The Company Discusses Being Added to an ETF; Provides Path to Revenue; and Provides Corporate Updates & Highlights
VANCOUVER, BC, April 12, 2021 /CNW/ - Extreme Vehicle Battery Technologies Corp. (the "Company" or "EV Battery Tech") (CSE: ACDC) is pleased to announce it has been added to the Tech Megatrend Exchange Traded Fund (ETF). The Company also provides preliminary revenue guidance and general corporate updates.
Added to the Tech Megatrend ETF
The Company has been added to the HAN-GINS Tech Megatrend ETF (LSE:ITEP, NYSE:ITEK) ("Tech ETF"). The portfolio contains trending public companies in the technology, blockchain and EV / battery sectors.
EV / Battery Tech
Riot Blockchain Inc
Hive Blockchain Technologies Ltd.
Voyager Digital Ltd
Toyota Motor Corp
Galaxy Digital Holdings Ltd.
Plug Power Inc
For a full breakdown see: https://www.hanetf.com/product/3/fund/han-gins-tech-megatrend-equal-weight-ucits-etf-acc
"We are honored to be added to an ETF with a portfolio of such established companies," states EV Battery Tech CEO Bryson Goodwin. "This is a clear sign of a high performing fund showing faith in our team, technology and Company."
Tech ETF is a UCITS compliant Exchange Traded Fund domiciled in Ireland. ITEK tracks the Solactive Innovative Technologies Index (Net Total Return), an index of leading companies that are driving innovation in sectors including robotics & automation, cloud computing & big data, cyber security, future cars, genomics, social media, blockchain and digital entertainment. Tech ETF trades on the following exchanges: LSE (ITEK LN); BORSA (ITEK IM); XETRA (T3KE GY); and SIX (ITEK SW).
The fund is currently targeting growth in the blockchain sub-sector and has recently added 11 new blockchain holdings, up from two (2). For more information, please visit: https://roseferro.com/2021/03/tech-megatrend-etf-rebalances-to-focus-on-more-blockchain-stocks/
24-Month Revenue Guidance
Pursuant to the technology partnership agreement dated February 5, 2021 between the Company, the Company's wholly owned subsidiary IoniX Pro Battery Technologies Inc. ("IoniX Pro"), and Daymak (the "Technology Partnership Agreement"), the Company has the first exclusive right to provide battery products to all of Daymak's products. For further details on the agreement, please refer to the announcement on February 8, 2021. While the batteries themselves are normally sold at prices resulting in margins of approximately 10%, all EVs produced by Daymak are anticipated to be powered by the customized IoniX Pro Lithium-Ion battery pack, which will be equipped with the Company's patented AI-powered battery management system ("BMS"). The BMS will carry higher margins than the batteries and therefore the Company anticipates blended margins of approximately 25%.
Daymak estimates that over 30% of its production cost will be in the battery systems, including the BMS. Since signing the Technology Partnership Agreement, the Company has already received purchase orders for $2 million dollars worth of battery systems, for just its existing LEV vehicles.
On April 6, Daymak made a guidance news announcement. For a full copy of Daymak's press release, please follow this link: news release dated April 6, 2021.
Given Daymak's recent announcement, the Company projects that it could generate revenues of up to $300 million in the next 24 months, from the Daymak partnership. The Company estimates that the costs associated in generating this revenue will be $225 million, resulting in profits of up to $75 million. The Company expects to see significantly higher margins with their retail products compared to the margins from the sales related to the Daymak partnership. The margins associated with Daymak's projections are lower since Daymak is a partner and the sales to Daymak will be at wholesale (as opposed to retail) prices.
"Investors have been calling and asking for clarification on our revenue plans. I am pleased to articulate and demonstrate the importance and magnitude of this very beneficial relationship we have built with Daymak." Commented Bryson Goodwin President and CEO.
"If you look at the EV trends over the last three years combined with clean energy initiatives going on across the globe, Daymak believes it is in a prime position to achieve superior sales," commented Daymak CEO, Aldo Baiocchi.
According to EV-Volumes, EV Sales Volumes have been growing at over 100% month-over-month growth since July of last year.
The Company also continues to build its sales and distribution networks for its line of IoniX Pro Energy Storage Systems (ESS), including:
- the Home SmartWall, for which it expects deliveries to commence in Q4 of 2021;
- the TITAN EnergyCore, for which it expects deliveries to commence in Q3 of 2021;
- the RV Freedom, for which it expects deliveries Q3 of 2021; and
- the EV Smart Charger, for which it expects deliveries to commence in Q1 of 2022.
The Company also continues to develop blockchain platforms, which will serve as the backend infrastructure for the entire IoniX Pro product line up and will be customizable for use for third parties.
