Wilmington, MA, Nov. 23, 2005 — Beacon Power Corp. announced an intended acquisition of NxtPhase T&D Corp. has been terminated. Beacon Power, NxtPhase T&D Corp. and class A shareholders of NxtPhase have executed a settlement agreement that terminates an arrangement agreement, originally signed on April 22, 2005, under which Beacon was to acquire NxtPhase in an all-stock transaction.
As part of the settlement agreement, each side agreed to release one another from any legal claims or actions resulting from the process, and Beacon also agreed to pay $150,000 to NxtPhase.
The arrangement agreement specified that the transaction would automatically terminate if not completed by December 31, 2005. Considering the status of the SEC review process and the limited time remaining until December 31, as well as the increase in Beacon’s stock price since the signing of the agreement, it was determined that the transaction was unlikely to be completed.