New Electric Vehicle Company Purchases Raser’s Automotive Group and Technology to Commercialize Extended Range Electric Trucks and SUVs
PROVO, Utah--(BUSINESS WIRE)--Raser Technologies, Inc. (OTCBB: RZTI), an energy technology company, announced today that it has finalized a transaction with a group of private investors lead by California investor Carl E. Berg to form a new electric automotive company focused initially on trucks and SUVs for fleet customers.
“We have been working on separating the automotive and renewable energy segments, and believe that this will allow both businesses to operate and attract capital more efficiently”
Mr. Berg has strategic holdings in a leading lithium ion battery company and an electric vehicle manufacturing company specializing in medium duty electric trucks and delivery vehicles. In the transaction Mr. Berg will initially capitalize the new company with $4.5 million, of which Raser will receive $2.5 million in cash; $1.5 million was paid at closing and the remainder to be paid by December 20, 2010. The balance of $4.5 million will be used as working capital for the new company.
“We have been working on separating the automotive and renewable energy segments, and believe that this will allow both businesses to operate and attract capital more efficiently,” said Kraig Higginson, Chairman of Raser Technologies. “We have been successful in the development of a very promising E-REV powertrain technology. We are pleased that 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.”
In addition to cash, Raser receives a 39% interest in the new company and will retain the right to appoint one of the three members of the new company’s board of directors.
Mr. Berg commented, “I am very pleased with the acquisition and the opportunity for rapid growth in the electric vehicle market based on Raser’s strategic position, orders and their E-REV truck technology. I believe that this automotive company will offer a completely new kind of work truck to help electrify the largest segment of the automobile business and convert thousands of soft orders into deliveries over the next few years.”
About Raser Technologies
Raser (OTCBB: RZTI) is an environmental energy technology company focused on geothermal power development and technology licensing. Raser’s Power Systems segment develops clean, renewable geothermal electric power plants with one operating plant in southern Utah and eight active and early stage projects in four western United States: Utah, New Mexico, Nevada and Oregon, as well as a concession for 100,000 acres in Indonesia. Raser’s Transportation and Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning Symetron™ technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications. Further information on Raser may be found at: www.rasertech.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding; our beliefs about our ability to develop, build and sell plug-in electric vehicles; our beliefs about our ability to complete this transaction resulting in the formation of Via Automotive Inc.; our beliefs about the opportunity for rapid growth in the electric vehicle market; our beliefs about our ability to develop and deliver electric vehicles; our beliefs about the performance and market applicability of our products and technology; our beliefs about the status and enforceability of our intellectual property; our beliefs about the performance capabilities of our technology; our beliefs about the capabilities, expertise and intentions of our partners and potential partners. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment and our ability to compete in the industry; our ability to adapt our technology and third-party technology for the intended applications; our ability to attract, train and retain key personnel; and such other risks as identified in our quarterly report on Form 10-Q for the quarter ended September 30, 2010, as filed with the Securities and Exchange Commission, and all subsequent filings.
All forward-looking statements in this press release are based on information available to us as of the date hereof, and we undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
