Benzinga | Sep 23, 2021 08:04AM EDT

Ault Global Reports $2.25M Investment In Unique Electric Solutions For 7% Stake In Co., Investment Can Increase To 10% Upon Exercise Of Warrants

Ault Global Holdings, Inc. (NYSE:DPW), a diversified holding company (the "Company" or "AGH"), announced today that it has invested in Unique Electric Solutions, Inc. ("UES"), a privately held developer of Electric Vehicle ("EV") propulsion systems for commercial trucks and school buses. The investment will enable UES to increase production while diversifying into adjacent markets. Moreover, AGH's subsidiary, TurnOnGreen, Inc. ("TurnOnGreen"), will work with UES to provide commercial EV charging stations and fleet management software solutions to UES and its customers.

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UES manufactures EV and fuel cell electric vehicle ("FCEV") propulsion systems for medium and heavy-duty trucks, transit, and school buses. Its uniqueEV(r) platform, driven by proprietary machine-learning software, has been field-proven through performing daily service for United Parcel Service ("UPS") in New York City and California since 2018. In addition, UES has secured contracts with two of New York City's largest school bus operators to convert (repower) their school buses to electric propulsion.

AGH invested $2.25 million for a 7% stake in UES, which can increase to 10% upon the exercise of warrants acquired by AGH. In addition, AGH has the right to participate up to 50% of any future investment by third parties in UES during the next two years. AGH and UES agreed that when UES achieves higher-volume orders for its EVs, they will look to enter into a long-term lease for manufacturing space at an AGH manufacturing facility.

The Company's investment will enable UES to increase output of repowered vehicles, address a backlog of pending orders and accelerate the introduction of new EVs while diversifying into strategic market adjacencies (e.g., captive battery manufacturing). This partnership will allow TurnOnGreen, a supplier of EV chargers and energy storage systems, to accelerate expansion of services into new vertical markets, including federal, state, and municipal bus fleets along with last-mile delivery service fleets like UPS and other package and food delivery companies.

Milton "Todd" Ault, Executive Chairman of AGH, stated, "We are pleased to invest in UES, which has a proven track record of delivering efficient solutions to premier fleets like UPS and Logan. We expect this strategic investment and partnership will dramatically accelerate UES' production and catalyze numerous high-growth synergies with TurnOnGreen, unlocking significant value for our stockholders."

Joseph "Joe" Ambrosio, CEO of UES stated, "AGH's investment will help accelerate the processing of our current $5 million backlog. This is a game-changer for us. We've been exploring the capital markets for some time and found a strategic investor and partner to take us to the next level. The AGH team speaks our language, and we will hit the ground running on bundling their TurnOnGreen Level 2 and Level 3 electric vehicle charging equipment and fleet management software platform with UES's repower kits."

"Partnering with UES to deliver EV charging and fleet management logistics provides TurnOnGreen an enormous opportunity to address the electrification needs of the thousands of school districts and municipalities in North America who are committed to the electrification of their bus fleets and meeting the Zero Emission Vehicle goals of their respective regions," said Marcus Charuvastra, Chief Revenue Officer at TurnOnGreen.