Bolder Technologies Announces A Company Restructuring
GOLDEN, Colo., Jan. 12 /PRNewswire/ -- Bolder Technologies Corporation (Nasdaq: BOLD) announced today immediate cost reduction measures resulting in the elimination of 89 full- and part-time positions from a prior total of 126.
The cost reduction initiatives were prompted by the Company's review of its sales through December 31, 2000, its sales forecasts for 2001, and the current retail climate generally, all of which caused the Company recently to lower its projected revenue forecast. In addition, fluctuations and uncertainty in the capital markets to this point have impacted the Company's ability to raise the additional financing necessary to fund its continued operations at current levels. The Company will record a charge to its operations in the first quarter of 2001 to reflect the restructuring.
"Given the current environment, these steps are necessary to bring the Company's overhead and operating expense in line with projected revenue and conserve resources while the Company considers its strategic options for the future," said Roger F. Warren, Chairman, President and CEO.
"Despite this cutback, we are maintaining a core of technical, sales and administrative staff. We plan to continue to develop new TMF(R) cells for use in future Advanced Engine Starting applications including the upcoming auto industry conversion from 12V to 36V batteries and new Hybrid Electric Vehicle systems. We will also continue to explore opportunities for raising additional capital while also pursuing other strategic alternatives available, including the engagement of a significant partner who can provide both funding and product application expertise. If additional capital is not forthcoming, we would have to consider other options including a sale of the Company or a further reduction of the Company's operations," said Warren.
In a separate press release, Bolder is announcing an early stage relationship with GP Batteries, a Singapore Stock Exchange listed company that is a world leader in the manufacture of spiral wound rechargeable batteries. If fully implemented, GP Batteries would assume the overall responsibility for the manufacture of TMF(R) cells, which would generate significant additional cost savings for Bolder and would enable Bolder to focus on product development and marketing/sales in North America and Europe. Bolder's ability to realize significant TMF(R) cell manufacturing cost savings through outsourcing to GP Batteries is dependent on the Company's ability to raise new capital to fund operations over the next 12-15 months prior to an eventual transfer of manufacturing operations to GP Batteries. Additionally, a decision to transfer manufacturing operations to GP Batteries may result in substantial charges to revalue Bolder's manufacturing related assets as a result of this new operating model.
Bolder Technologies Corporation, headquartered in Golden, Colorado, manufactures and markets advanced, high-power spiral wound rechargeable batteries based on its patented Thin Metal Film ("TMF(R)") technology. The Company is developing and commercializing consumer and OEM battery products with the TMF(R) technology, including the SecureStart(TM) Portable Jump Starter (which the Company began shipping to retailers in September 1999), that use proven lead-acid electrochemistry in a proprietary configuration with a higher power density than any commercially available rechargeable battery. The TMF(R) technology offers numerous advantages over existing batteries for current and future applications, including near-term opportunities in the marine and auto after markets for 12V primary starting batteries. Bolder's website is www.boldertech.com.
Bolder's TMF(R) technology also has possible future applications in the pending auto industry conversion from 12V to 36V and Hybrid Electric Vehicle systems, both directly through vendor sales and indirectly through a license agreement with Johnson Controls, Inc. (JCI).
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