WALTHAM — A123 Systems Inc., a maker of batteries for electric vehicles that is struggling to stay in business, said Friday that it plans to sell stock and warrants to raise about $9 million in proceeds after expenses.
The Waltham company also said it expects to soon have access to $30 million in previously restricted cash.
But its shares fell more than 10 percent to close at $1.16.
The company warned in May that it continues to post significant losses and may not be able to stay in business unless it is able to secure more financing.
On Friday, A123 Systems said it had agreed with existing institutional investors to sell 7.7 million shares of its common stock for $1.30 per share, along with an unspecified number of warrants to buy additional shares.
The share offering alone would raise almost $10 million before expenses.
The per-share price was equal to its closing stock price on Thursday.
The company said separately on Friday that that it had met conditions for the release of $30 million in previously restricted cash related to its 6 percent senior convertible notes. The holders of the notes were expected to deliver documentation releasing the cash as early as Friday, the company said.