ZENN Motor Company Makes Equity Investment in EEStor
30 April 2007
Feel Good Cars Corporation, operating as ZENN Motor Company, has made a US$2.5 million equity investment in Austin-based energy storage developer, EEStor. The negotiated investment terms also grant ZENN an additional investment option of up to US $5 million on the same terms, following EEStor’s successful completion of its next major milestone: permittivity testing.
EEStor is developing a new high-power-density ceramic ultracapacitor (the Energy Storage Unit—EESU). EEstor has publicly claimed a permittivity figure—a measurement of the ability of a material to store an electric charge—of 18,500 or more. The required permittivity levels are specified in detail in the existing Technology Agreement between ZENN Motor Company and EEStor.
We are very pleased to strengthen and deepen our strategic relationship with EEStor through this investment. Becoming a shareholder in EEStor at this pivotal point in their development represents an exciting opportunity for ZENN shareholders to benefit from participation in the broader market applications that EEStor will potentially develop for its technology, in addition to our exclusive automotive applications.—Ian Clifford, CEO of ZENN Motor Company
Following this initial investment of US$2.5 million, ZENN Motor Company will own approximately 3.8% of the equity of EEStor.
Under its Technology Agreement with EEStor, ZENN holds certain worldwide exclusive licenses for EEStor’s storage units for new small and medium-sized low-speed and highway-capable vehicles (up to 1,400 kg curb weight). ZENN also holds worldwide exclusive rights for EEStor units for the conversion of any used internal combustion passenger vehicle to electric drive.
ZENN Motor Company currently produces and sells the ZENN, a fully-electric low speed vehicle (LSV). The potential commercialization of EEStor’s EESU in future ZENN vehicles will allow them to go as far and as fast as a traditional car at a fraction of the cost, according to the company.
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