SPI Energy signs non-binding framework agreement with GSR GO Scale Capital

SPI Energy, a global provider of photovoltaic (PV) solutions has signed a non-binding framework agreement with private equity firm GSR GO Scale Capital Advisors 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.

As part of the proposed transaction,SPI Energy also plans to enter into a strategic cooperation with GSR Ventures invested company Boston-Power Inc. Founded in 2005, Boston-Power is a global supplier of lithium-ion battery products that improve the quality and safety of sustainable energy storage technologies. 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.

“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.”