GSR GO Scale Capital has signed a non-binding framework agreement with SPI Energy Co., Ltd. for the issuance of US$500 million worth of convertible bonds by SPI Energy, addressing investment opportunities in the alternative energy industry.
Pursuant to the agreement, GSR GO Scale Capital will act as an investment advisor to bond holders in order to build the largest capacity expansion and potential M&A of electric vehicle battery products in China and globally. The net proceeds of the CB will be used as SPI Energy's general working capital to build a leading multinational battery business that serves the automotive industry in China and overseas.
The agreement also includes a potential strategic cooperation between Boston-Power Inc. and SPI Energy. Boston-Power is a global supplier of lithium-ion battery products and it has R&D centers in Westborough, Massachusetts, and Beijing, China, and mass manufacturing operations in Asia.
GSR GO Scale Capital expects to see the birth of a automotive battery company with its partner. It also sees the strategic partnership continuing to develop and invest in the alternative energy sector, especially in the electric automotive value chain.
Mr. Sonny Wu, Founder and Managing Director of GSR GO Scale Capital said:
"GSR Capital has more than 10 years' investment experience in alternative energy. The team has a proven track record in transnational investment operations, especially with cutting-edge technology sectors. Together with SPI, we will establish a global platform to acquire assets in the clean energy sector."
Xiaofeng Peng, Chairman and CEO of SPI Energy stated:
"We look forward to forming a partnership with Boston-Power and exploring win-win opportunities in the energy storage and EV markets. Working together, SPI Energy and Boston-Power will create a powerful clean energy chain for the transportation industry in China, spanning power generation, power storage, EV rentals and financial services."