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Lead Acid Focus - Improvements in TechnologyMar 2 2020
Integral Battery Technology Well Placed For Expansion Of MarketFeb 25 2020
FAQ regarding the recent press release 'Pivotal Battery Corp. Completes Purchase of Bipolar Battery Technology'Oct 7 2019
Since the press release from Pivotal Battery last Friday, we have received questions in regards to the transaction and relationship between Integral Technologies, Inc. and Pivotal Battery Corp. Please find below our answers to your questions:
Where can the details of the Pivotal Battery transaction be found?
The details can be found in Integral Technologies, Inc’s two 8-k filings.
Where can I find the press release from Pivotal Battery?
What are the financial terms?
Pivotal will pay Integral $2 million. $200,000 upfront in addition to a $1.8 million dollar note. Integral will also receive 1.5 million shares of Pivotal Battery common stock. This represents a 15% ownership stake in Pivotal for Integral.
What other benefits are there for Integral?
For a 10 year term, Integral will be the exclusive supplier of conductive plastic used for the production of all Pivotal’s bi-polar plates.
Pivotal will also pay Integral the following royalty rates for a 10 year term from the sale of bipolar plates:
- Years 1-4: 5%
- Years 5-7: 4%
- Years 8-10: 3%
Why is the supplier agreement and royalties important?
With each plate produced, Integral will benefit from the sale of material to Pivotal as well as receiving a royalty for each plate sold.
Why did Integral receive shares of Pivotal?
We believe there is significant upside to Pivotal and believe it is important to maintain an ownership position to allow for ITKG to participate in the upside.
We spoke with various groups and companies and Pivotal most shared our vision for how to pursue the bipolar market, and they offered the best terms that were executable.
Who is Pivotal?
Pivotal was formed for the purpose of pursuing lead acid bipolar battery technology. It is comprised of financial and battery professionals that have the vision for fully exploiting the use of ElectriPlast in the next generation of bipolar batteries.
Why didn’t Integral just do the commercialization themself?
One thing we learned from the commercialization of ElectriPlast for shielding is that it is capital intensive and often time’s commercialization takes longer than planned. We’ve been consistent in saying that we want to monetize the battery technology. We feel this is the best way to do that and at the same time, shift the capital costs of commercialization to Pivotal rather than burden Integral with it. Also, Pivotal has one focus and that is to move the battery technology forward.
Why did you opt for a note instead of all cash?
This is consistent with what we’ve been saying the last couple of years. Our goal is to structure a transaction that will provide for the operating expenses of Integral. The note is structured in a such a way that it should provide for the majority of Integral’s operating expenses, thus limiting or eliminating Integral’s need to go to the market for additional capital which we have found to be very expensive.
What do you think Pivotal stock is worth?
Pivotal is presently completing a capital raise at $1.00 per share. This values Integral’s 1,500,000 shares at $1.5 million.
What did Pivotal get?
They received our two pending patents on our bipolar battery plate as well as all our know how in the making of the plates. We also transferred the JTAP that we had with Advanced Battery Concepts to them. Our engineering team will continue to be a vital part of the continuing development.
Now that we’ve sold the battery technology, what’s left?
We now have long-term revenue streams via license agreements with PolyOne and Hanwha, a supply agreement and a royalty stream with Pivotal as well as an ownership stake in Pivotal. We still maintain all our rights to the non-shielding portion of our patent portfolio that we have yet to monetize; that would include; heating devices, antennas, fuses, etc. We also maintain all our rights in the manufacture of ElectriPlast for use in battery applications, which can be licensed to any manufacture, including PolyOne.
It took forever for ElectriPlast to commercialize, why shouldn’t I think the same is true for the battery technology?
