Ideanomics Gathers Steam on Buying Deeper into Solectrac
November 27, 2020 at 09:54 AM EST
Friday, November 27, 2020 Ideanomics Gathers Steam on Buying Deeper into Solectrac Ideanomics, Inc. (NASDAQ:IDEX) rose Friday, the company this week announcing it recently increased its stake in e-tractor company Solectrac through a $1.3-million follow-on investment. This additional investment reflects investment interest in Solectrac by ESG funds which is expected to close in the coming weeks. In October, the Company announced that it acquired 14.7% of Solectrac, Inc. for the consideration of $1.3 million . Since this announcement, Solectrac experienced an increase in product and investment inquiries. This recent investment increases Ideanomics ownership to 24%, which will reduce to approximately 22% post-money once the additional third-party investment is finalized. The new investment by Ideanomics allows Ideanomics to increase its share of ownership sufficiently to recognize its stake in Solectrac under the equity method for US GAAP accounting purposes. "We believe Solectrac has enormous potential and, given the uptick in both product inquiries and investment interest they are seeing, we exercised our rights to increase our stake so we can help Solectrac scale to meet anticipated market demand," said Ideanomics CEO Alf Poor. Solectrac develops, assembles and distributes 100% battery-powered electric tractors—an alternative to diesel tractors—for agriculture and utility operations. Founded in 2012 to take electric tractors into commercial production, Solectrac was incorporated as a California Benefit Corp in 2019. It has received grants from the Indian U.S. Science and Technology Fund and the National Science Foundation. IDEX shares gained 24 cents, or 8.9%, to $2.95.