MILWAUKEE, March 2, 2017 /PRNewswire/ -- EnSync, Inc.
(NYSE MKT: ESNC), dba EnSync Energy Systems, a leading
developer of innovative distributed energy resource (DER) systems
and internet of energy (IOE) control platforms for the utility,
commercial, industrial and multi-tenant building markets, today
announces the acquisition of DCfusion LLC, a highly regarded leader
in direct current (DC) system engineering design, consulting and
policy.
The United States' electrical
grid is a vast just‐in‐time network that requires constant load
balancing, and relies on a synchronic operating methodology that
does not lend itself well to intermittent activity, such as
renewable energy generation. As an increasingly electricity
consuming world shifts to a portfolio comprised of more renewables,
the need for DC based and hybrid DC-AC system design becomes
increasingly critical for numerous reasons, including:
1) Renewable energy sources are largely DC, relatively
small in scale as opposed to conventional generation, and often
widely distributed, which makes coupling them into the current
"synchronous" system via AC increasingly disruptive, difficult,
more expensive and less reliable than coupling DC systems
2) Energy storage is natively DC, inherently requiring
the need for AC based systems to convert power back and forth
between AC and DC, as opposed to much simpler DC to DC conversions,
which are accomplished with DC based DER systems
3) Electricity trade is much simpler using DC than AC, as
direct transactional management of power flow in an electrical
system, using semiconductor-based power electronics, is greatly
simplified if the power flow is direct current and can be actively
articulated with solid-state devices
4) Resiliency is better achieved with DC because the very
nature of AC systems generally being reactive, as opposed to
actively controlled, creates latency issues that can be detrimental
in critical applications requiring resiliency.
In summary, direct current power systems offer numerous benefits
in terms of reliability, price, performance and higher level of
power articulation.
The acquisition of DCfusion brings decades of customer applied
DC system design and consulting experience to complement EnSync
Energy's application engineering. DCfusion also brings a
unique and substantial pipeline of potential projects in vertical
markets that rely on the consultative expertise of the founders,
and the authoritative voice of policies, programs and standards
shaping the DC-centric technical and market landscape.
Mr. Tim Martinson, DCfusion
Co-Founder and Principle, brings years of experience in developing
and deploying value-based engineered systems for Fortune 100 global
power and control OEMs across the country. Mr. Martinson is
presently responsible for business development, working closely
with industry leaders to drive engagements and facilitate
collaboration among OEMs, architects, design-build firms, academia
and government to deliver innovative microgrid applications.
Mr. David Geary, PE, DCfusion Co-Founder and Principle, for his
entire career has delivered innovation and leadership to numerous
electrical engineering projects in a variety of markets, including
government, and private infrastructure engineering, design,
construction and operations. Mr. Geary is regarded as a pioneer and
leading expert in the evolution of DC power distribution for
telecom and data centers, as well as microgrids integrating
renewable energy and energy storage.
The Principles of DCfusion are actively involved in influencing
worldwide standards and codes, are frequent speakers at industry
events, and hold chair and committee positions within numerous
organizations, including The EMerge Alliance, NFPA/NEC, INTELEC,
SCTE, IEEE and IEC.
DCfusion brings expertise and trusted relationships in vertical
markets and applications that are well aligned with EnSync Energy's
capabilities and technology, such as data centers, cable and
telecom, off-grid communities, critical infrastructure resiliency,
and big box architecture.
The essential terms of the asset-based acquisition include for
EnSync Energy to provide for each of the two principles to receive
inducement stock options and employment agreements, as well as the
opportunity to earn a total combined twenty-percent equity in
DCfusion based on performance. No cash is required to
complete the transaction. DCfusion will operate as a
subsidiary of EnSync, Inc., similar to our Holu Energy subsidiary,
and the acquisition is expected to be accretive to EnSync Energy
within the calendar year.
