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ZENN Motor Increases Stake in EEStor to 10.7%; EESU Production Prototype Promised by End of 2009

Earlier in July, ZENN Motor Company Inc. (ZMC) increased its equity investment in energy storage developer, EEStor, Inc. with an additional US $5.0 million investment. The additional equity investment option was triggered by EEStor’s successful completion of permittivity testing on their Composition Modified Barium-Titanate powders (earlier post), a key milestone under the Technology Agreement between ZMC and EEStor.

ZMC now owns approximately 10.7% of the equity of EEStor, Inc., an increase from the 3.8% previously held. The company said that its ability to maximize its investment in EEStor is a result of certain EEStor shareholders not exercising their follow-on investment rights. These investors had also elected not to participate at the time of ZMC’s initial EEStor investment in April 2007.

Under its Technology Agreement with EEStor, ZMC holds the worldwide exclusive rights to incorporate EEStor’s energy storage technology (EESU) for new passenger vehicles up to 1,400 kilograms curb weight (net of batteries); golf carts, Low Speed Vehicles and certain utility vehicles; and the conversion of any class of used internal combustion 4-wheel vehicles to electric.

The EEStor EESU—a high-power-density multi-layered barium titanate ceramic ultracapacitor—is expected to provide energy densities of more than 450 Wh/kg and more than 700 Wh/L; charge in minutes; and have extremely long life.

EEStor has said it anticipates having at-voltage components verified independently by September of this year, with delivery of production prototype EESUs to ZMC by the end of 2009.

The new investment represents the exercise of the maximum additional investment option available to ZMC which was to acquire 117,757 shares at the same price-per-share as the original equity investment granted to ZMC pursuant to the share purchase agreement between ZMC and EEStor dated 30 April 2007. ZMC announced its intention to exercise this additional investment option on 21 May 2009.

Subsequent to its announcement of increasing its stake in EEStor, ZMC completed a previously announced short form prospectus offering of common shares, selling 2,650,000 shares at a price of $3.50 per share raising gross proceeds of C$9,275,000 (US$8.4 million). Net proceeds from this financing, together with existing working capital, is expected to be used to fund product, customer and business development, the final milestone payment to EEStor, Inc. and operating expenses and general corporate purposes.

The shares were offered by way of a short form prospectus in the provinces of Alberta, British Columbia and Ontario and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the US Securities Act of 1933, as amended.

In trading on the TSX Venture Exchange yesterday (21 July), ZMC was the ninth most active security by value.

(Hat-tips to Marc and Brett!)




If EEStor ever produces this high energy density, high power, compact storage unit, at an affordable price, many skeptics may be mortified.

However, ultra-capacitor and battery technology is advancing fast and if EEStor delays much longer, others will come out with similar storage units before EEStor enters production.

Admitted EEStor high performance (450 Wh/Kg and 700 Wh/L) may be surpassed before 2020. However, EEStor's claimed ultra high lifetime cycles and quick charge capabilities will be difficult to match.

Interesting competition ahead.


It's approaching ten years:

Sometimes, faith in EEStor seems like a mass psychology experiment. One public sample capacitor could settle so much.


ZENN seems to believe in them, it is their money to waste, so more power to them. It looks to me like they are "swinging for the fence" so to speak. If they can get EVs and THE ultimate store device, then their future looks good.


In effect, eestor has just gone 1/10th public. ZMC is floating a new offering to raise money, part of which was passed along to eestor. That's just funky. I don't know if that's brilliant for eestor (keeping their secrets close to the vest longer), or if they are giving away a billion dollars in equity, or if ZMC is being taken or what.


Below is a list of major commercial technology breakthroughs which occurred without any verified prototypes during their prior ten years:


ZENN seems to believe in them, it is their money to waste

Actually it's money Zenn is taking from shareholders.

They are sidestepping securities laws. EEStor whips penny stock investors into a frenzy with tantalizing hints about miracle breakthroughs. Zenn is the only way investors can own a piece of the miracle. Zenn itself has never seen a working device, is under no obligation to disclose what they do not know and is thus insulated from fraud allegations.

It's become a little brazen lately. EEStor will need to show something before long. Not a working device, but at least a verifiable experiement which shows they aren't a complete fraud. Which I'm pretty sure they are not.


Right. EEStore has got enough going to have intrigued Lockheed. Undoubtedly there is a future for supercapacitors and non-chemical electrical storage. Whether EEStore is allowed to roll it out or some other transfer entity - we will see this technology play a role in electrification of transport sooner or later.

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