ZeroNox, a Leader in Off-Highway Electrification of Commercial and Industrial Vehicles, to Become First Public Company of its Kind, Through Merger with The Growth for Good Acquisition Corporation
ZeroNox, a provider of sustainable off-highway vehicle electrification, is set to become the first publicly listed company in this sector through a merger with Growth for Good Acquisition Corporation (NASDAQ: GFGD). The transaction values ZeroNox at $306 million and will allow its shares to trade under the ticker symbol ZNOX. With a total addressable market estimated at $1.3 trillion, ZeroNox targets industries like agriculture and construction. The company has shown impressive growth, achieving a revenue CAGR of over 200% over the last three years, and is projected to generate $180 million in contracted revenue as it scales its operations.
- Projected revenue of ~$180 million from existing contracts.
- Strong CAGR of over 200% in revenues over the past three years.
- First mover advantage in the off-highway electric vehicle market.
- Enterprise value of $306 million for ZeroNox enhances market position.
- Asset-light business model with low capital expenditure needs.
- Risks associated with the completion of the transaction may affect stock price.
- Dependence on OEM and fleet relationships for substantial revenue growth.
- Strong business fundamentals and path to rapid scale due to proprietary electric powertrain platform (“ZEPP”) with lithium-iron phosphate (“LFP”) battery as well as significant OEM and fleet partnerships
- Purpose-built business model to be capital efficient and profitable
- First mover advantage in meeting the large, growing and underserved demand for electric off-highway vehicles
- Revenue generating with proprietary, proven technology, and strong partner manufacturing and distribution capabilities
- Contracted sales providing revenue visibility
- Asset-light business with low Capex cash needs to reach positive EBITDA
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Advancing the
Sustainable Development Goals , DGs 7, 9 and 13 -
Transaction represents enterprise value of
for ZeroNox$306 Million
Solving the Pain Points of Scalable Off-Highway Vehicle Electrification
The transportation sector is responsible for one-quarter of all global greenhouse emissions and one-third of all emissions in
ZeroNox’s product suite and partnership strategy – including its proprietary electric powertrain technology (“ZEPP”), partnerships with OEMs and fleet owners, and infrastructure support – provide the solution to these pain points and more.
As the preeminent electrification partner focused on the off-highway electric vehicle (“OHEV”) market, ZeroNox is at an inflection point for significant growth, unlocking the potential for off-highway electrification to reach scale. The Company’s total addressable market is estimated at
ZeroNox has three complementary business verticals:
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ZEPP: The ZEPP was expressly designed to offer a flexible and scalable solution, and to do so by partnering with rather than competing with, existing internal combustion engine (“ICE”) OEMs. The LFP batteries in the ZEPP are ~
30% more efficient and offer 4x the life cycle of lead-acid peers standard in industry9, and the ZEPP’s unique telematics software allows OEMs and fleets to electrify or upgrade their equipment and vehicles as well as remotely monitor, manage and service their off-highway vehicles. -
EV Distribution: Through a network of dealership locations, ZeroNox strategically distributes its partners’ EV products into targeted, underserved areas. Today ZeroNox distributes through ~50 dealerships, however recent contracts have expanded this channel to nearly 1,500 dealership locations across
the United States . - EV Infrastructure Support: To strengthen its value proposition to OEM and fleet partners, ZeroNox provides vital infrastructure support, including renewable microgrids, charging stations, and energy storage systems to its partners.
The “Powered by ZeroNox” brand can be seen on fleets operating with customers such as Bayer, Universal Orlando,
Management Comments
Following the close of the proposed transaction,
Capital Efficient and Clear Path to Profitability
Unique from most other EV de-SPACs, ZeroNox has purpose built its business model to be capital efficient. When compared to its
Transaction Overview
The proposed transaction, which is expected to close in the second half of 2023 subject to the satisfaction of customary closing conditions, including the approval of Growth for Good’s shareholders, has been unanimously approved by the Boards of Directors of both ZeroNox and Growth for Good.
Pursuant to the Merger Agreement among Growth for Good, the Company, and
Additional information about the proposed transaction, including a copy of the Merger Agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by Growth for Good today with the
Advisors
Conference Call Information
ZeroNox and Growth for Good will host a joint investor conference call to discuss the proposed transaction and review the investor presentation today,
A live webcast of the conference call and associated presentation materials will be accessible here. A replay of the webcast will be available after completion of the conference call here.
