand (195,000) shares of the Common Stock of the Company (the
"Common Stock").
1. DEFINITIONS. As used herein, the following terms shall have
the following respective meanings:
(a) "EXERCISE PERIOD" shall mean the period commencing
with the date hereof and ending five years from the date hereof, unless sooner
terminated as provided below.
(b) "EXERCISE PRICE" shall mean $8.00 per share, subject
to adjustment pursuant to Section 5 below.
(c) "EXERCISE SHARES" shall mean the shares of the
Company's Common Stock issuable upon exercise of this Warrant.
2. EXERCISE OF WARRANT. The rights represented by this Warrant
may be exercised in whole or in part at any time during the Exercise Period, by
delivery of the following to the Company at its address set forth above (or at
such other address as it may designate by notice in writing to the Holder):
(i) An executed Notice of Exercise in the form attached
hereto;
(ii) Payment of the Exercise Price either (i) in cash or
by check, or (ii) by cancellation of indebtedness; and
(iii) This Warrant.
A-1
<PAGE> 2
Upon the exercise of the rights represented by this Warrant, a
certificate or certificates for the Exercise Shares so purchased, registered in
the name of the Holder or persons affiliated with the Holder, if the Holder so
designates, shall be issued and delivered to the Holder within a reasonable time
after the rights represented by this Warrant shall have been so exercised.
The person in whose name any certificate or certificates for Exercise
Shares are to be issued upon exercise of this Warrant shall be deemed to have
become the holder of record of such shares on the date on which this Warrant was
surrendered and payment of the Exercise Price was made, irrespective of the date
of delivery of such certificate or certificates, except that, if the date of
such surrender and payment is a date when the stock transfer books of the
Company are closed, such person shall be deemed to have become the holder of
such shares at the close of business on the next succeeding date on which the
stock transfer books are open.
3. COVENANTS OF THE COMPANY.
(a) COVENANTS AS TO EXERCISE SHARES. The Company
covenants and agrees that all Exercise Shares that may be issued upon the
exercise of the rights represented by this Warrant will, upon issuance, be
validly issued and outstanding, fully paid and nonassessable, and free from all
taxes, liens and charges with respect to the issuance thereof. The Company
further covenants and agrees that the Company will at all times during the
Exercise Period, have authorized and reserved, free from preemptive rights, a
sufficient number of shares of its Common Stock to provide for the exercise of
the rights represented by this Warrant. If at any time during the Exercise
Period the number of authorized but unissued shares of Common Stock shall not be
sufficient to permit exercise of this Warrant, the Company will take such
corporate action as may, in the opinion of its counsel, be necessary to increase
its authorized but unissued shares of Common Stock to such number of shares as
shall be sufficient for such purposes.
(b) NO IMPAIRMENT. Except and to the extent as waived or
consented to by the Holder, the Company will not, by amendment of its Articles
of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by the Company, but will at all
times in good faith assist in the carrying out of all the provisions of this
Warrant and in the taking of all such action as may be necessary or appropriate
in order to protect the exercise rights of the Holder against impairment.
(c) NOTICES OF RECORD DATE. In the event of any taking by
the Company of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any
dividend (other than a cash dividend which is the same as cash dividends paid in
previous quarters) or other distribution, the Company shall mail to the Holder,
at least ten (10) days prior to the date specified herein, a notice specifying
the date on which any such record is to be taken for the purpose of such
dividend or distribution.
A-2
<PAGE> 3
4. REPRESENTATIONS OF HOLDER.
(a) ACQUISITION OF WARRANT FOR PERSONAL ACCOUNT;
ACCREDITED INVESTOR. The Holder represents and warrants that it is acquiring the
Warrant solely for its account for investment and not with a view to or for sale
or distribution of said Warrant or any part thereof. The Holder also represents
that the entire legal and beneficial interests of the Warrant and Exercise
Shares the Holder is acquiring is being acquired for, and will be held for, its
account only. The Holder further represents that it has such knowledge and
experience in financial and business matters that it is capable of evaluating
the merits and risk of its investment in the Warrant. The Holder is an
"accredited investor" as such term is defined in Rule 501 under the Securities
Act of 1933, as amended (the "Act").
(b) SECURITIES ARE NOT REGISTERED.
(i) The Holder understands that the Warrant and
the Exercise Shares have not been registered under the Act on the basis that no
distribution or public offering of the stock of the Company is to be effected.
