China-based storage solutions provider Meineng Energy has raised about $3.24 million in funding. The investor was Wuhu Fuhai-Haoyan Venture Investment, a branch of Shenzhen Oriental Fortune Capital Co.
MILWAUKEE, WI–(Marketwired – Aug 18, 2014) – ZBB Energy Corporation (NYSE MKT: ZBB), a leading developer of innovative energy storage and control platforms serving utilities and behind the meter commercial and industrial buildings, today announced that its China Joint Venture Company, Anhui Meineng Store Energy System Co., Ltd. (“Meineng Energy”), has received a cash investment of 20,000,000 RMB (approximately $3.24M US) from Wuhu Fuhai-Haoyan Venture Investment, L.P., a branch of Shenzhen Oriental Fortune Capital Co., Ltd., for a post-closing equity position of 8%. Subject to receipt of required governmental approval for this investment, which is expected to be received in August or September of 2014, this investment capital will be used to fund ongoing operations and development of the China market, and provides Meineng Energy a post-closing valuation of 250,000,000 RMB (approximately $42,000,000).
Meineng Energy was initially capitalized with approximately $13.6 million of equity capital, which included approximately $9.5 million of cash and a contribution of technology from ZBB to Meineng Energy via a license agreement valued at approximately $4.1 million by the company. The post-closing valuation of the above mentioned financing increases Meineng’s valuation to $42 million from $13.6 million.
Meineng Energy, incorporated in December 2011, has built a world-class assembly, test, development and sales operation. Meineng has positioned itself as an innovative storage solutions provider for improvement of renewable energy efficiency, and has also widely penetrated the advanced micro grid markets. Meineng has optimized their supply chain and completed the knowledge transfer required to build energy storage and power electronics platforms, well positioning them to capitalize on China’s volume deployment of energy storage for renewable energy.
“ZBB continues to work very closely with Meineng on product development, manufacturing and testing. Meineng is both a highly valued strategic supplier and customer”, said Eric Apfelbach, Chief Executive Officer of ZBB Energy. “The relationship is very synergistic for both entities.”
Shenzhen Oriental Fortune Capital Co., Ltd. (“OFC”) is a premier venture capital firm founded in 2006. They are headquartered in Shenzhen, with offices in Shanghai, Beijing, Wuhu and Xi’an. OFC has an accumulated management fund of over 10 billion RMB since its establishment. Investment is in areas of Clean Technology, Information Technology, Healthcare, Education, Advanced Manufacturing and Consumer Products, and has invested in more than 130 companies, with 28 exiting through IPO or M&A.
“We are very happy to have OFC become part of Meineng Energy”, said Brad Hansen, President of ZBB Energy and CEO of Meineng Energy. “OFC has a proven track record of investing in key markets and companies, and being able to help their invested companies achieve success in the China market. Meineng selected OFC as an investor because of their excellent capability to help the company grow in the China market.”
About ZBB Energy Corporation
ZBB Energy Corporation (NYSE MKT: ZBB) designs, develops, licenses and manufactures advanced energy storage and power electronics systems, as well as engineered custom and semi-custom products targeted at the growing global need for distributed renewable energy, energy efficiency, power quality, and grid modernization. ZBB’s portfolio includes integrated power management platforms that combine advanced power and energy controls plus energy storage to optimize renewable energy sources and conventional power inputs for grid connected and off-grid applications. ZBB’s innovative platforms solve a wide range of electrical system challenges in global markets for utility, governmental, commercial, industrial and residential customers. In addition, the platforms ensure optimal efficiencies today, while offering the flexibility to adapt and scale to future requirements. ZBB’s corporate offices, engineering and development, and production facilities are located in Menomonee Falls, WI, USA with a research facility also located in Perth, Western Australia. ZBB has a joint venture with Meineng Energy, a provider of leading-edge energy storage systems and solutions to the greater China market. For more information, visit: www.zbbenergy.com.