CAMPBELL, CA
-- April 03, 2019 -- InvestorsHub
NewsWire -- KULR Technology Group, Inc. (OTCQB: KUTG), (the “Company” or
“KULR”), today announced it has entered into a purchase agreement
to acquire TECHTOM Ltd. (“TECHTOM”), a leading provider
of automotive telematics solutions and electrical vehicle battery
management technology in Japan.
“Two of the most important
components of E-Mobility are energy and data,” said Michael Mo, CEO
of KULR. "With this acquisition, KULR is one step closer to our
mission of becoming a leading technology solutions platform company
for E-Mobility, which we believe is one of the most significant
technology markets for the next twenty years.”
Subject to various closing
conditions, upon consummating the acquisition, TECHTOM will deliver
KULR the following technology and business synergies to address
customers’ needs in energy and data management for their next
generation E-Mobility applications:
- Integration of software and
hardware battery management systems (BMS) with high performance
space-qualified battery safety and thermal management
technology
- Collaboration on electric
vehicle conversions towards E-buses and other electric public
transportation vehicles
- Development of next
generation telematics devices to serve the ride-sharing and
car-sharing applications
- Access to the Japanese
automotive market for KULR products
- An IP portfolio of 21
granted and 12 pending patents held by TECHTOM, and 8 granted and 7
pending patents held by KULR
These synergistic
advantages establish the foundation for positioning the combined
entities as key competitors in the growing global electric vehicle
and E-Mobility markets. According to Frost &
Sullivan’s Global Electric Vehicle Market
Outlook 2018, global EV sales will climb from 1.2
million units in 2017 to approximately 2 million units in 2019.
According to a 2018 JP Morgan
report, by 2025 and 2030, 32% and 59% of total
automobile sales, respectively, will come from EV (including
hybrids).
The mobile charging
infrastructure market alone, which includes batteries and battery
technology, according to an AT Kearney report, will
be a $29 billion global market by 2020 within the overall $390
billion global E-Mobility market. At the same time, the telematics
market is forecast to grow to $230 billion by 2025. As the 260
million vehicles on the road in North America continue to age,
aftermarket telematics will play a large role for insurance
providers, ride-sharing applications, and other market segments
such as road safety and fuel and routing
optimization.
“By leveraging decades of
experience, a deep reserve of intellectual property and the product
successes of TECHTOM, KULR expands its technology portfolio from
space-qualified battery safety and thermal management technology to
integrated hardware and software battery management systems and
vehicle telematics systems,” said Mo. “With our combined resources,
KULR will be able to serve customers with technologies that measure
performance, detect mobility challenges and deliver a safer and
more energy-efficient product to the end user.”
TECHTOM’s CEO Naoki Tomita
said, “We are honored to join the KULR family with their history
and success in space thermal management design, and to share our
ideas and technologies to enhance E-Mobility solutions for our
major clients and their customers.” TECHTOM has more than 20,000
devices in operation in the Japan and Southeast Asia markets. Its
devices have been deployed for vehicle and fleet management by
Softbank, Nissan, Honda, NEC, Orix and major insurance
companies.
KULR also
recently announced the
patent of its thermal runaway shield (TRS), which has been proven
to reduce the risks of lithium-ion battery explosions due to
thermal runaway. KULR also announced that it became the exclusive
provider of the internal short circuit (ISC), developed by
researchers at the National Renewable Energy Lab (NREL) and NASA.
The ISC device is key to studying and preventing serious battery
failures. KULR also recently announced a partnership
with French battery maker,
Saft, to develop safer
batteries.
Although KULR continues its
due diligence over TECHTOM and its historical financial data, it
has been reported to KULR that TECHTOM recognized revenues of
approximately $2.35 million for its fiscal year ended April 30,
2018 and, although no assurances can be made, it forecasts its FY
2019 revenue to be in the range of $4.5 million to $5 million.
Details about the terms of KULR’s acquisition of TECHTOM will be
detailed in KULR’s Current Report on Form 8-K filed on or around
the date of this release.
As part of the agreement,
TECHTOM shareholders will receive the following aggregate
acquisition price: (i) $1,750,000 cash consideration (which is
subject to certain escrowed indemnification hold backs); and (ii)
one hundred (100) shares of KULR's Series C Convertible Preferred
Stock (which shares have an aggregate stated value of $1,000,000
and are convertible into 2,000,000 shares of KULR's common stock).
Closing of the acquisition is subject to customary closing
conditions including the delivery of audited financial
statements.
Aegis Capital Corp. is acting as lead
financial advisor to KULR in the acquisition of TECHTOM
and Sichenzia Ross Ference LLP as legal
counsel to KULR.
About KULR
Technology Group, Inc.
KULR Technology Group, Inc., through its wholly-owned subsidiary
KULR Technology Corporation ("KTC"), develops and commercializes
high-performance space-used thermal management technologies for
electronics, batteries, and other components across an array of
applications such as electric vehicles and autonomous driving
(collectively as E-Mobility), AI/Cloud computing, energy storage,
and 5G communication technologies. KULR's proprietary, core
technology is a carbon fiber material with roots in aerospace and
defense that provides superior thermal conductivity and heat
dissipation in an ultra-lightweight and pliable material. By
leveraging this break-through cooling solution and its longstanding
development partnerships with NASA, the Jet Propulsion Lab and
others, KULR makes E-Mobility and other products cooler, lighter,
and safer. https://www.kulrtechnology.com
About
TECHTOM:
TECHTOM., Ltd., is a telematics company that analyzes automotive
control systems and provides on-board diagnostic services and
solutions including various Intelligent Transport System devices
for vehicle management services. With 30 years of experience
specializing in car electronics, TECHTOM has solved a variety of
problems within the sector, in particular, technology for
information acquisition from vehicles. TECHTOM's proprietary
technology currently supports approximately 1,600 vehicle models
and has over 20,000 devices in operation in Japan and Southeast
Asia markets.
http://www.TECHTOM.co.jp/en
Safe Harbor
Statement
This release does not constitute an offer to sell or a solicitation
of offers to buy any securities of any entity. This release
contains certain forward-looking statements based on our current
expectations, forecasts and assumptions that involve risks and
uncertainties. Forward-looking statements in this release are based
on information available to us as of the date hereof. Our actual
results may differ materially from those stated or implied in such
forward-looking statements, due to risks and uncertainties
associated with our business, which include the risk factors
disclosed in our parent entity’s Form 10-K filed on March 29, 2019.
Forward-looking statements include statements regarding our
expectations, beliefs, intentions or strategies regarding the
future and can be identified by forward-looking words such as
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "should," and "would" or similar words. We assume no
obligation to update the information included in this press
release, whether as a result of new information, future events or
otherwise.
KULR Technology Group, Inc.
ContactL Derek Newton, Head Media Relations
(786) 499-8998