UQM Technologies, Inc., Longmont, Colo., a developer and manufacturer of electric motors, generators, power electronic controllers and fuel cell compressors for the commercial truck, bus, automotive, marine, and industrial markets has announced it has closed the first stage investment under its stock purchase agreement with China National Heavy Duty Truck Group Co., Ltd. (CNHTC) through its wholly owned subsidiary, Sinotruk (BVI) Ltd.
In this first stage investment, CNHTC has acquired a 9.9% ownership interest in UQM. Closing of the second stage investment will require approval by UQM’s shareholders and clearance by the Committee on Foreign Investment in the United States (CFIUS). The parties expect the second stage investment to close as soon as those approvals are received.
As part of the agreement, Ma Chunji, chairman of CNHTC, has been appointed to the board of UQM as a non-voting observer member.
After the closing of the second stage investment, UQM and CNHTC intend to form a joint venture for the manufacture and sale of electric propulsion systems in China. The parties expect Sinotruk to be a significant purchaser of electric propulsion systems from the joint venture, and other customers will be identified for sales as well. The parties are continuing their work to complete the definitive agreement that will define the terms of this joint venture in China.
“The closing of the first stage investment is a significant milestone in our new relationship with CNHTC,” said Joe Mitchell, president and CEO of UQM. “The proceeds from this investment add strength and stability to our balance sheet. We are now actively engaged to obtain approvals from our shareholders and from the Committee on Foreign Investment in the United States, so that we can finalize the second stage investment from CNHTC. This will allow us to execute on our strategy to become a major player in the electric vehicle propulsion market in China.”
For more information: www.uqm.com