Mr. Berg has strategic holdings in a leading lithium ion battery company and an electric vehicle manufacturing company specializing in medium duty electric trucks and delivery vehicles. In the transaction Mr. Berg will initially capitalize the new company with $4.5 million, of which Raser will receive $2.5 million in cash; $1.5 million was paid at closing and the remainder to be paid by December 20, 2010. The balance of $4.5 million will be used as working capital for the new company.
"We have been working on separating the automotive and renewable energy segments, and believe that this will allow both businesses to operate and attract capital more efficiently," said Kraig Higginson, Chairman of Raser Technologies.
"We have been successful in the development of a very promising E-REV powertrain technology. We are pleased that it will soon be offered commercially in America’s most popular vehicle, the pick-up truck, by an exciting new electric vehicle company. The new company plans to begin delivering the first extended range electric trucks to fleet customers beginning the end of this year."
In addition to cash, Raser receives a 39% interest in the new company and will retain the right to appoint one of the three members of the new company’s board of directors.
Mr. Berg commented, "I am very pleased with the acquisition and the opportunity for rapid growth in the electric vehicles market based on Raser’s strategic position, orders and their E-REV truck technology. I believe that this automotive company will offer a completely new kind of work truck to help electrify the largest segment of the automobile business and convert thousands of soft orders into deliveries over the next few years."
Raser is an environmental energy technology company focused on geothermal power development and technology licensing. Raser’s Power Systems segment develops clean, renewable geothermal electric power plants with one operating plant in southern Utah and eight active and early stage projects in four western United States: Utah, New Mexico, Nevada and Oregon, as well as a concession for 100,000 acres in Indonesia.
Raser’s Transportation and Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning Symetron(TM) technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications.