BEIJING, Jul 6 – GSR GO Scale Capital today announced it has signed a non-binding framework agreement with SPI Energy Co., Ltd. (“SPI Energy”) (Nasdaq: SPI) for the issuance of US$500 million worth of convertible bonds (CB) by SPI Energy, addressing investment opportunities in the alternative energy industry.
Pursuant to the agreement, 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. The net proceeds of the CB will be used as SPI Energy’s general working capital to build a leading multinational battery business that serves the automotive industry in China and overseas.
The agreement also includes a potential strategic cooperation between Boston-Power Inc. (“Boston-Power”) and SPI Energy. Founded in 2005 in Boston, Massachusetts, and invested in 2011 by GSR Ventures, Boston-Power is a global supplier of lithium-ion battery products that can improve the quality and safety of sustainable energy storage technologies. It has R&D centers in Westborough, Massachusetts, and Beijing, China, and mass manufacturing operations in Asia.
Mr. Sonny Wu, Founder and Managing Director of GSR GO Scale Capital said, “GSR Capital has more than 10 years’ investment experience in alternative energy. The team has a proven track record in transnational investment operations, especially with cutting-edge technology sectors. Together with SPI, we will establish a global platform to acquire assets in the clean energy sector.”
“We look forward to forming a partnership with Boston-Power and exploring win-win opportunities in the energy storage and EV markets,” said Xiaofeng Peng, Chairman and CEO of SPI Energy. “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.”
GSR GO Scale Capital, boasting a forward-looking investment strategy and resources accumulated over the years from investments made locally and globally, expects to see the birth of a world-leading automotive battery company with its partner. It also sees the strategic partnership continuing to develop and invest in the alternative energy sector, especially in the electric automotive value chain.