SHANGHAI, July 5, 2016 /PRNewswire/ -- SPI Energy Co., Ltd. ("SPI Energy" or the "Company") (Nasdaq: SPI), a global provider of photovoltaic (PV) solutions for business, residential, government and utility customers and investors, today announced that it has signed a non-binding framework agreement with private equity firm GSR GO Scale Capital Advisors, Ltd. ("GSR GO Scale Capital") for the issue of US$500 million convertible bonds by the Company. GSR GO Scale Capital will act as an investment advisor to bond holders in order to build the largest capacity expansion and potential M&A of electric vehicle (EV) battery products in China and globally. Pursuant to the agreement, the five-year convertible bonds will bear interest at the rate of 5% per annum and the initial conversion price will be calculated as the weighted average share price of SPI Energy during the previous 30 trading days.
"We look forward to forming a partnership with Boston-Power and exploring win-win opportunities in the energy storage and EV markets. Working together, SPI Energy and Boston-Power will create a powerful clean energy chain for the transportation industry in China, spanning power generation, power storage, EV rentals and financial services."
-Xiaofeng Peng, Chairman and CEO of SPI Energy
As part of the proposed transaction, SPI Energy also plans to enter into a strategic cooperation with GSR Ventures invested company Boston-Power Inc. ("Boston-Power"), a developer and manufacturer of next generation lithium-ion cell and battery technologies. Founded in 2005 in Boston, Massachusetts, Boston-Power is a global supplier of lithium-ion battery products that improve the quality and safety of sustainable energy storage technologies. It counts Hewlett-Packard and ASUS as customers who offered Boston-Power "green" battery solutions with long life warranties for the first time in the notebook industry. Boston-Power also manufactures batteries for the EV market and is currently selling these into the Chinese market. Beyond EVs,Boston-Power also fuels a wide range of transportation applications and industrial and consumer electronics products such as e-bikes, e-scooters, medical equipment, robotics, aerospace, stationary power, electric lawnmowers, specialty lighting, tracking devices and remote sensing. Boston-Power is a global company with R&D centers of excellence in Westborough, Massachusetts, and Beijing, China, and mass manufacturing operations based in Asia.
"The net proceeds from the convertible bonds will be used as general working capital to strengthen the financial position of the Company and for potential acquisitions," said Xiaofeng Peng, Chairman and CEO of SPI Energy. "We look forward to forming a partnership with Boston-Power and exploring win-win opportunities in the energy storage and EV markets. Working together, SPI Energy and Boston-Power will create a powerful clean energy chain for the transportation industry in China, spanning power generation, power storage, EV rentals and financial services."
About SPI Energy Co., Ltd.
SPI Energy Co., Ltd. is a global provider of photovoltaic (PV) solutions for business, residential, government and utility customers and investors. SPI Energy focuses on the downstream PV market including the development, financing, installation, operation and sale of utility-scale and residential solar power projects in China, Japan, Europe and North America. The Company operates an innovative online energy e-commerce and investment platform, www.solarbao.com, which enables individual and institutional investors to purchase innovative PV-based investment and other products; as well as www.solartao.com, a B2B e-commerce platform offering a range of PV products for both upstream and downstream suppliers and customers. The Company has its operating headquarters in Shanghai and maintains global operations in Asia, Europe, North America and Australia.