The Holder realizes that the basis for the exemption may not be present if,
notwithstanding its representations, the Holder has a present intention of
acquiring the securities for a fixed or determinable period in the future,
selling (in connection with a distribution or otherwise), granting any
participation in, or otherwise distributing the securities. The Holder has no
such present intention.
(ii) The Holder recognizes that the Warrant and
the Exercise Shares must be held indefinitely unless they are subsequently
registered under the Act or an exemption from such registration is available.
The Holder recognizes that the Company has no obligation to register the Warrant
or the Exercise Shares of the Company, or to comply with any exemption from such
registration.
(iii) The Holder is aware that neither the Warrant
nor the Exercise Shares may be sold pursuant to Rule 144 adopted under the Act
unless certain conditions are met, including, among other things, the existence
of a public market for the shares, the availability of certain current public
information about the Company, the resale following the required holding period
under Rule 144 and the number of shares being sold during any three month period
not exceeding specified limitations. Holder is aware that the conditions for
resale set forth in Rule 144 have not been satisfied and that the Company
presently has no plans to satisfy these conditions in the foreseeable future.
(c) DISPOSITION OF WARRANT AND EXERCISE SHARES.
(i) The Holder further agrees not to make any
disposition of all or any part of the Warrant or Exercise Shares in any event
unless and until:
(1) The Company shall have received a
letter secured by the Holder from the Securities and Exchange Commission stating
that no action will be recommended to the Commission with respect to the
proposed disposition; or
A-3
<PAGE> 4
(2) There is then in effect a
registration statement under the Act covering such proposed disposition and such
disposition is made in accordance with said registration statement; or
(3) The Holder shall have notified the
Company of the proposed disposition and shall have furnished the Company with a
detailed statement of the circumstances surrounding the proposed disposition,
and if reasonably requested by the Company, the Holder shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, for
the Holder to the effect that such disposition will not require registration of
such Warrant or Exercise Shares under the Act or any applicable state securities
laws.
(ii) The Holder understands and agrees that all
certificates evidencing the shares to be issued to the Holder may bear the
following legend:
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE
ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
(iii) The Holder hereby agrees not to sell or
otherwise transfer or dispose of all or any part of this Warrant or the Exercise
Shares during a period specified by the representative of the underwriters of
Common Stock (not to exceed one hundred eighty (180) days) following the
effective date of the registration statement of the Company filed under the Act.
Holder further agrees that the Company may impose stop-transfer instructions
with respect to securities subject to the foregoing restrictions until the end
of such period.
5. ADJUSTMENT OF EXERCISE PRICE. In the event of changes in the
outstanding Common Stock of the Company by reason of stock dividends, split-ups,
recapitalizations, reclassifications, combinations or exchanges of shares,
separations, reorganizations, liquidations, or the like, the number and class of
shares available under the Warrant in the aggregate and the Exercise Price shall
be correspondingly adjusted to give the Holder of the Warrant, on exercise for
the same aggregate Exercise Price, the total number, class, and kind of shares
as the Holder would have owned had the Warrant been exercised prior to the event
and had the Holder continued to hold such shares until after the event requiring
adjustment; provided, however, that such adjustment shall not be made with
respect to, and this Warrant shall terminate if not exercised prior to, the
events set forth in Section 7 below. The form of this Warrant need not be
changed because of any adjustment in the number of Exercise Shares subject to
this Warrant.
6. FRACTIONAL SHARES. No fractional shares shall be issued upon
the exercise of this Warrant as a consequence of any adjustment pursuant hereto.
All Exercise Shares (including fractions) issuable upon exercise of this Warrant
may be aggregated for purposes of determining whether the exercise would result
in the issuance of any fractional share. If, after aggregation,
A-4
<PAGE> 5
the exercise would result in the issuance of a fractional share, the Company
shall, in lieu of issuance of any fractional share, pay the Holder otherwise
entitled to such fraction a sum in cash equal to the product resulting from
multiplying the then current Per Share Market Value of an Exercise Share by such
fraction.
7. EARLY TERMINATION. In the event of, at any time during the
Exercise Period, any capital reorganization, or any reclassification of the
capital stock of the Company (other than a change in par value or from par value
to no par value or no par value to par value or as a result of a stock dividend
or subdivision, split-up or combination of shares), or the consolidation or
merger of the Company with or into another corporation (other than a merger
solely to effect a reincorporation of the Company into another state), or the
sale or other disposition of all or substantially all the properties and assets
of the Company in its entirety to any other person, the Company shall provide to
the Holder twenty (20) days advance written notice of such reorganization,
reclassification, consolidation, merger or sale or other disposition of the
Company's assets, and this Warrant shall terminate unless exercised prior to the
occurrence of such reorganization, reclassification, consolidation, merger or
sale or other disposition of the Company's assets.
