As expected GP Batteries has purchased New Vectrix and certain Vectrix assets. As noted in earlier reporting (Vectrix is dead, long live the New Vectrix?) New Vectrix was formed by GH Ventures and GP Batteries. That earlier announcement described the intention that New Vectrix would buy the assets of Vectrix for a total purchase price of up to $5,056,000 (including cash payments and assumed liabilities), subject to an auction process and approval by the U.S. Bankruptcy court. GP Batteries have now announced the deal has been made. Following from the news last week from Hesketh Motors that they’d made an agreement to distribute and service Vectrix scooters (see: Is Hesketh Motors signaling the rebirth of Vectrix?) it appears the rebirth of Vectrix is underway.
In a Nov 6 filing with the Singapore stock exchange GP Batteries announced their acquisition of shares in New Vectrix. The purchase price is listed as $1.75 million (US) in cash and the assumption of up to $3.3 million in liabilities giving a total price of $5 million. The given rationale is: “The Asset Purchase will enable the Group to acquire assets, technology and intellectual property rights which will strengthen the Group’s presence in electric vehicles market.” This announcement disclosed there were no competing bidders in the auction of Vectrix assets.
In GP Batteries quarterly results filing dated Nov 10 described a global trend towards “carbon footprint reduction” and that GP Batteries “will continue to capitalize on opportunities in larger batteries for electric transportation and other applications.” The filing went on to describe New Vectrix as a new U.S. subsidiary and that they are “in the process of formulating plans to capitalize on this unexpected opportunity to better establish ourselves as a force in electric transportation.”
GP Batteries has long been the supplier of battery packs to Vectrix. Now, by owning Vectrix outright, they may be able to better capitalize on vehicle sales.
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In the past GP Batteries and Vectrix had conducted an R&D project to develop a Lithium-ION battery for the Vectrix scooter. That project failed, however, at great expense to Vectrix as reported earlier (see: Why Vectrix is teetering on bankruptcy, pt. I). Now, by owning Vectrix outright, they may be better able to bring a lithium-ion powered scooter to market with better speed and range than the NiMH version previously available.
GP Batteries will take on a portion of warranty coverage for previously sold Vectrix scooters. Specifically for those “previously sold to dealers and consumers for claims filed within a period of 60 days after the filing of a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code”.
ACQUISITION OF SHARES IN NEW VECTRIX LLC
GP Batteries International Ltd acquires New Vectrix LLC (pending)
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