SHANGHAI, April 17, 2015 /PRNewswire/ -- Solar Power, Inc. ("SPI") (OTCBB: SOPW), a vertically-integrated photovoltaic ("PV") developer, today announced its intention to enter into a strategic partnership with ZBB Energy Corporation (NYSE MKT: ZBB), a leading developer of innovative energy management systems solutions serving the utility, commercial and industrial building markets. As part of the proposed strategic partnership, the parties have executed today a Securities Purchase Agreement (SPA) valued at $33.4 million, consisting of a combination of newly issued common stock and convertible preferred stock of ZBB. Under the terms of the SPA, SPI will purchase 8,000,000 shares of ZBB common stock for approximately $5.4 million at a price per share of $0.6678 and 28,048 shares of ZBB Series C Convertible Preferred Stock for approximately $28.0 million. The aggregate purchase price of the purchased preferred shares was determined based on a price of $0.6678 per common equivalent. The SPA also contemplates that ZBB will issue to SPI a warrant to purchase 50,000,000 shares of ZBB common stock for an aggregate purchase price of $36.7 million and a per share exercise price equal to $0.7346.
In addition, the proposed strategic partnership includes a supply agreement pursuant to which ZBB will supply SPI with energy storage systems with total combined power output of 40 megawatts (MW) over a period of four years. The parties intend to enter into the supply agreement upon closing of the SPA.
The energy storage market has experienced rapid growth, driven by commercial, industrial and residential customers seeking energy savings from solar and emergency back-up power from storage. In addition, utilities are increasingly seeking energy storage solutions that can make the grid more resilient and less susceptible to failure.
"This proposed partnership between SPI and ZBB is all about accelerating global solar penetration through the marriage of solar plus storage," said Xiaofeng Peng, Chairman of SPI. "Energy storage systems are becoming vital to PV system expansion worldwide due to a number of factors, and we believe that ZBB's leading technology will help SPI become an early-mover in capturing this huge global opportunity. In particular, the global shift toward distributed generation (DG) solar has magnified the need to develop viable energy storage solutions for the commercial and industrial segments. We believe the integration of storage and energy management will become an increasing differentiator for solar companies, and this partnership positions SPI strongly to address these needs in the coming years."
About Solar Power, Inc. (OTCBB: SOPW)
Solar Power, Inc. ("SPI" or the "Company") is a global leader in enabling photovoltaic ("PV") solutions for business, residential, government and utility customers and investors. SPI focuses on the downstream PV market including the development, financing, installation, operation and sale of utility-scale and residential solar power projects in China, Japan, Europe and North America. The Company also operates an innovative online energy e-commerce and investment platform, www.solarbao.com, which enables individual and institutional investors to purchase innovative PV-based investment and other products. The Company has its operating headquarters in Shanghai and maintains global operations in Asia, Europe and North America.
About ZBB Energy Corporation (NYSE MKT: ZBB)
ZBB Energy Corporation ("ZBB") is an applications solutions company providing advanced energy management systems critical to the transition from a "coal-centric economy" to one reliant on an enormous expansion in renewable energy. Whether part of the grid power transmission and distribution network, or behind the meter in commercial, industrial and multi-tenant buildings, ZBB Energy brings vital power control and energy storage solutions to the most pressing problems caused by the incorporation of increasingly pervasive renewable energy generating assets. ZBB Energy also provides energy management systems for off-grid applications such as island or remote power. ZBB is a global corporation, with a joint venture in AnHui, China at Meineng Energy, as well as a strategic partnership with Lotte Chemical in South Korea.
For more information, visit: www.zbbenergy.com.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of SPI, its subsidiaries and the solar industry, which can be identified by the use of forward-looking terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "expects" or similar expressions. These statements constitute "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, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Among other things, the quotations from management in this press release contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, including uncertainties regarding whether the transactions contemplated will be successfully completed. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risks and other factors detailed in the company's reports filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.
SOURCE Solar Power, Inc.