MILWAUKEE, Oct. 24, 2016 /PRNewswire/ -- EnSync, Inc. (NYSE MKT: ESNC), dba EnSync Energy Systems, a leading developer of innovative energy management systems for the utility, commercial, industrial and multi-tenant building markets (the "Company"), today reported that due to the failure of SPI Solar Inc. (fka Solar Power Inc.) ("SPI") to meet its purchase obligations under its supply agreement with the Company, the Company has delivered a formal Notice of Default to SPI. In this Notice of Default, the Company informed SPI that to cure its breach of the supply agreement, by November 23, 2016 SPI would need to (1) 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). If SPI fails to meet these requirements, the Company intends to 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.
About EnSync Energy Systems
EnSync, Inc. (NYSE MKT: ESNC), dba EnSync Energy Systems, is enabling the future of electricity with advanced energy management systems critical to a global economy becoming increasingly reliant upon the expansion of renewable energy. Whether part of the grid power transmission and distribution network, or behind the meter in commercial, industrial and multi-tenant buildings, EnSync technology brings differentiated power control and energy storage solutions to electricity-challenged environments. Our technologies also serve as the system level intelligence in microgrid applications, by seamlessly integrating multiple generation and storage assets to deliver power in remote and community level environments not served by the grid, or areas electing to use the grid secondary to microgrid assets. In 2015, EnSync incorporated power purchase agreements (PPAs) into its portfolio of offerings, enabling electricity savings for customers and providing a stable financial yield for investors. EnSync is a global corporation, with a joint venture in AnHui, China at Meineng Energy. For more information, visit: www.ensync.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the "safe harbor" created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "could," "seek," "intend," "plan," "estimate," "anticipate" or other comparable terms. All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding our supply agreement with SPI Solar, Inc., expected future operating results, expectations concerning our PPA strategy, the anticipated results of our product development efforts and other expectations regarding our business strategy. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risks and uncertainties described in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our most recent Annual Report on Form 10-K and our subsequently filed Quarterly Report(s) on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Investor Relations Contact:
Lytham Partners, LLC
Robert Blum, Joseph Diaz, or Joe Dorame
EnSync Media Contact:
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ensync-delivers-notice-of-default-to-spi-solar-inc-under-supply-agreement-300349559.html
SOURCE EnSync, Inc.