Global Power Synergy Public Company Limited (GPSC) announced that the Board of Directors Meeting has resolved to approve the investment through the company’s newly set-up subsidiary by way of capital increase in Anhui Axxiva New Energy Technology Co.,Ltd. (AXXIVA), which operates a battery manufacturing business in the People’s Republic of China at production capacity of 1 GWh per annum using technology license of 24M Technologies Inc.. THe total investment is approximately 500 million baht for the acquisition of approximately 11.1% of equity interest in AXXIVA after such capital increase.
In this regard, GPSC has entered into the capital increase agreement with AXXIVA on February 8, 2021. GPSC is in the process of establishing a subsidiary to invest in AXXIVA and the capital increase transaction is expected to be completed in the first quarter of 2021. In this regard, such investment is subject to the satisfaction of the conditions precedent under the Capital Increase Agreement, which includes having obtained an approval from the relevant authority in China.
The investment on this project aligns with GPSC’s strategy on expansion of investment in innovation and technology to create and generate revenue from New S-Curve business corresponding to the fast-moving environment of energy and electricity generation sectors. Additionally, GPSC will be able to capture and expand business collaboration in many areas, including technical knowledge and experience sharing for commercial giga-scale production, co-procurement in electrode active materials and other raw materials and others. This will enhance the competitiveness of GPSC’s battery manufacturing business rapidly.