"The demand for our IoniX products has been extremely encouraging given they were all launched within the last 3 months," commented IoniX Pro's Chief Innovation Officer, Robert Abenante. "However, this recent partnership with Daymak has been particularly exciting given the rapid increase in orders for our battery systems." continued Mr. Abenante.
The sales and revenue projections are subject to the forward-looking information and risk factors included below. See: "Forward Looking Information" and "Risk Factors".
The Daymak EV line is anticipated to be ready to hit the streets starting in 2022 with Terra Ebike and Tectus Mobility followed by the Spiritus in 2023. For more information on pre-orders or to see a live counter of pre-order sales, please visit www.daymakavvenire.com.
Corporate Updates and Highlights
The Company is pleased to announce that its IoniX Pro RV Freedom battery, and IoniX Pro SmartWall have begun the manufacturing stage, and both products are expected to have the first versions landed in Canada by Summer 2021.
The Company is pleased to announce that Mr. Robert Abenante will be assuming the role of Managing Director in its subsidiary IoniX Pro. Mr. Abenante currently holds the title of Chief Innovation Officer and will now also assume the head of the Company's battery products and services subsidiary.
The Company recently closed the first tranche of its previously announced private placement, as stated in its news release dated April 6, 2021.
On behalf of the Company,
Chief Executive Officer
About EV Battery Tech
Extreme Vehicle Battery Technologies Corp. is a blockchain and battery technology company with revolutionary, patented Battery Management Systems (BMS) designed to meet the growing demand for scalable, smart solutions for the rapidly growing Electric Vehicle (EV) and Energy Storage Solution (ESS) markets. The Company has committed to assisting global recycling solutions by offering recycling initiatives using their technology to analyze and fully refurbish used batteries.
Contact Numbers and Emails
For further information about the Company, please visit https://www.evbattery.tech.
For further information about the Company's Products please visit https://www.ionixpro.com.
For Investor Inquiries, please contact (236) 259-0279 or email email@example.com.
For Product or Sales Inquiries, please contact (236) 266-5174 or email firstname.lastname@example.org.
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The CSE (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties, including the specific factors disclosed here and elsewhere in EV Battery Tech's periodic filings with Canadian securities regulators. When used in this news release, words such as "will", "hope", "could", "plan", "estimate", "expect", "intend", "may", "potential", "believe", "should", "projected", "proposed", "rendering" and similar expressions, are forward-looking statements.
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward-looking statements. These statements are based upon assumptions that are subject to risks and uncertainties. A number of factors could cause actual events, performance or results to differ materially from what is projected in forward looking statements. Although we believe that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and we cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, investors should not place undue reliance on these forward-looking statements. Whether actual results, performance or achievements will conform to EV Battery Tech's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those listed under "Risk Factors" below and those set forth in the Company's continuous disclosure documents filed on www.sedar.com. The Company does not undertake to update any forward-looking information, except as, and to the extent required by, applicable securities laws.
Forward-looking statements in this news release include, but are not limited to, statements respecting (i) the Technology Partnership Agreement; (ii) the supply of IonIX Pro Lithium Ion battery pack and batteries to Daymak; (iii) Daymak's specifications for the Spiritus and Avvenire products generally; (iv) the Company's ability to bring its products to market; (v) increasing demand for electric vehicles, charging stations, and other battery products, including those of EV Battery Tech; (vi); (vii) the Company's ability to satisfy the demand for its products; (viii) the Company's prospects for 2021; (ix) Daymak's forecast for product sales; and * Daymak's ability to bring the new its new Avvenire products to the market by 2023; * Daymak's financial projections and the impact of same on the Company's financial projections; and (xi) expected timelines for deliveries and production of the Company's products. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
This news release contains information about potential sales revenue from the Technology Partnership Agreement, which may be considered as disclosure of financial outlook under applicable securities laws. Such information is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraph. Specifically, potential sales revenue which may be derived from Technology Partnership Agreement has been calculated based on current wholesale prices and assume, among other things, that: (i) Daymak will successfully be able to bring its new Avvenire products to the market by 2023; (ii) Company's wholly-owned subsidiary, IoniX Pro, will be the exclusive battery provider to Daymak; and (iii) IoniX Pro will successfully be able to bring its batteries to the market prior to 2023.
Financial outlook contained in this news release was made by management as of the date of this news release and was provided for the purpose of providing readers with an understanding of the potential revenue which may be derived from the Technology Partnership Agreement recently entered into by the Company, and are not an estimate of profitability or any other measure of financial performance. Readers are cautioned that the financial outlook contained in this document should not be used for purposes other than for which it is disclosed herein.
Material Agreement with Daymak.