8. COMPANY CALL RIGHT. This Warrant may be called in whole or in
part at the option of the Company from time to time by delivering written notice
to the Holder as long as (a) the Per Share Market Value of the Common Stock has
exceeded $15.00 within five (5) business days of the delivery of such written
notice, and (b) the Company has a sufficient number of authorized shares of
Common Stock reserved for issuance upon full exercise of the outstanding
Warrant. The Warrant will expire unless exercised by the Holder within thirty
(30) days of the delivery to the Holder of the written call notice. For purposes
of this Warrant, "Per Share Market Value" of Common Stock means on any
particular date (a) the last reported sale price of Common Stock on The NASDAQ
National Market, or any similar system of automated dissemination of quotations
of securities prices then in common use, if so quoted, or (b) if not quoted as
described in clause (a), the mean between the high bid and low asked quotations
for Common Stock as reported by the National Quotation Bureau Incorporated if at
least two securities dealers have inserted both bid and asked quotations for the
Common Stock on at least 5 of the ten preceding days, or (c) if there is no
public market for the Common Stock, the value determined by mutual agreement of
the Company and the Holder, and if the Company and the Holder are unable to so
agree, by an investment banker of national reputation selected by the Holder and
reasonably acceptable to the Company.
9. NO STOCKHOLDER RIGHTS. This Warrant in and of itself shall not
entitle the Holder to any voting rights or other rights as a stockholder of the
Company.
10. TRANSFER OF WARRANT. Subject to applicable laws, the
restriction on transfer set forth on the first page of this Warrant, this
Warrant and all rights hereunder are transferable, by the Holder in person or by
duly authorized attorney, upon delivery of this Warrant and the form of
assignment attached hereto to any transferee designated by Holder. The
transferee shall sign an investment letter in form and substance satisfactory to
the Company.
A-5
<PAGE> 6
11. LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. If this Warrant
is lost, stolen, mutilated or destroyed, the Company may, on such terms as to
indemnity or otherwise as it may reasonably impose (which shall, in the case of
a mutilated Warrant, include the surrender thereof), issue a new Warrant of like
denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed.
Any such new Warrant shall constitute an original contractual obligation of the
Company, whether or not the allegedly lost, stolen, mutilated or destroyed
Warrant shall be at any time enforceable by anyone.
12. NOTICES, ETC. All notices and other communications required or
permitted hereunder shall be in writing and shall be sent by telex, telegram,
express mail or other form of rapid communications, if possible, and if not then
such notice or communication shall be mailed by first-class mail, postage
prepaid, addressed in each case to the party entitled thereto at the addresses
set forth on the cover page of this Warrant, or at such other address as one
party may furnish to the other in writing. Notice shall be deemed effective on
the date dispatched if by personal delivery, telecopy, telex or telegram, two
days after mailing if by express mail, or three days after mailing if by
first-class mail.
13. ACCEPTANCE. Receipt of this Warrant by the Holder shall
constitute acceptance of and agreement to all of the terms and conditions
contained herein.
14. GOVERNING LAW. This Warrant and all rights, obligations and
liabilities hereunder shall be governed by the laws of the State of Colorado.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
A-6
<PAGE> 7
IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its duly authorized officer on December 16, 1999, effective as of September
24, 1999.
BOLDER TECHNOLOGIES CORPORATION
By:
----------------------------
Name:
Title:
ATTEST:
- ---------------------------
Secretary
WARRANT TO PURCHASE COMMON STOCK
<PAGE> 8
NOTICE OF EXERCISE
TO: BOLDER TECHNOLOGIES CORPORATION
(1) The undersigned hereby elects to purchase ________ shares of
the Common Stock of BOLDER Technologies Corporation (the "Company") pursuant to
the terms of the attached Warrant, and tenders herewith payment of the exercise
price in full, together with all applicable transfer taxes, if any.
