China Nuvo Solar Announces Plans to Acquire Lithium Ion Battery Manufacturer Freya EnergyMarch 09, 2011 by Jeff Shepard
China Nuvo Solar Energy, Inc. announced plans to acquire lithium ion battery company Freya Energy Inc.. The parties have executed a non-binding Letter of Intent (LOI) and are moving toward the signing of a definitive agreement over the next sixty days. Pursuant to the terms of the LOI, China Nuvo Solar would acquire one hundred percent of the outstanding common stock of Freya. Further details of the agreement will be released in the near future. The company will continue to trade under the stock ticker "CNUV" with Freya becoming a wholly owned subsidiary of the alternative energy parent.
Industry experts forecast the lithium battery market to triple from current levels of $11-13 billion to over $40 billion by 2015-2020. Historically, the lithium ion battery market has been principally 90% consumer related, however newer diversified applications including non-automotive vehicle propulsion, defense applications, and electrical storage systems (ESS) are expected to be the new growth drivers.
"This potential acquisition of Freya Energy is the first in the series of planned steps in executing our business model and becoming a meaningful player within the renewable energy space. We believe Freya is an exciting opportunity for the Company and is part of our roll-up strategy to increase shareholder value. Freya is on the cusp of commercialization in a fast growing segment of the renewable energy sector that we believe offers unique advantages over similar technologies," stated Henry Fong, CEO of China Nuvo Solar Energy.
"This transaction is a logical next step in our commercialization efforts that we believe offers Freya the accessibility to the capital markets thereby allowing us to accelerate our path to market entry," commented Richard Fox, CEO of Freya.
Closing of the transaction is subject to customary conditions including, among other things, the negotiation and execution of definitive agreements as well as the approval of both companies’ boards of directors and any necessary stockholder or regulatory approval.