SPI (NASDAQ: SPI) Energy Shares Rocket Higher as Its Subsidiary – EdisonFuture – and China’s Shaanxi Tongjia Automobile Conclude a Strategic Partnership To Enter the U.S. EV Market

Oct 15, 2020 07:43 EDT
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SPI Energy (NASDAQ:SPI), a provider of flexible photovoltaic solutions for different use cases, is witnessing a share price surge as it becomes the latest entrant in the increasingly crowded EV market.

As per the press statement released today, SPI Energy’s subsidiary – EdisonFuture – has concluded a strategic partnership agreement with China’s Shaanxi Tongjia Automobile to develop and sell a new generation of smart electric pickup trucks as well as electric logistics vehicles:

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“Under the terms of the agreement, EdisonFuture and Tongjia will cooperate in the customized design, development, production, and sales of a new generation of smart electric pickup trucks and electric logistics vehicles. Tongjia will supply parts and support to EdisonFuture’s assembly facility in Fresno, California, where EdisonFuture will complete assembly of the vehicles, including the addition of software and other parts produced locally. EdisonFuture will also be the exclusive North American distributor of all-electric “last-mile” delivery box trucks and pickup trucks currently produced by Tongjia.”

As a refresher, SPI Energy jumped onto the radar of investors on the 23rd of September when it launched EdisonFuture, its wholly-owned subsidiary tasked with designing and developing electric vehicles and EV charging solutions.

As per the terms of the agreement disclosed today, SPI Energy – through its subsidiary EdisonFuture – will become the exclusive distributor of the electric pickup and delivery trucks currently being manufactured by Shaanxi Tongjia. This will allow SPI Energy to capitalize on the cost advantage of these trucks to establish a foothold in the American commercial EV segment.

Consequently, it is hardly surprising that SPI Energy shares have surged over 35 percent in today’s pre-market trading session, currently hovering at the $9.73 price level. Year to date, the stock has registered a gain of over 400 percent, based on the current pre-market price.

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SPI (NASDAQ: SPI) Energy Shares Rocket Higher as Its Subsidiary – EdisonFuture – and China’s Shaanxi Tongjia Automobile Conclude a Strategic Partnership To Enter the U.S. EV Market

Of course, this development comes as SPI Energy continues to improve its liquidity position. As an illustration, on the 28th of September, SPI Energy filed a Form F-3/A with the U.S. Securities and Exchange Commission (SEC). As per the filing, SPI Energy utilized the shelf registration process to “sell from time to time up to $100,000,000 of any combination of the securities described in this prospectus”. These eligible securities include ordinary shares, preferred shares, warrants, subscription rights, debt securities, and, finally, units consisting of any combination of these securities.

Thereafter, on the 30th of September, as part of this shelf registration process, SPI Energy announced a securities purchase agreement with institutional investors. According to the details, the company would sell through a direct offering 2,964,000 shares of its common stock at a price of $5.40 per share, corresponding to $16 million in gross proceeds. This transaction closed in early October.

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