SANTA CLARA, CA /ACCESSWIRE / November 13, 2020 / SPI Energy Co., Ltd., (NASDAQ:SPI) (the "Company"), aglobal renewable energy company and provider of photovoltaic (PV) and electricvehicle (EV) solutions for business, residential, government, logistics andutility customers and investors, today announced the acquisition of PhoenixMotorcars (“Phoenix”), based in Ontario, California. With over 2.3 millionmiles driven on its Class 4 electric fleet vehicles, this acquisition providesSPI, through its EdisonFuture Subsidiary, a strong foothold in the US EV sector.
Considerationconsisted of $11.5 million in stock, $1 million in cash, a $4.5 million commitmentfor working capital to support continued growth of the business, and up to $10 millionin future earnouts. Phoenix is on target to have over 100 vehicles delivered bythe end of 2020 and has over 70 vehicles in backlog. Based on its currentbacklog and opportunities in its pipeline, Phoenix is expected to seesubstantial growth in 2021, 2022 and beyond.
Phoenix launched itsfirst electric drivetrain in 2009 and sold its first commercial EV shuttle busin 2014. Built on the Ford E-450 platform, Phoenix is introducing its 3rdgeneration drivetrain by year end, which includes its next generation batteryoffering with size modularity of 63, 94, 125, & 156 kWh. Vehicles can beprovided in a range of configurations, including shuttle buses, utility trucks,service trucks, flatbed trucks, walk-in vans, cargo trucks and school buses. Customers include, and have included, majorairports, airport shuttle operators, hotel chains, seaports, universities, municipalities,and large corporations, among others. The team brings with it years ofexperience in the design and integration of electric drivetrain systems,hardware and software engineering capabilities as well as proven telematics.
Phoenix has strategicrelationships with premier commercial vehicle companies, including Creative BusSales, one of the largest distributors of commercial buses in the US (“Creative”)and Forest River, a Berkshire Hathaway company. Phoenix leverages Creative’snational sales footprint in selling and servicing its vehicles. Forest River,one of the nation’s largest manufacturers of commercial vehicles, serves as asource of vehicles for Phoenix and could eventually be a partner in assemblingEVs.
"When surveyingthe landscape of EV companies in the US, we wanted to ensure that we partneredwith a well-known and proven product and team. Phoenix has a solid reputationin the industry for product quality and performance. We look forward to helpingthem grow their product lineup and accelerate their growth,” stated XiaofengPeng, Chairman and CEO of SPI Energy.
“We are excited tobecome part of the EdisonFuture team as we share a common vision for the EV marketand growing the business. Moreover, by entering the public markets, we believewe can better support our growth objectives in a quickly evolving EV industry,”said Tarek Helou, Chief Operating Officer of Phoenix.
Moving forward, withthe support of EdisonFuture, Phoenix plans to introduce a Class 5 and 6 vehicleand, ultimately, develop its own truck chassis. It is also expected thatPhoenix will be able to accelerate work it is doing on what it believes couldbe the first autonomous shuttle bus under development in partnership with EasyMile,as part of the Federal Transit Authority 2020 AIM Grant.
Mr. Peng added, “Wecouldn’t be more excited about this acquisition and the opportunities beforeus. I’ve spent significant time getting to know the team and we will befocusing significant resources to ensure the business is well capitalized tocompete in the massive fleet vehicle electrification opportunity.”
Roth Capital Partnersacted as exclusive financial advisor to Phoenix Motorcars in the transaction.
About SPI Energy
SPI Energy Co., Ltd.(SPI) is a global renewable energy company and provider of photovoltaic (PV)and electric vehicle (EV) solutions for business, residential, government,logistics and utility customers and investors. The Company provides a fullspectrum of EPC services to third party project developers, as well asdevelops, owns and operates solar projects that sell electricity to the grid inmultiple countries, including the U.S., the U.K., Greece, Japan and Italy. TheCompany has its US headquarters in Santa Clara, California and maintains globaloperations in Asia, Europe, North America and Australia. SPI is also targetingstrategic investment opportunities in green industries such as battery storageand charging stations, leveraging the Company's expertise and growing base ofcash flow from solar projects and funding development of projects inagriculture and other markets with significant growth potential.
For more information on SPI Energy and its subsidiaries, the Company recommendsthat stockholders, investors and any other interested parties read theCompany's public filings and press releases available under the InvestorRelations section at www.SPIgroups.com and www.phoenixmotorcars.com or available at www.sec.gov.
This press releasecontains forward-looking statements, as that term is defined in the PrivateLitigation Reform Act of 1995, that involve significant risks anduncertainties. Forward-looking statements can be identified through the use ofwords such as may," "might," "will,""intend," "should," "could," "can,""would," "continue," "expect,""believe," "anticipate," "estimate,""predict," "outlook," "potential,""plan," "seek," and similar expressions and variations orthe negatives of these terms or other comparable terminology. Readers arecautioned not to place undue reliance on these forward-looking statements,which reflect the Company's current expectations and speak only as of the dateof this release. Actual results may differ materially from the Company'scurrent expectations depending upon a number of factors. These factors include,among others, the coronavirus (COVID-19) and the effects of the outbreak andactions taken in connection therewith, adverse changes in general economic andmarket conditions, competitive factors including but not limited to pricingpressures and new product introductions, uncertainty of customer acceptance ofnew product offerings and market changes, risks associated with managing thegrowth of the business, and those other risks and uncertainties that aredescribed in the "Risk Factors" section of the Company's annualreport filed on Form 20-F filed with the Securities and Exchange Commission.Except as required by law, the Company does not undertake any responsibility torevise or update any forward-looking statements.
SPI Energy Co., Ltd.
SOURCE: SPI Energy Co., Ltd.