The purchase price is $0.72 per share, which represents a 6.4% premium over the 90-day closing price average for the period ending on the last trading date before signing and a 14% premium over yesterday’s closing price. The transaction will bring approximately $48 million in cash to UQM. The terms of the Agreement were unanimously approved by the Boards of Directors of both companies. UQM shareholders will continue to hold their shares in UQM and UQM stock will continue to be traded on the NYSE MKT.

The transaction, which is subject to usual and customary closing conditions, requires approval by two-thirds of UQM’s outstanding shares as well as the shareholders of HKG. Closing is expected to occur as soon as possible following shareholders’ approval and receipt of approval by the Committee on Foreign Investment in the United States (CFIUS) and the required Hong Kong regulatory authorities. The parties expect the closing will occur within the following six months.

Following the closing of the transaction, UQM will continue to support its existing customers around the world as well as new business development programs. UQM’s headquarters will remain in Longmont, Colorado.

As part of the agreement, the parties have agreed that following the closing, UQM’s board will be increased to nine directors composed of UQM’s current CEO, three current UQM independent directors and five directors nominated by HKG.

HKG, which is publicly listed on the Stock Exchange of Hong Kong (Stock Code: 01188), engages principally in the environmental automobile and related business. It develops and manufactures batteries and battery management systems and develops and manufactures electric and hybrid vehicles. HKG has a market capitalization of approximately $600 million.

Finding a strong strategic partner in Asia has been a priority for UQM with our potential partner meeting three key criteria: 1) provide the necessary capital to allow us to enter the China market; 2) provide the infrastructure to support our continuing product development and operations; and 3) provide access to customers in China to grow our business. The investment by, and continuing partnership with, HKG accomplishes all of these criteria.

We believe HKG’s knowledge and experience in the new energy market in China will enable us to accelerate our strategic initiatives and make us a stronger competitor in North America and globally, while creating long-term shareholder value. This alliance provides UQM with access to the largest electric vehicle market in the world and provides us with a much stronger competitive position in the global market for electric vehicles. We think this is a great win for our shareholders, customers, and employees.

—Joe Mitchell, President and CEO of UQM

UQM Technologies is a developer and manufacturer of power-dense, high-efficiency electric motors, generators, power electronic controllers and fuel cell compressors for the commercial truck, bus, automotive, marine, military and industrial markets. A major emphasis for UQM is developing propulsion systems for electric, hybrid electric, plug-in hybrid electric and fuel cell electric vehicles. UQM is TS 16949 and ISO 14001 certified.