Business
Pioneer Power Confirms Payment in Full of Notes Related to 2019 Sale of Transformer Business
Additional $6.2 Million in Cash Significantly Bolsters Balance Sheet FORT LEE, N.J., Dec. 28, 2022 /PRNewswire/ -- Pioneer Power Solutions, Inc. (Nasdaq:
About this update from Pioneer Power Solutions, Inc.
[{"type":"text","content":"Additional $6.2 Million in Cash Significantly Bolsters Balance Sheet\nFORT LEE, N.J., Dec. 28, 2022 /PRNewswire/ -- Pioneer Power Solutions, Inc. (Nasdaq: PPSI) (\"Pioneer\", \"Pioneer Power\" or the \"Company\"), a leader in the design, manufacture, service and integration of electrical power systems, distributed energy resources, power generation equipment and mobile electric vehicle (\"EV\") charging solutions, today announced that it received $6.2 million in cash pursuant to the notes receivable from the sale of its transformer business units in 2019.\n\n \n \n \n \n \n \n\n \nIn connection with the sale of Pioneer's transformer business units to Mill Point Capital in August 2019, in addition to mostly cash considerations, Pioneer received two subordinated promissory notes, which accrued interest at a rate of 4.0% per annum, with a final payment of all unpaid principal and interest becoming fully due and payable at December 31, 2022. On December 15, 2022, Pioneer received in excess of $6.2 million, paying the notes in full. As a result, the Company now has approximately $11.0 million in cash on hand.\nNathan Mazurek, Pioneer's Chairman and Chief Executive Officer, said, \"With this transaction complete, Pioneer doubled its cash position and strengthened its debt-free balance sheet. We have built an experienced team and developed a comprehensive suite of solutions to effectively target the growing demand for advanced and flexible EV charging infrastructure. We believe this transaction provides sufficient capital with which to continue to invest in developing and commercializing our revolutionary EV charging and distributed generation solutions through the end of 2023.\"\nAbout Pioneer Power Solutions, Inc. Pioneer Power Solutions, Inc. is a leader in the design, manufacture, integration, refurbishment, service and distribution of electric power systems, distributed energy resources, power generation equipment and mobile EV charging solutions for applications in the utility, industrial and commercial markets. To learn more about Pioneer, please visit its website at www.pioneerpowersolutions.com.\nSafe Harbor Statement: This press release contains \"forward-looking statements\" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be preceded by the words \"intends,\" \"may,...