Benzinga | Jan 20, 2022 08:34AM EST

iPower Announces Launch Of New E-Commerce Logistics Joint Venture, Box Harmony; iPower To Contribute $50,000 For 40% Equity Interest With Option To Purchase Additional 20%

iPower Inc. (NASDAQ:IPW) ("iPower" or the "Company"), one of the leading online hydroponic equipment suppliers and retailers, has entered into a joint venture ("JV") with certain individuals and Titanium Plus Autoparts, Inc, one of the largest sellers of collision related auto parts on eBay and Amazon, to create a full service e-commerce logistics company, Box Harmony LLC ("Box Harmony").



Under the terms of the agreement, iPower will contribute $50,000 for a 40% equity interest in the JV with an option to purchase up to an additional 20%, for a maximum 60% equity interest.

Box Harmony provides iPower with a low-cost option to expand into e-commerce value chain services, which is a natural fit for the Company given its proven e-commerce expertise in the hydroponic equipment category. The JV will supplement iPower's future growth by providing logistics services for international brands looking to grow their respective business in the US, while also providing iPower with additional supply chain efficiencies for its own core hydroponics business.

"The e-commerce logistics market is a mature but growing industry that has experienced significant disruption over the past several years," said iPower CEO Lawrence Tan. "We are proud to partner with industry leaders as we expand our reach and capabilities to capitalize on this dynamic market environment. We have often stated that our ability to lead the online hydroponics category is a function of our e-commerce expertise, and we are now leveraging that expertise to bolt on new service offerings to supplement our future growth, while driving further efficiencies in our core business."

The joint venture became effective January 14, 2022.