EnSync Extends Cure Period for SPI Solar Supply Agreement

EnSync Energy Systems, one of the leading developer of innovative energy management systems for the utility, commercial, industrial and multi-tenant building markets has announced that in light of ongoing discussions with SPI Solar Inc., the Company has extended to January 23, 2017 the deadline by which it expects SPI to cure its failure to meet its purchase obligations under its supply agreement with the Company.

Early this year in October EnSync Energy Systems reported that SPI Solar has failed to meet its purchase obligations under its supply agreement with the Company. EnSync Energy has delivered a formal notice of default to SPI Solar.

In the notice the Company informed SPI that to cure its breach of the supply agreement, by November 23, 2016 SPI would need to purchase and pay for Products (and related Services) (as such terms are defined in the supply agreement) from EnSync with a minimum total aggregated 5 MW of rated power, with discharge time of two or more hours and (2) order additional Products (and related Services) from EnSync with an additional minimum total aggregated 10 MW of rated power, with discharge time of two or more hours, including paying a 50 percent deposit for those Products (and related Services).

In case the SPI solar fails to meet these requirements, the Company will terminate the supply agreement.  Following the termination of the supply agreement, it will no longer be possible for SPI to satisfy the conditions that would have enabled it to convert its shares of the Company’s Series C Convertible Preferred Stock into common stock.  Similarly, it will no longer be possible for the warrant to purchase shares of common stock acquired by SPI to become exercisable.

Source: PR Newswire