SCHMID Group Sells SCHMID Silicon to Group14 Technologies in Preparation for Planned NYSE Listing

• Transaction streamlines SCHMID Group's business and empowers significant investments in core segments
• SCHMID Group to focus on its high-growth and accelerating markets, including high-end electronics, photovoltaics, and energy storage
• Transaction bolsters Company's financial position by enhancing its balance sheet 
• Company on track to list on the NYSE in Q4'2023 
• Group14 accelerates its strategy to build silicon battery technology infrastructure in Europe to support its automotive customers and partners

FREUDENSTADT, Germany and SPREETAL (SCHWARZE PUMPE), Germany, July 24, 2023 /PRNewswire/ -- SCHMID Group, a global solutions provider for the high-tech electronic, photovoltaics, glass, and energy systems industries, today announced the sale of SCHMID Silicon Technology Holding GmbH (SCHMID Silicon) to Group14 Technologies, the leading global manufacturer and supplier of advanced silicon battery materials. Terms of the transaction were not disclosed.

On May 31, 2023, SCHMID Group announced that it is planning to list on the New York Stock Exchange in the fourth quarter of 2023, through a business combination with Pegasus Digital Mobility Acquisition Corp. In readiness for the U.S. listing, the strategic divestiture of its Silicon business unit empowers SCHMID Group to further focus on its target markets, which include high-end electronics, photovoltaics, and energy storage, and to accelerate investments in these key business segements. SCHMID Group will utilize the proceeds from the sale to further strengthen its balance sheet, improve its debt structure and to become, together with former lenders of the SCHMID Group, a strategic investor in Group 14.

Christian Schmid, CEO of SCHMID Group stated: "This strategically planned sale allows us to fully focus on the strength of our core business as we work towards our planned NYSE listing. With Group14, we have found a company that is as innovation-driven as SCHMID Group, with equally strong values and exciting growth plans for the business and its employees."

Group14 will combine SCHMID Silicon's leading silane process technology with its proven manufacturing capabilities to deliver high-energy density silicon battery materials, allowing the company to protect customers and partners from potential supply chain disruptions and to localize integrated silicon battery technology manufacturing in Europe. Group14 will also bring online SCHMID Silicon's state-of-the-art silane factory in Spreetal (Schwarze Pumpe). All current SCHMID Silicon employees will be retained and integrated by Group14. Furthermore, once the factory is online and operational, overall headcount is expected to grow significantly according to Group14's projections.

"Group14 has been rapidly growing across critical markets, and now we're looking forward to being closer to our automotive customers in Europe to support the global energy transition," said Rick Luebbe, CEO & co-founder of Group14 Technologies. "Germany has long been the home for many of the world's largest and oldest automakers, and we're looking forward to putting this critical stake in the ground to bring forth a resilient silicon battery supply chain capable of meeting global demand right now."

About SCHMID Group
The SCHMID Group is a world-leading global solutions provider for the high-tech electronic, photovoltaics, glass, and energy systems industries, with its parent company Gebr. SCHMID GmbH is based in Freudenstadt, Germany. Founded in 1864, today it employs more than 800 staff members worldwide, and has technology centers and manufacturing sites in multiple locations including Germany and China, in addition to several sales and service locations globally. The Group focuses on developing customized equipment and process solutions for multiple industries including electronics, renewables and energy storage.

Further information is available at: www.schmid-group.com.

Contact Information

SCHMID Group:
Kekst CNC
Daniel Yunger / Knut Engelmann
[email protected]

Disclaimers

No Offer or Solicitation

This communication is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of section 10 of the Securities Act of 1933, as amended.

Cautionary Note Regarding Forward-Looking Statements

This communication contains statements that constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements involve predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to certain risks and uncertainties, including but not limited to:

• the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed business combination with Pegasus Digital Mobility Acquisition Corp. announced on May 31, 2023 (the "Business Combination");
• the outcome of any legal proceedings that may be instituted against the SCHMID Group and any definitive agreements with respect thereto;
• the inability to complete the Business Combination due to the failure to obtain approval of the shareholders of the Pegasus Digital Mobility Acquisition Corp. or to satisfy other conditions to closing;
• changes to the proposed structure of the Business Combination that may be required or appropriate as a result of applicable laws or regulations or as a condition to obtaining regulatory approval of the Business Combination;
• the ability to meet stock exchange listing standards following the consummation of the Business Combination;
• the risk that the Business Combination disrupts current plans and operations of the SCHMID Group as a result of the announcement and consummation of the Business Combination;
• the ability to recognise the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees
• changes in applicable laws or regulations and delays in obtaining, adverse conditions contained in, or the inability to obtain regulatory approvals required to complete the Business Combination; and
• the possibility that the SCHMID Group or the combined company may be adversely affected by other economic, business, and/or competitive factors.

The foregoing list of factors is not exhaustive. The forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the SCHMID Group assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

SOURCE The SCHMID Group