In the transaction, Mr Berg, who has strategic holdings in a lithium ion battery company and an electric vehicle manufacturing company producing medium duty electric trucks and delivery vehicles, will initially capitalize the new company with $4.5m.
Out of this $4.5m, Raser will receive $2.5m in cash, getting $1.5m at closing and the remainder by 20 December 2010, while the balance of $4.5m will be used as working capital for the new company.
The new company that will provide an opportunity for growth in the EV market based on Raser’s strategic position, orders and their E-REV truck technology, will be 39% owned by Raser, which will also retain the right to appoint one of the three members of the new company’s board of directors.
Raser Technologies chairman Kraig Higginson said that the company has been successful in the development of a promising E-REV powertrain technology and it will soon be offered commercially in America’s most popular vehicle, the pick-up truck, by an exciting new electric vehicle company.
"The new company plans to begin delivering the first extended range electric trucks to fleet customers beginning the end of this year," Higginson said.
