ProGreens New Energy Technology – a battery manufacturer that focuses on the development, production, sale, and service of battery systems, might find a new home. Envirotech Vehicles (OTCMKTS:ADOM), which specializes in new zero-emission, purpose-built electric vehicles (EVs), has announced a letter of intent to purchase ProGreens.
There is no doubt that Envirotech will be benefitted by this acquisition. It paves the way for them to become a fully integrated small to medium-sized EV manufacturer, while driving considerable cost synergies and reducing vehicle expenses. It will be able to manufacture batteries in-house, and get access to contiguous high growth energy storage systems (ESS) market opportunity. Lastly, their management team gets more members with over a decade of experience in the battery industry, along with an engineering and manufacturing team.
Phillip Oldridge, CEO of Envirotech Vehicles, hopes they are able to reduce vehicle costs over long-term (a major concern when it comes to EVs), while enhancing quality. The company wants to explore opportunities in the ESS market too, as it has enormous potential with applications including EV charging stations and energy backup for commercial and residential. George Tao, CEO of ProGreens, is confident that the combination of their technology and leadership in the battery industry and integration with Envirotech’s planned manufacturing facility, will work wonders.
However, the acquisition has to pass a due diligence review, board approval from Envirotech, and successful negotiation and execution of a purchase agreement, in order to go through.