Promising restart: Sono Motors signs investor deal for its solar integration business, on its path to finalizing restructuring
- Securing new funding commitments will enable Sono Motors to restructure and continue its solar integration business, positioning the company for a promising new start.
- The majority of employees returning after being given notice at the end of October demonstrates a high level of motivation and dedication within the company.
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- Solar technology company Sono Motors looks to the future with new funding commitments
- Investor deal positions Sono Motors to obtain sufficient financing for business operations through at least the end of 2024
- Vast majority of employees that were given notice at the end of October as part of the insolvency proceedings are back on board
- Restart supported by a completely new management team of Sono Motors GmbH
- Sono Motors expects it will emerge stronger from insolvency proceedings and can now fully focus on realizing its vision of "solar on every vehicle"
MÜNCHEN, Germany, Nov. 27, 2023 (GLOBE NEWSWIRE) -- Sono Motors, the Munich-based solar technology company, today announces the signing of investment agreements with YA II PN, Ltd. (“Yorkville”), which are expected to enable the company to restructure itself, emerge from its self-administration proceedings that have been ongoing since May 2023 and continue its solar integration business. Subject to the fulfillment of certain conditions precedent, this deal positions Sono Motors to obtain sufficient financing for its business operations until at least the end of 2024. Closing of the investment with Yorkville and conclusion of the insolvency proceeding are currently expected in late January 2024.
"The last few months have been exhausting for everyone at Sono Motors, but at the same time incredibly instructive. Now it's time to turn what we've learned into success. Our experienced team is eager to continue working toward our vision and has surpassed itself and grown even closer together over the last few months. We believe the agreement with Yorkville gives us the opportunity for a promising new start," says Jan Schiermeister, who currently serves as Sono Motors’s Head of Technology. The company's restart goes hand in hand with a complete restructuring of Sono Motors' management team – Mr. Schiermeister is among those, currently designated as members of Sono Motors’ future management team, all of whom played key roles in shaping the company’s Mergers & Acquisitions process. Following the closing of the investment with Yorkville, the company looks forward to once again fully devoting itself to its mission of establishing itself and its proprietary solar solutions in the B2B segment.
Following the signing of the investor deal, Sono Motors has in recent days been able to offer all employees, who were given notice at the end of October, re-employment, which has already been accepted by the majority of the workforce. "I see this great willingness to return as a clear sign of an exceptionally high level of motivation and dedication. These employees are the backbone of Sono Motors and I strongly believe that together we can all emerge stronger from the expected conclusion of the self-administration proceedings," Mr. Schiermeister continued.
The first priority is now the market launch of the Solar Bus Kit, a solar retrofit solution specially developed by Sono Motors for diesel and electric buses to significantly reduce their CO2 emissions. In addition, Sono Motors will continue to drive forward the development and marketing of its unique solar integration technology, which can sustainably power a wide range of vehicle applications, such as refrigerated vehicles, last-mile delivery vans and passenger cars, and thus make a significant contribution to the climate and mobility transition.
Despite the ongoing self-administration proceedings, Sono Motors continued to establish new and strengthen existing customer relationships throughout 2023, and recently deepened its collaboration with one of the 10 largest vehicle manufacturers in the world by signing a new service agreement. Since March 2023, the total number of customers and partners for Sono Motors’ solar technology has increased from 25 to 28.
ABOUT SONO MOTORS GMBH
Sono Motors has made it its mission to fundamentally revolutionize global mobility. The company's mission is to equip every vehicle with solar cells. The company's groundbreaking proprietary solar technology is designed to be seamlessly integrated into a wide range of vehicle types – including cars from third-party OEMs, buses, refrigerated vehicles and RVs – to increase ranges, lower fuel costs and reduce CO2 emissions, paving the way for climate-friendly mobility.
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FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. The words "expect," "anticipate," "intend," "plan," "estimate," "aim," "forecast," "project," "target," “will” and similar expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regarding the intentions of Sono Motors GmbH and Sono Group N.V. (together, the “companies”) intentions, beliefs, or current expectations. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and could cause the actual results, performance or achievements of the companies to differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and assumptions include, but are not limited to, risks, uncertainties and assumptions with respect to: our expectations regarding the companies’ self-administration proceedings, the outcome of which is uncertain; the companies’ ability to maintain relationships with creditors, suppliers, customers, employees and other third parties as a result of the self-administration proceedings and the related increased performance and credit risks associated with the companies’ constrained liquidity position and capital structure; the companies’ ability to successfully fulfill the conditions precedent to the closing so as to gain access to the funding offered in the current investor deal; Sono Group N.V.’s ability to maintain its stock exchange listing; and the length of time that Sono Group N.V. and Sono Motors GmbH continue to operate under the self-administration proceedings. Many of these risks and uncertainties relate to factors that are beyond the companies’ ability to control or estimate precisely, such as the actions of courts, regulatory authorities and other factors. Readers should therefore not place undue reliance on these statements, particularly not in connection with any contract or investment decision. Except as required by law, the companies assume no obligation to update any such forward-looking statements.
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