Eos Energy Enterprises acquires remaining 51 percent stake in HI-POWER, LLC, a manufacturing joint venture with Holtec International Nasdaq: EOSE
EDISON, NJ, April 14, 2021 (GLOBE NEWSWIRE) – Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos”), a leading provider of secure, scalable, efficient, and sustainable zinc-based energy storage systems, today announced the acquisition of remaining 51% of the shares in HI-POWER, LLC (“HI-POWER”). Eos expects the acquisition to improve operational and financial flexibility through the vertical integration of the supply chain.
Founded in August 2019, HI-POWER is a manufacturing facility joint venture with Holtec International (“Holtec”) located near Pittsburgh, Pennsylvania and in close proximity to more than 80% of Eos’ suppliers. HI-POWER, which has exclusive manufacturing rights in North America, was founded to expand production of the Znyth® aqueous batteries developed by Eos.
The acquisition gave Eos the remaining and controlling stake in HI-POWER, including all assets and intellectual property rights. Eos will repay Holtec’s initial $ 10 million equity investment in HI-POWER in addition to five annual installments of $ 5 million.
Upon completion of the acquisition, Eos took full control of the supply chain, back office functions, HI-POWER staff and day-to-day management. Eos will continue to manufacture its non-toxic, non-flammable energy storage systems at the facility, which employs more than 100 technicians. In addition, Holtec will continue to act as a preferred distributor due to its relationships with utility companies around the world.
“HI-POWER played an important role at a critical point in our business and enabled us to get a manufacturing operation up and running quickly,” said Joe Mastrangelo, Eos chief executive officer. “This acquisition, combined with the supply chain expertise of our new Chief Operating Officer, Jody Markopoulos, will position us strategically to expand the manufacturing team and further scale our production. We look forward to a future where we expect Eos batteries to power communities around the world. “
Dr. Kris Singh, CEO of Holtec, will step down from the Eos Board of Directors with immediate effect. Eos will seek to strategically add a new board member in the coming months.
“We would like to express our sincere thanks and appreciation to Dr. Singh and wish him the best of luck in his future endeavors,” said Mastrangelo.
Eos Energy Enterprises, Inc. is accelerating the clean energy transition with extremely sophisticated solutions that are changing the way the world stores electricity. Our groundbreaking Znyth® aqueous zinc battery is designed to overcome the limitations of traditional lithium-ion technology. Safe, scalable, efficient, sustainable – and made in the USA. – It is the core of our innovative systems that today offer utility, industrial and commercial customers a proven and reliable alternative to energy storage. Eos was founded in 2008 and is headquartered in Edison, New Jersey. For more information on Eos (NASDAQ: EOSE), please visit eose.com.
This press release contains certain statements that may constitute “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements include, but are not limited to, statements that relate to forecasts, projections or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate”, “believe”, “continue”, “might”, “estimate”, “expect”, “intend”, “may”, “could”, “plan”, “possible”, “potentially” ” predict, “project,” “should,” “would” and similar expressions identify forward-looking statements, but the absence of these words does not mean that any statement is not forward-looking. Forward-looking statements may include, for example, statements about: the future financial performance of Eos; Eos plans for expansion and acquisitions; Changes in strategy, future business, financial condition, estimated revenues and losses of Eos, projected costs, outlook, plans and objectives of management. These forward-looking statements are based on information available as of the date of this press release and current expectations, projections and assumptions and involve a number of judgments, risks and uncertainties. Accordingly, any forward-looking statements should not be assumed to reflect the parties’ views at a later date, and Eos undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date they are made, whether as a result of new information, future events or for other reasons, unless required by applicable securities laws. You should not place undue reliance on these forward-looking statements. Due to a number of known and unknown risks and uncertainties, actual results or performance could differ materially from those expressed or implied in these forward-looking statements. Some factors that could cause actual results to differ include: (1) the outcome of legal proceedings that may be brought against Eos; (2) the ability to maintain the listing of Eos common stock on the NASDAQ; (3) the ability of Eos’ business to grow and profitably manage growth, maintain relationships with customers and suppliers, and retain management and key employees; (4) changes in applicable laws or regulations; (5) the possibility that Eos will be adversely affected by other economic, business and / or competitive factors; and (6) other risks and uncertainties as disclosed from time to time, including those further described in Eos’ recent filings with the Securities and Exchange Commission, including Form 10-K filed on February 26, 2010 for Fiscal year 2021 ending December 31, 2020 and other factors identified in Eos’ previous and future SEC filings with the SEC are available at www.sec.gov.