| Firefly Energy
Receives Series A Funding
Celebrates Second Year in Business with New Investment
Peoria, IL – October 14, 2004 – Firefly Energy
Inc., formed to create the next generation of lead acid battery
technology based on an innovation discovered by Caterpillar
Inc. (NYSE: CAT), today announced the company has received
$4.0 million in Series A financing. This new funding comes
just one year after spinning the technology out of Caterpillar
through the not-for-profit business incubator, Peoria NEXT.
New investors in this funding round were KB Partners, a Chicago-based
venture capital firm, and United Defense, L.P. (NYSE: UDI),
a leader in military equipment. KB Partners was established
in 1996, and invests in early-stage companies located in the
Midwest. "Firefly Energy represents a great combination
of seasoned management and market leading technology. We are
excited by Firefly's potential to revolutionize the lead acid
battery industry," said Byron Denenberg, Managing Director
of KB Partners.
Caterpillar and the Illinois Finance Authority were original
investors in the company’s seed round, and participated
again in the new Series A round. Caterpillar leaders say the
ability to secure Series A financing reinforces early confidence
in the potential of the battery innovation. “Firefly
Energy was our first spin-out project through Peoria NEXT
and it is exceeding our expectations. The company is developing
a quality product from an innovative idea that will address
an unmet need in the energy storage industry. The timing is
great for Firefly,” said Caterpillar group president
Gerry Shaheen.
The Technology Development Bridge (TDB) program is an innovative
public-private partnership developed by the Illinois Coalition
and funded by the Illinois Finance Authority (IFA). "As
the State's investment banker, one of our key goals is to
support innovative Illinois companies with seed capital. Firefly
Energy shows great promise and we are glad to support their
growth," said IFA Executive Director Ali Ata.
Firefly also announced that it has additionally secured $500,000
in debt financing, led by the State of Illinois’ Department
of Commerce and Economic Opportunity (“DCEO”),
with participation from Peoria County Revolving Loan Fund
and Peoria Citizen's Committee for Economic Opportunity, Inc.
“Firefly Energy is representative of a new wave of innovative
start-ups choosing to make Illinois their home,” said
Jack Lavin, Director of DCEO. “By being pro-active and
ensuring young companies have all the resources they need
to be successful, we can continue stimulating more widespread
economic opportunity and a more vibrant regional economy.”
Funds from both equity and debt financing will be used to
advance product development of Firefly’s innovative
lead acid technology. Specifically, Firefly plans to use the
funds toward increased hiring in product development, the
acquisition of sophisticated test machines, expansion of lab
facilities, and procurement of prototype manufacturing equipment.
“This financing is a testament to the potential of
Firefly’s team and technology. We’re both fortunate
and very appreciative of the support shown to the company
and the technology by our strategic and financial investors,
who see the vast promise of our breakthrough battery technologies,”
said Edward F. Williams, Chief Executive Officer of Firefly
Energy. “This capital, in combination with the State’s
equity investment alongside their attractive debt package
supported by Peoria County, will enable us to accelerate our
drive toward product prototypes and beta customers,”
Williams concluded.
About Firefly Energy (www.fireflyenergy.com
):
Firefly Energy Inc. (“Firefly”) is in the business
to produce and license advanced lead-acid battery technologies.
Firefly Energy’s technology was created by Caterpillar
Inc. as part of its $600+ million annual research & development
operations. Firefly has developed a next generation lead-acid
battery technology that has the opportunity for a major impact
in the $30 billion worldwide battery market. The technology
can deliver a disruptive combination of high performance,
extremely low weight and reduced cost in a battery utilizing
traditional, but non-corrosive, lead-acid chemistry. Firefly’s
technology delivers a performance associated with advanced
materials (Nickel Metal Hydride & Lithium) at a cost similar
to lead acid batteries. The company was launched as a spin-out
from Caterpillar on May 1, 2003, and is headed by co-founders
Edward Williams (CEO), Mil Ovan (Sr. VP), and Kurtis Kelley
(Chief Scientist).
About KB Partners
KB Partners is a leading Chicago-based venture capital firm focused on investments
in early-stage technology companies in the Midwest. Founded in 1996, KB Partners
manages two venture funds totaling in excess of $95 million that target opportunities
in the hardware/software, communications, medical and industrial industries. For
more information, please visit www.kbpartners.com.
Contact:
Robert Garber
Managing Director
KB Partners
847-714-0444 |
