Citing the administrative burden of being a small, publicly traded company, energy storage supplier Powin Energy Corp. plans to go private through a reverse split of its common stock, executives said in a regulatory filing with the SEC
"After lengthy consideration, the board of directors has concluded that the costs associated with continuing to be a 'public' company are not justified by the benefits," CEO Joseph Lu and President Geoffrey Brown told shareholders in a letter attached to the June 6 filing. As a private company, Powin expects to save roughly $250,000 per year in costs related to SEC reporting requirements while enabling officers and employees "to focus more of their time and effort on improving revenues and efficiencies."
Incorporated in Nevada with its corporate headquarters in Tualatin, Ore., Powin's stock has traded on the over-the-counter venture market, known as OTCQB. It had a market value of $101.4 million as of June 6, the day it disclosed the strategic shift. The company may, however, continue to trade in the pink sheets, it added. In the proposed transaction, stockholders would receive $176 per share after the 100-for-1 stock split. Powin's CEO and his family own the majority of the company's stock.
Powin supplies battery storage systems for commercial, industrial and utility customers. In June, California regulators approved its contract with Sempra Energy subsidiary San Diego Gas & Electric Co. for a 6.5 MW/26 MWh battery storage system expected to be completed by June 2021.
