Aug 28 2009
Ener1, Inc. (NASDAQ:HEV) will take the lead among a group of investors that plans to inject $47 million of equity funding into Think Global AS, the Norwegian electric vehicle producer. Ener1, Inc. is the parent company of EnerDel, a leading manufacturer of advanced lithium-ion automotive battery systems based in Indianapolis and an existing supplier to Think.
Ener1, Inc. has agreed to invest approximately $18 million in three tranches, and convert an additional $3.0 million in debt for convertible preferred shares of Think, effectively transferring the 10% equity stake held by Ener1 Group to Ener1, Inc. Once all stages are complete, Ener1, Inc. will hold approximately a 31-percent stake in the company. Other stakeholders in the deal include Investinor, the Norwegian sovereign investment company.
"Automakers need made-to-order performance combined with the pricing and availability of an off-the-shelf system," said Ener1 Chairman and CEO Charles Gassenheimer. "Ener1 and Think have collaborated for years on systems development, and today possess a unique ability to bring together category-leading technologies in a fully integrated platform, to suit a wide variety of vehicle applications."
EnerDel and Think have also agreed to enter into a new long-term battery supply agreement as part of the transaction. EnerDel will receive certain exclusivity rights for the supply of batteries for Think's current and upcoming new vehicle models.
"Ener1 is very pleased to have the opportunity to lead this round of investment in the manufacturer of the first road-ready electric vehicle on the world market," added Ener1 Chairman and CEO Charles Gassenheimer. "As a key battery supplier and now partner in the production and marketing of electric drivetrain solutions for a range of next-generation vehicles, Ener1 looks forward to a strong future relationship with this industry leader."
"This investment cements our partnership with one of the leading advanced battery manufacturers in the world," said Think CEO Richard Canny. "In addition to ensuring supply of high-performance battery systems, the new deal will enable us to more fully capitalize on our advantage in the marketplace with the only 'plug-and-play' electric vehicle drive system with prismatic lithium-ion technology."