ZENN makes Investment in Ultracap Company EEStor
Unternehmen und Markt
Donnerstag, den 03. Mai 2007 um 00:15 Uhr
(Source: ZENN) Toronto - ZENN Motor Company announced today that it has made a US $2.5 million equity investment in Austin-based energy storage developer, EEStor, Inc. The negotiated investment terms also grant ZENN an additional investment option of up to US $5 million on the same terms, following EEStor’s successful completion of its next major milestone: permittivity testing.
“We are very pleased to strengthen and deepen our strategic relationship with EEStor
through this investment,” said Ian Clifford, Chief Executive Officer of ZENN Motor Company. “Becoming a shareholder in EEStor at this pivotal point in their development represents an exciting opportunity for ZENN shareholders to benefit from participation in the broader market applications that EEStor will potentially develop for its technology, in addition to our exclusive automotive applications.”
Following this initial investment of US $2.5 million, ZENN Motor Company will own approximately 3.8% of the equity of EEStor, Inc. The investment is being made through ZENN Capital Inc., a wholly owned subsidiary of Feel Good Cars Corporation and is subject to applicable regulatory approvals. Permittivity is a measurement of how much energy can be stored in the EEStor production materials. The requirements of permittivity levels are specified in detail in the existing Technology Agreement between ZENN Motor Company and EEStor, Inc. The verification of permittivity levels will be conducted by an independent 3rd party laboratory. This testing is required to show consistent and replicable results of both the production line and materials produced.
Under its Technology Agreement with EEStor, Inc., ZENN holds certain worldwide exclusive licenses for EEStor’s batteries for new small and medium-sized low speed and highway capable vehicles (up to 1,400 kgs curb weight). ZENN also holds worldwide exclusive rights for EEStor’s batteries for the conversion of any used internal combustion passenger vehicle to electric drive. The Technology Agreement is in good standing.
While continuing to grow its core business of assembly and distribution of low speed electric vehicles, ZENN Motor Company is actively pursuing the commercialization of EEStor technology for its exclusive worldwide markets.