SPI Energy announces JV to explore agriculture business
SPI Energy announced SPI Investments Holding, one of the company's wholly subsidiaries, Jacky Lo, and Harbor Green Grain, entered into a series of agreements to form a joint venture incorporated in the Cayman Islands tentatively named Knight Holding to explore the agriculture business for productions, sales or marketing of cotton, Alfalfa and other related agriculture products. Under the terms of the Agreements, KHC will issue to Jacky Lo shares representing a 40% equity stake in KHC while SPI Investments will hold a 60% equity stake in KHC, and for Mr. Lo to contribute to KHC the equity of an entity in Arizona and certain assets including, but not limited to, a press machine, warehouse and equipment, as a consideration for the Issuance, subject to satisfaction of the certain closing conditions, including: 1) the formation of KHC; 2) the completion of transfer of Arizona Equity, and 3) the completion of transfer of Assets. Following the formation of Joint Venture and the closing of Issuance, SPI Investments shall provide such further reasonable assistance to KHC to enable the Joint Venture to build the storage warehouse in Arizona and develop solar power projects of up to 5MW capacity on site. SPI Investments shall contribute to KHC cash in the amount of $500,000 as its initial investment. If and when the Joint Venture becomes profitable based upon generally accepted accounting principles and cash flow positive based upon its actual cash flows, SPI Investments may contribute additional capital to KHC to fund the operation of KHC; provided, however, such additional capital contribution shall not exceed $1.5M in the aggregation.