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Solar Power, Inc. (SOPW)

  • Fri, Apr. 17, 10:32 AM
    • Distributed energy storage system provider ZBB Energy (NYSEMKT:ZBB) has struck a deal to supply 40MW of systems to solar project developer Solar Power, Inc. (OTCQB:SOPW) over 4 years. The deal is estimated to be worth $80M-$120M.
    • As part of the agreement, SPI is buying 8M ZBB common shares at $0.6678 apiece (40% below current levels, good for proceeds of $5.3M), and $28M worth of convertible preferred shares. The preferred shares are "only convertible upon the completion of specific procurement milestones."
    • Following the investment, ZBB, whose systems combine batteries with power management hardware, will have over $45M in cash. The deal also "contemplates" granting SPI a warrant to buy 50M ZBB common shares at $0.7346 apiece (proceeds of $36.7M).
    • ZBB chairman Paul Koeppe, whose company sports a $43M market cap: "This agreement gives us immediate access to regions and countries where we lack a presence today ... In addition, we expect this partnership to completely change the paradigm at ZBB from development stage to a high growth manufacturing company."
    • SPI chairment Xiaofeng Peng: "This partnership ... is all about accelerating global solar penetration through the marriage of solar plus storage. Energy storage systems are becoming vital to PV system expansion worldwide due to a number of factors..." SolarCity, SunEdison, and others have also shown an interest in pairing solar systems with battery-based storage.
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Company Description
SPI is a leading vertically integrated photovoltaic (PV) solar developer that designs, engineers and constructs complete PV solar energy facilities (SEF). The company develops SEFs to provide onsite electricity production for industrial and commercial enterprises. It also develops utility-scale... More