In the case of commercializing ElectriPlast for shielding, we were creating a market. Our technology was sound but we were years ahead of the market, now the market is ready for ElectriPlast for EMI shielding which was proven by the license agreements with PolyOne and Hanwha. Using ElectriPlast for batteries is a totally different scenario, in batteries we’re improving a product, lead acid batteries, that is accepted globally. However, the technology is dated and losing market share to newer battery chemistries. Pivotal is working with Advanced Battery Concepts, a leader for bipolar batteries with their six (6) licensees, to meet the global demand for better lead acid batteries.
Are there any people left at Integral it looks like they’ve all gone to Pivotal?
Yes, the team remains at Integral. However some people are also doing work for Pivotal, which helps us lower our operating cost, without the loss of capability at Integral.
Is Pivotal doing anything with the technology?
Yes, even prior to the completion of the technology purchase, Pivotal was advancing the plate technology.
Why is the note a convertible note, is this good for Integral?
It gives us economic options. The conversion of the note is preset to $1.00 per share, therefore, if the value of Pivotal stock increases, ie the next capital round is greater than $1.00 per share, by converting into shares, we will have increased our value by exercising the conversion option.
The terms of the agreement allow for Integral shareholders to buy in to Pivotal. Why is this?
Because many of our shareholders expressed a great interest in the battery assets. We were insistent that our shareholders were given the opportunity to invest directly in Pivotal. Pivotal in turn allowed for a small percentage of Pivotal be made available to Integral shareholders.
Is there still an allotment of shares remaining for Integral shareholders?
Several have Integral shareholders took advantage of the opportunity and invested directly into Pivotal. There may still be some of the allotment remaining. Those questions should be directed to Pivotal at email@example.com.
If this is such a good idea why aren’t the battery companies beating your door down?
Pivotal Battery Issues Press Release for Signing Battery Deal with Integral TechnologiesOct 4 2019
Pivotal Battery Corp. Completes Purchase of Bipolar Battery Technology
At the center of Pivotal’s battery is the conductive material, ElectriPlast, a proprietary hybrid polymer that combines metalized carbon fiber in a polymer pellet that gives Pivotal’s bipolar plates enhanced mechanical strength and electrical conductivity resulting in a battery that is significantly lighter than a conventional lead acid battery. Pivotal’s bipolar plate architecture reduces the number of plates in the battery, and the stacked cell configuration eliminates the need for bus bars, further reducing the overall weight of the battery. Pivotal’s bipolar plates are injection molded which support’s the company’s low cost, large volume production strategy. The hybrid polymer bipolar plate allows for greater design flexibility for manufacturers desiring new battery form factors for their products.
“We’re delighted to complete this acquisition and already working with our engineering partner to finish our battery and bring it to market,” stated Richard Bogan, Pivotal’s Managing Director. “Our initial focus is in advanced battery applications in the $40 billion lead acid battery market, including stop-start applications in automotive, as well as batteries for the micro vehicle market and other low-speed electric vehicles. The stationary market is also an important sector with a focus on telecom and grid storage applications. A key driver to our success will be the positive impact our batteries will have on the environment since our batteries will be fully recyclable.”
The acquisition of the Technology also forms an important, long-term strategic alliance with Integral. As per the terms of the transaction, Integral will obtain an equity position in Pivotal and will also be the exclusive supplier of ElectriPlast for ten (10) years, with follow-on renewal options.
“We’re excited about this sale and the new long term relationship it creates with Pivotal,” stated Doug Bathauer, Integral’s CEO. “The sale not only provides us with current revenue, it also gives us another revenue source from future sales of our ElectriPlast line of conductive plastic needed to manufacture the bipolar battery.”
Pivotal’s patented (pending) bipolar plate design and manufacturing processes enables the production of low cost bipolar batteries at large volumes to support the fast growing, global demand for battery power. Pivotal is targeting a variety of markets, including: automotive, personal transportation, logistics equipment, military, telecom, utilities, marine, and UPS. To learn more, visit: www.pivotalbattery.com
Integral Technologies Inc. announces contract for transfer of battery technology with Pivotal Battery Corp.Sep 11 2019
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