Axion Power International Inc. (OTCPK:AXPW) announced that it has entered into a securities purchase agreement for private placement of senior convertible notes having a principal amount of $600,000 to be issued at a 15% discount for gross proceeds of $510,000 on August 6, 2015. The notes carry a fixed coupon of 12% per annum and would mature on 90 days from the closing. The notes convertible into common shares of the company at a fixed conversion price of $1.75 per share.

The company also issued warrants to purchase 510,000 common shares at an exercise price of $1.75 per share for a period of five years from the date of closing. The transaction was approved by the company's board of directors. The company will issue securities pursuant to exemption provided under Regulation D. The transaction will include participation from existing investors, Empery Asset Master Ltd., Empery Tax Efficient, LP, Empery Tax Efficient II, LP, funds managed by Empery Asset Management, LP, Capital Ventures International, a fund managed by Heights Capital Management, and other investor D. Walker Wainwright.

The company is expected to close the transaction on or before August 7, 2015.