Photovoltaic developer Solar Power Inc. will enter into a partnership with ZBB Energy Corp. a developer of energy management systems solutions serving the utility, commercial and industrial building markets.
As part of the proposed strategic partnership, the parties have executed today a securities purchase agreement valued at $33.4 million, consisting of a combination of newly issued common stock and convertible preferred stock of ZBB.
Under the terms of the agreement, SPI will purchase 8 million shares of ZBB common stock for about $5.4 million at a price per share of $0.6678 and 28,048 shares of ZBB Series C Stock for about $28 million.
In addition, the proposed strategic partnership includes a supply agreement pursuant to which ZBB will supply SPI with energy storage systems with total combined power output of 40 MW over a period of four years. The parties intend to enter into the supply agreement upon closing of the SPA.
The energy storage market has experienced rapid growth, driven by commercial, industrial and residential customers seeking energy savings from solar power and emergency back-up power from storage. In addition, utilities are increasingly seeking energy storage solutions that can make the grid more resilient and less susceptible to failure.