Blockmate Ventures Inc (TSX-V: MATE) has secured a deal to acquire US-based BESS Power Innovation Corporation, which is focused on the manufacture, sales and distribution of lithium iron phosphate and lithium-ion sodium batteries and auxiliary products.
Under the terms of the acquisition, Blockmate will issue 20 million common shares to existing BESS shareholders ahead of the scheduled completion date of end November.
Blockmate chief executive officer Justin Rosenberg said the deal would be a good fit for the company’s aspirations.
“We have been actively seeking venture opportunities in the clean energy space and we are delighted to announce this share purchase agreement with the vendors of BESS,” he said.
“Commercial issues around material sourcing and production delays have created a substantial opportunity for lithium battery producers in North America… this acquisition and the partnership BESS has with [Chinese manufacturer] Blivex Energy Technology provides an excellent opportunity to disrupt the industrial battery market in that region.”
Strong track record
Blockmate is seeking to benefit from the BESS team’s track record in the energy transition industry and specifically renewables, storage and electric vehicle charging.
“It is our mandate to help governments and corporations embrace technologies that help them reduce their carbon footprint,” Mr Rosenberg said.
“With our market capitalisation still under $5 million after this acquisition, we are able to offer investors the lowest cost entry to access one of the fastest growing markets being the energy storage sector.”
Exclusive distribution rights
BESS owns exclusive rights to distribute Blivex Energy Technology Co’s lithium battery products across America and aims to address demand for residential and industrial battery products where delivery times exceed 12 months.
The company anticipates that equivalent Blivex battery products can be delivered up to three months from the time of order.
Blivex has been developing, manufacturing and selling industrial lithium and electric vehicle batteries and related products since 2005, and is listed on the Shenzhen Stock Exchange.
“Beyond just distributing batteries manufactured in Asia to North America, the commercial opportunity to leverage Blivex’s supply chain to manufacture battery products in North America and South America is one we are very excited to explore with Blockmate and the support of Blivex,” Mr Rosenberg added.