Mobion fuel cell developer gets $3.7M in loans

MTI MicroFuel Cells, has received a $2.2 million loan from its majority owner, Albany-based Mechanical Technology, and has secured $1.5 million in the form of an additional bridge loan from local accredited investor Walt Robb and other investors.

According to regulatory documents filed with the U.S. Securities and Exchange Commission, MTI officials do not expect to advance any more resources to fund MTI Micro’s operations, which are expected to be paid for by external equity or debt investments. MTI expects it will have “adequate resources and cash flows from operations to operate for the foreseeable future.”

On Thursday, MTI withdrew its attempt to raise money through a debt sale, citing recent market conditions. The company also revealed that on Sept. 3 it received a letter from Duracell, the battery-making subsidiary of Gillette Co. owned by Proctor & Gamble Co., indicating that Duracell was terminating without cause its strategic alliance agreement with MTI Micro. MTI Micro and Duracell on Sept. 10 entered into a letter of intent agreeing to explore a new relationship to collaborate on the development and commercialization of Mobion.

http://www.dailygazette.com/news/2008/sep/20/0920_mobion/

Source: Daily Gazette