UQM Technologies Announces Termination of Stock Purchase Agreement with Hybrid Kinetic Group
December 27 2016 - 06:45AM
Business Wire
UQM TECHNOLOGIES, INC. (NYSE MKT:UQM), announced that on
December 26, 2016 it terminated the Stock Issuance and Purchase
Agreement (the “Agreement”) with Hybrid Kinetic Group Limited. The
Agreement provides that it may be terminated by either party if
various conditions to closing were not satisfied on or before
December 25, 2016 (the “End Date”). Among the closing conditions
that were not satisfied or waived by the End Date was the approval
by UQM’s shareholders of an amendment to UQM’s Articles of
Incorporation to reduce the voting requirements for future
amendments to the Articles of Incorporation and other corporate
actions from the current two-thirds threshold to a majority
threshold (Proposal Three in UQM’s Proxy Statement related to the
Agreement).
As the transaction with Hybrid Kinetic did not close by the End
Date, UQM’s Board of Directors and the special committee of
independent directors of UQM determined to terminate the Agreement.
There are no penalties to UQM from terminating the Agreement
following the End Date.
“While a majority of our shareholders voted in favor of the
investment transaction with Hybrid Kinetic, our shareholders were
sufficiently concerned about the reduction in voting threshold on
key corporate actions that Proposal Three was soundly defeated even
after adjourning and reconvening our annual meeting two times to
allow us further time to solicit votes to approve this change,”
said Joe Mitchell, President and CEO of UQM. “We have cash and an
asset base to meet our anticipated liquidity needs for the near
future. Pending orders from key customers will help to fill our
pipeline over the next several months. We have already re-engaged
our investment banking advisor BDA Partners, and with the activity
we have recently seen in the electric vehicle market, we are
optimistic that we will be able to secure partnership opportunities
to execute on our global strategy to obtain volume production
contracts leading to increased revenue flow and profitability.”
As previously announced, UQM has adjourned its Annual
Shareholder Meeting with respect to the proposal to amend and
restate its Articles of Incorporation to increase the number of
authorized shares of its common stock. UQM’s Board of Directors
believes that approval of the proposal to increase the number of
authorized shares of UQM common stock is still in the best interest
of UQM for future potential partnerships even though the Agreement
with Hybrid Kinetic was terminated.
About UQM
UQM Technologies is a developer and manufacturer of power-dense,
high-efficiency electric motors, generators, power electronic
controllers and fuel cell compressors for the commercial truck,
bus, automotive, marine, military and industrial markets. A major
emphasis for UQM is developing propulsion systems for electric,
hybrid electric, plug-in hybrid electric and fuel cell electric
vehicles. UQM is TS 16949 and ISO 14001 certified and located in
Longmont, Colorado. For more information, please visit
www.uqm.com.
This Release contains statements that constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act.
These statements appear in a number of places in this Release and
include statements regarding our plans, beliefs or current
expectations about the availability of other partnership
opportunities, and our beliefs about the electric vehicle market
and our prospects in that market. Important factors that could
cause actual results to differ from those contained in the
forward-looking statements include the receptiveness of other
potential partners to our business. Important Risk Factors that
could cause actual results to differ from those contained in the
forward-looking statements are contained in our Form 10-K and Form
10-Q’s, which are available through our website at www.uqm.com or
at www.sec.gov.
Source: UQM Technologies, Inc.
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version on businesswire.com: http://www.businesswire.com/news/home/20161227005081/en/
EnergyTech Investor LLCShawn Severson,
415-233-7094orUQM Technologies, Inc.David Rosenthal,
303-682-4900
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