To secure investment in energy storage technology, Powin Energy Corporation has signed an US$25,000,000 agreement from SF Suntech, Inc., a wholly-owned subsidiary of Shunfeng Photovoltaic International Limited, pursuant to a Share Subscription Agreement which also granted SF Suntech an option exercisable within two years to acquire another 30% of Powin Energy Corporation for $37,500,000.
Pursuant to the terms of the Share Subscription Agreement, US$5,200,000 of the US$25,000,000 will be used by Powin Energy Corporation to pay off a loan owing to its parent corporation, Powin Corporation, and the balance will be used by Powin Energy Corporation for working capital and other purposes. Pursuant to a related Shareholder Agreement, SF Suntech will appoint four directors from a seven-person board of Powin Energy upon completing the US$25,000,000 investment. Powin Corporation will be paying a 6% finder’s fee to an unrelated party in connection with this transaction. Subject to the terms and conditions of the Share Subscription Agreement, the transaction is scheduled to close on August 29, 2014.
“This will provide Powin Energy Corporation with capital and a partner to help implement our growth strategy,” said Joseph Lu, President and Chief Executive Officer of Powin Energy Corporation.
Mr. Zhang Yi, Chairman of Shunfeng, said, “We view the technology of Powin Energy Corporation as of strategic significance to our strategy of developing and deploying large-scale energy storage devices throughout China and elsewhere in the world. We are very pleased to join forces with Powin Energy Corporation and its scientific and technical team in the rollout of energy storage systems.”