(2) Please issue a certificate or certificates representing said
shares of Common Stock in the name of the undersigned or in such other name as
is specified below:
------------------------
(Name)
------------------------
------------------------
(Address)
(3) The undersigned represents that (i) the aforesaid shares of
Common Stock are being acquired for the account of the undersigned for
investment and not with a view to, or for resale in connection with, the
distribution thereof and that the undersigned has no present intention of
distributing or reselling such shares; (ii) the undersigned is aware of the
Company's business affairs and financial condition and has acquired sufficient
information about the Company to reach an informed and knowledgeable decision
regarding its investment in the Company; (iii) the undersigned is experienced in
making investments of this type and has such knowledge and background in
financial and business matters that the undersigned is capable of evaluating the
merits and risks of this investment and protecting the undersigned's own
interests; (iv) the undersigned understands that the shares of Common Stock
issuable upon exercise of this Warrant have not been registered under the
Securities Act of 1933, as amended (the "Securities Act"), by reason of a
specific exemption from the registration provisions of the Securities Act, which
exemption depends upon, among other things, the bona fide nature of the
investment intent as expressed herein, and, because such securities have not
been registered under the Securities Act, they must be held indefinitely unless
subsequently registered under the Securities Act or an exemption from such
registration is available; (v) the undersigned is aware that the aforesaid
shares of Common Stock may not be sold pursuant to Rule 144 adopted under the
Securities Act unless certain conditions are met and until the undersigned has
held the shares for the number of years prescribed by Rule 144, that among the
conditions for use of the Rule is the availability of current information to the
public about the Company and the Company has not made such information available
and has no present plans to do so; and (vi) the undersigned agrees not to make
any disposition of all or any part of the aforesaid shares of Common Stock
unless and until there is then in effect a registration statement under the
Securities Act covering such proposed disposition and such disposition is made
in accordance with said registration statement, or the undersigned has provided
the Company with an opinion of counsel satisfactory to the Company, stating that
such registration is not required.
- ------------------------ -----------------------------------
(Date) (Signature)
-----------------------------------
(Print name)
<PAGE> 9
ASSIGNMENT FORM
(To assign the foregoing Warrant, execute
this form and supply required information.
Do not use this form to purchase shares.)
FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to
Name:
--------------------------------------------------------------------------
(Please Print)
Address:
-----------------------------------------------------------------------
(Please Print)
Dated:
--------------------
Holder's
Signature:
-----------------------------------
Holder's
Address:
-------------------------------------
NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatever. Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Warrant.
<PAGE> 1
EXHIBIT 5.1
[Letterhead of Cooley Godward LLP]
January 4, 2000
BOLDER Technologies Corporation
4403 Table Mountain Parkway
Golden, Colorado 80403
Ladies and Gentlemen:
You have requested our opinion with respect to certain matters in connection
with the filing by BOLDER Technologies Corporation (the "Company") of a
Registration Statement on Form S-3 (the "Registration Statement") with the
Securities and Exchange Commission covering the registration of up to 195,000
shares of the Company's Common Stock, $.01 par value (the "Warrant Shares")
issuable upon exercise of the Warrant, dated December 16, 1999 (the "Warrant"),
issued by the Company to the selling stockholder named in the Registration
Statement (the "Selling Shareholder").
In connection with this opinion, we have examined the Registration Statement and
related Prospectus, the Company's Certificate of Incorporation and Bylaws, as
amended to date, and such other documents, records, certificates, memoranda and
other instruments as we deem necessary as a basis for this opinion. We have
assumed the genuineness and authenticity of all documents submitted to us as
originals, the conformity to originals of all documents submitted to us as
copies thereof, and the due execution and delivery of all documents where due
execution and delivery are a prerequisite to the effectiveness thereof.
On the basis of the foregoing, and in reliance thereon, we are of the opinion
that the Warrant Shares have been duly and validly authorized for issuance upon
exercise of the Warrant against payment therefor as provided in the Warrant and,
when so issued, will be validly issued, fully paid and nonassessable.
We consent to the filing of this opinion as an exhibit to the Registration
Statement.
Very truly yours,
Cooley Godward LLP
By: /s/ James H. Carroll
--------------------
James H. Carroll
B-1
<PAGE> 1
EXHIBIT 23.1
ARTHUR ANDERSEN LLP
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in this registration statement on Form S-3 covering the registration
of 195,000 shares of common stock of our report dated February 3, 1999, included
in BOLDER Technologies Corporation's Form 10-K for the year ended December 31,
1998 and to all references to our Firm included in this registration statement.
/s/ Arthur Andersen LLP
Denver, Colorado,
December 30, 1999.
F-1