About ZeroNox
ZeroNox is leading the electrification of off-highway commercial and industrial vehicles, with best-in-class LFP batteries and an electric powertrain (“ZEPP”) that is cleaner, high performing, and cost effective. As a first mover in the advanced off-highway electric vehicle (OHEV) powertrain market, ZeroNox is proudly designed and engineered in America, with offices in
For more information, visit: https://www.zeronox.com and follow us on Twitter @ZeroNoxInc and https://www.linkedin.com/company/zeronox/
The information contained on, or accessible through, ZeroNox’s website is not incorporated by reference into this press release, and you should not consider it a part of this press release.
About The
The
For more information, visit: https://www.g4ginvestment.com and https://www.linkedin.com/company/growth-for-good-acquisition-corp/
The information contained on, or accessible through, The Growth for Good Acquisition Corporation’s website is not incorporated by reference into this press release, and you should not consider it a part of this press release.
Additional Information about the Proposed Transaction and Where to Find It
In connection with the proposed transaction, Growth for Good intends to file a registration statement on Form S-4 (the “registration statement”) with the
Investors and security holders will be able to obtain free copies of the registration statement and the proxy statement/prospectus (if and when available) and all other relevant documents that are filed or that will be filed with the
Participants in the Solicitation
Growth for Good and ZeroNox and certain of their respective directors, executive officers and other members of management and employees may, under
No Offer or Solicitation
This press release and the information contained herein do not constitute (i) (a) a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed transaction or (b) an offer to sell or the solicitation of an offer to buy any security, commodity or instrument or related derivative, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction or (ii) an offer or commitment to lend, syndicate or arrange a financing, underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction, or commit capital, or to participate in any trading strategies. No offer of securities in
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws with respect to the proposed transaction between Growth for Good and ZeroNox. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) actual market adoption and growth rates of electrification technologies for commercial and industrial vehicles; (ii) ZeroNox’s ability to convert trial deployments with truck fleets into sales orders; (iii) delays in design, manufacturing and wide-spread deployment of ZeroNox’s products and technologies; (iv) failure of ZeroNox’s products to perform as expected or any product recalls; (v) ZeroNox’s ability to expand its relationships with OEMs and fleet owners, and its distribution network; (vi) ZeroNox’s ability to develop vehicles of sufficient quality and appeal on schedule and on large scale; (vii) ZeroNox’s ability to raise capital as needed; (viii) management’s ability to manage growth; (ix) the macroeconomic conditions and challenges in the markets in which ZeroNox operates; (x) the effects of increased competition in the electrification technology business; (xi) ZeroNox’s ability to defend against any intellectual property infringement or misappropriation claims; (xii) the risk that the transaction may not be completed in a timely manner or at all, which may adversely affect the price of Growth for Good ’s securities, (xiii) the risk that the transaction may not be completed by Growth for Good ’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by Growth for Good, (xiv) the failure to satisfy the conditions to the consummation of the transaction, including the adoption of the Merger Agreement by the shareholders of Growth for Good and the receipt of certain governmental and regulatory approvals, (xv) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement, (xvi) the effect of the announcement or pendency of the transaction on ZeroNox’s business relationships, operating results and business generally, (xvii) risks that the proposed transaction disrupts current plans and operations of ZeroNox and potential difficulties in ZeroNox employee retention as a result of the transaction, (xviii) the outcome of any legal proceedings that may be instituted against ZeroNox or against Growth for Good related to the Merger Agreement or the proposed transaction, (xix) the ability to maintain the listing of Growth for Good’s securities on a national securities exchange, (xx) the price of Growth for Good’s securities may be volatile due to a variety of factors, including changes in the competitive industries in which Growth for Good plans to operate or ZeroNox operates, variations in operating performance across competitors, changes in laws and regulations affecting Growth for Good’s or ZeroNox’s business and changes in the combined capital structure, (xxi) the ability to implement business plans, forecasts, and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities, and (xxii) the risk of economic downturns and a changing regulatory landscape. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Growth for Good’s registration on Form S-1 (File No. 333-261369), the registration statement on Form S-4 discussed above and other documents filed by Growth for Good from time to time with the
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8
9
10 Based on client provided information on performance from
11 Represents the average for all closed EV-related de-SPACs with revenue generating targets during 2021 and 2022.
12 Excludes targets that do not disclose revenue projections for the year of de-SPAC.
13 Includes 560 units representing
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For Media:
212 257 4170
as@gasthalter.com / sw@gasthalter.com
For Investors:
ZeroNox
robertc@zeronox.com
Growth for Good
dana.barsky@g4ginvestment.com
Source: The
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