The Company's Technology Partnership Agreement with Daymak is a material agreement for the Company. The Company's potential revenue is substantially dependent on Daymak successfully completing and selling its Avvenire products within the next 24 months. If Daymak is not able to successfully complete the projected sales of its Avvenire products in the next 24 months or if Daymak does successfully complete its Avvenire projected sales by such date but does exclusively purchase the IoniX Pro Lithium-Ion battery packs from the Company, then there will be a material adverse effect on the business, results of operations and financial condition of the Company. There is no assurance that the Company will be successful in achieving potential revenue from sales to Daymak and the likelihood of success must be considered in light of the Company's early stage of operations.
There is potential for the Company to face intense competition from other companies, some of which have longer operating histories and more financial resources, industry, manufacturing and marketing experience than the Company. Additionally, there is potential that the industry will undergo consolidation, creating larger companies that may have increased geographic scope and other economies of scale. Increased competition by larger and better financed competitors with geographic and other structural advantages could materially and adversely affect the proposed business, financial condition and results of operations of the Company. This could have a material impact on profit margins especially if raw materials and/or labour costs change. In the event that input costs rise or that competitor costs fall significantly, there is potential that the profit margins could be significantly lower.
Reliance on Management.
The success of the Company will be dependent upon the ability, expertise, judgment, discretion and good faith of its senior management and key personnel. While employment agreements are customarily used as a primary method of retaining the services of key employees, these agreements cannot assure the continued services of such employees. Any loss of the services of such individuals could have a material adverse effect on the Company's business, operating results or financial condition. In addition, the Company's future success depends on its continuing ability to attract, develop, motivate and retain highly qualified and skilled employees. Qualified individuals are in high demand, and the Company may incur significant costs to attract and retain them.
There is no guarantee that the Company will be able to continue to execute on its business strategy. The continued development of the Company may require additional financing. The failure to raise such capital could result in the delay or indefinite postponement of current business strategy or the Company ceasing to carry on business. There can be no assurance that additional capital or other types of financing will be available if needed or that, if available, the terms of such financing will be favourable to the Company. In addition, from time to time, the Company may enter into transactions to acquire assets or the shares of other companies. These transactions may be financed wholly or partially with debt, which may temporarily increase the Company's debt levels above industry standards. Any debt financing secured in the future could involve restrictive covenants relating to capital raising activities and other financial and operational matters, which may make it more difficult for the Company to obtain additional capital and to pursue business opportunities, including potential acquisitions
Management of Growth.
The Company may be subject to growth-related risks including capacity constraints and pressure on its internal systems and controls. The ability of the Company to manage growth effectively will require it to continue to implement and improve its operational and financial systems and to expand, train and manage its employee base. The inability of the Company to deal with this growth may have a material adverse effect on the Company's business, financial condition, results of operations and prospects.
The Effects of Health Epidemics (Including the Global COVID-19 Pandemic).
In December 2019, a novel strain of COVID-19 was reported in China. Since then, the COVID-19 has spread globally including across North America. The spread of COVID-19 from China to other countries has resulted in the World Health Organization (WHO) declaring the outbreak of COVID-19 as a "pandemic," or a worldwide spread of a new disease, on March 11, 2020. Many countries around the world, including Canada and the United States, have imposed quarantines and restrictions on travel and mass gatherings to slow the spread of the virus, and have closed non-essential businesses. The Company's business could be materially and adversely affected by the risks, or the public perception of the risks, related to the outbreak of COVID-19. The risk of a pandemic, or public perception of the risk, could cause temporary or long-term disruptions to the Company's supply chains and/or its service providers or could result in reduced spending on the Company's proposed products and services. "Shelter-in-place" or other such orders by governmental entities could also disrupt the Company's operations if employees who cannot perform their responsibilities from home are not able to report to work. The spread of COVID-19, which has caused a broad impact globally, may materially affect the Company economically. While the potential economic impact brought by, and the duration of, COVID-19 may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global financial markets, reducing the Company's ability to access capital, which could in the future negatively affect liquidity. In addition, a recession or market correction resulting from the spread of COVID-19 could materially affect the Company's business and the value of its securities. The global outbreak of COVID-19 continues to rapidly evolve. The extent to which COVID-19 may impact the Company's business, operations and financial performance will depend on future developments, including the duration of the outbreak, travel restrictions and social distancing in Canada and other countries, changes to the regulatory regimes under which the Company operates, the effectiveness of actions taken in Canada and other countries to contain and treat the disease and whether the Canada and additional countries are required to move or return to complete lock-down status. The ultimate long-term impact of COVID-19 is highly uncertain and cannot be predicted with confidence.
SOURCE EV Battery Tech