"EnSync Energy has extensive experience in DER system design and
integration, and DCfusion's ability to aggressively drive
differentiated capabilities to target markets furthers EnSync
Energy's value chain expertise, and opens up a consulting services
revenue stream for the company," said Brad
Hansen, President and CEO of EnSync Energy
Systems.
As an inducement to join the Company, and as part of their
compensation packages, each of Mr. Geary and Mr. Martinson was
issued inducement stock options to purchase a total of 90,000
shares of Company common stock with an exercise price of
$0.56 per share, which was the
closing price of the Company's common stock on the NYSE MKT on
February 28, , 2017. The
options will vest and become exercisable in full on February 28, 2020.
About EnSync
Energy Systems
EnSync, Inc. (NYSE
MKT: ESNC), dba EnSync Energy Systems, is creating the future of
electricity with innovative distributed energy resource (DER)
systems and internet of energy (IOE) control platforms. EnSync
Energy ensures the most cost-effective and resilient electricity,
delivered from an electrical infrastructure that prioritizes the
use of all available resources, such as renewables, energy storage
and the utility grid. As project developer, EnSync Energy's
distinctive engagement methodology encompasses load analysis,
system design consulting, and technical and financial modeling to
ensure energy systems are sized and optimized to meet our
customers' objectives for value and performance. Proprietary
direct current (DC) power control hardware, energy management
software, and extensive experience with numerous energy storage
technologies uniquely positions EnSync Energy to deliver fully
integrated systems that provide for efficient design, procurement,
commissioning, and ongoing operation. EnSync Energy's IOE
control platform adapts easily to ever-changing generation and load
variables, as well as changes in utility prices and programs,
ensuring the means to make or save money behind-the-meter, while
concurrently providing utilities the opportunity to use DERs for an
array of grid enhancing services. In addition to direct system
sales, EnSync Energy includes power purchase agreements (PPAs) in
its portfolio of offerings, which enables electricity savings for
customers and provides a stable financial yield for investors.
EnSync Energy is a global corporation, with joint venture
Meineng Energy in AnHui, China, and energy project
development subsidiary Holu Energy LLC in Hawaii, and
DCfusion LLC, a power system engineering and design,
consultancy and policy firm. For more information, visit
www.ensync.com
About DCfusion
LLC
DCfusion delivers the
vision, expertise, and partnerships to further the proliferation of
direct-current (DC) power systems that effectively enable the
Distributed Energy Resource (DER) systems and microgrids that are
beginning to transform the energy landscape. DCfusion delivers
independent power system consulting services to industries
developing and deploying DC power distribution technologies, and
serves as a respected voice in related policy and program matters.
For more information, visit www.dcfusion.net
Forward-Looking
Statements
This press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, that are intended
to be covered by the "safe harbor" created by those sections.
Forward-looking statements, which are based on certain assumptions
and describe our future plans, strategies and expectations, can
generally be identified by the use of forward-looking terms such as
"believe," "expect," "may," "will," "should," "could," "seek,"
"intend," "plan," "estimate," "anticipate" or other comparable
terms. All statements other than statements of historical
facts included in this press release regarding our strategies,
prospects, financial condition, operations, costs, plans and
objectives are forward-looking statements. Examples of
forward-looking statements include, among others, statements we
make regarding our supply agreement with SPI Solar, Inc., expected
future operating results, expectations concerning our PPA strategy,
the anticipated results of our product development efforts and
other expectations regarding our business strategy.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important factors that could
cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, the risks and uncertainties described in the
Risk Factors and in Management's Discussion and Analysis of
Financial Condition and Results of Operations sections of our most
recent Annual Report on Form 10-K and our subsequently filed
Quarterly Report(s) on Form 10-Q. We undertake no obligation to
publicly update any forward-looking statement, whether written or
oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
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Investor Relations Contact:
Lytham Partners, LLC
Robert Blum, Joseph Diaz, or Joe
Dorame
(602) 889-9700
EnSync Media Contact:
Michelle Montague
mmontague@ensync.com
(262) 735-5676
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SOURCE EnSync Energy Systems