EnSync Energy terminate its Supply Agreement with SPI Solar

EnSync Energy announced that due to the failure of SPI Solar to meet its purchase obligations under its supply agreement with the Company, the Company has terminated the Supply Agreement.

Pursuant to the Supply Agreement the Company agreed to sell and SPI agreed to purchase energy management system solutions for solar projects and related services having an aggregated total of at least 5 megawatts of energy storage rated power output within the first year of the Supply Agreement, 15 megawatts within the first two years, 25 megawatts within the first three years, and 40 megawatts within the first four years of the Supply Agreement. SPI never made any purchases under the Supply Agreement.

Following the termination of the Supply Agreement, it will no longer be possible for SPI to satisfy the conditions that would have enabled it to convert its shares of the Company’s Series C Convertible Preferred Stock into common stock. Similarly, it will no longer be possible for the warrant to purchase shares of common stock acquired by SPI to become exercisable.