EnSync Energy Acquires DCfusion LLC
DCfusion's Direct-Current (DC) System Consulting, Engineering and Policy Expertise Strategically Aligns with EnSync Technologies and Markets

MILWAUKEE, March 2, 2017  /PRNewswire/ -- EnSync, Inc. (NYSE MKT: ESNC), dba EnSync Energy Systems, a leading developer of innovative distributed energy resource (DER) systems and internet of energy (IOE) control platforms for the utility, commercial, industrial and multi-tenant building markets, today announces the acquisition of DCfusion LLC, a highly regarded leader in direct current (DC) system engineering design, consulting and policy.

The United States' electrical grid is a vast just‐in‐time network that requires constant load balancing, and relies on a synchronic operating methodology that does not lend itself well to intermittent activity, such as renewable energy generation.  As an increasingly electricity consuming world shifts to a portfolio comprised of more renewables, the need for DC based and hybrid DC-AC system design becomes increasingly critical for numerous reasons, including:

1) Renewable energy sources are largely DC, relatively small in scale as opposed to conventional generation, and often widely distributed, which makes coupling them into the current "synchronous" system via AC increasingly disruptive, difficult, more expensive and less reliable than coupling DC systems

2) Energy storage is natively DC, inherently requiring the need for AC based systems to convert power back and forth between AC and DC, as opposed to much simpler DC to DC conversions, which are accomplished with DC based DER systems

3) Electricity trade is much simpler using DC than AC, as direct transactional management of power flow in an electrical system, using semiconductor-based power electronics, is greatly simplified if the power flow is direct current and can be actively articulated with solid-state devices

4) Resiliency is better achieved with DC because the very nature of AC systems generally being reactive, as opposed to actively controlled, creates latency issues that can be detrimental in critical applications requiring resiliency.

In summary, direct current power systems offer numerous benefits in terms of reliability, price, performance and higher level of power articulation.

The acquisition of DCfusion brings decades of customer applied DC system design and consulting experience to complement EnSync Energy's application engineering.  DCfusion also brings a unique and substantial pipeline of potential projects in vertical markets that rely on the consultative expertise of the founders, and the authoritative voice of policies, programs and standards shaping the DC-centric technical and market landscape.

Mr. Tim Martinson, DCfusion Co-Founder and Principle, brings years of experience in developing and deploying value-based engineered systems for Fortune 100 global power and control OEMs across the country. Mr. Martinson is presently responsible for business development, working closely with industry leaders to drive engagements and facilitate collaboration among OEMs, architects, design-build firms, academia and government to deliver innovative microgrid applications.

Mr. David Geary, PE, DCfusion Co-Founder and Principle, for his entire career has delivered innovation and leadership to numerous electrical engineering projects in a variety of markets, including government, and private infrastructure engineering, design, construction and operations. Mr. Geary is regarded as a pioneer and leading expert in the evolution of DC power distribution for telecom and data centers, as well as microgrids integrating renewable energy and energy storage. 

The Principles of DCfusion are actively involved in influencing worldwide standards and codes, are frequent speakers at industry events, and hold chair and committee positions within numerous organizations, including The EMerge Alliance, NFPA/NEC, INTELEC, SCTE, IEEE and IEC.

DCfusion brings expertise and trusted relationships in vertical markets and applications that are well aligned with EnSync Energy's capabilities and technology, such as data centers, cable and telecom, off-grid communities, critical infrastructure resiliency, and big box architecture.

The essential terms of the asset-based acquisition include for EnSync Energy to provide for each of the two principles to receive inducement stock options and employment agreements, as well as the opportunity to earn a total combined twenty-percent equity in DCfusion based on performance.  No cash is required to complete the transaction.  DCfusion will operate as a subsidiary of EnSync, Inc., similar to our Holu Energy subsidiary, and the acquisition is expected to be accretive to EnSync Energy within the calendar year.

"EnSync Energy has extensive experience in DER system design and integration, and DCfusion's ability to aggressively drive differentiated capabilities to target markets furthers EnSync Energy's value chain expertise, and opens up a consulting services revenue stream for the company," said Brad Hansen, President and CEO of EnSync Energy Systems.  

As an inducement to join the Company, and as part of their compensation packages, each of Mr. Geary and Mr. Martinson was issued inducement stock options to purchase a total of 90,000 shares of Company common stock with an exercise price of $0.56 per share, which was the closing price of the Company's common stock on the NYSE MKT on February 28, , 2017.  The options will vest and become exercisable in full on February 28, 2020.

About EnSync Energy Systems

 

EnSync, Inc. (NYSE MKT: ESNC), dba EnSync Energy Systems, is creating the future of electricity with innovative distributed energy resource (DER) systems and internet of energy (IOE) control platforms. EnSync Energy ensures the most cost-effective and resilient electricity, delivered from an electrical infrastructure that prioritizes the use of all available resources, such as renewables, energy storage and the utility grid. As project developer, EnSync Energy's distinctive engagement methodology encompasses load analysis, system design consulting, and technical and financial modeling to ensure energy systems are sized and optimized to meet our customers' objectives for value and performance.  Proprietary direct current (DC) power control hardware, energy management software, and extensive experience with numerous energy storage technologies uniquely positions EnSync Energy to deliver fully integrated systems that provide for efficient design, procurement, commissioning, and ongoing operation.  EnSync Energy's IOE control platform adapts easily to ever-changing generation and load variables, as well as changes in utility prices and programs, ensuring the means to make or save money behind-the-meter, while concurrently providing utilities the opportunity to use DERs for an array of grid enhancing services. In addition to direct system sales, EnSync Energy includes power purchase agreements (PPAs) in its portfolio of offerings, which enables electricity savings for customers and provides a stable financial yield for investors. EnSync Energy is a global corporation, with joint venture Meineng Energy in AnHui, China, and energy project development subsidiary Holu Energy LLC in Hawaii, and DCfusion LLC, a power system engineering and design, consultancy and policy firm. For more information, visit www.ensync.com

 

About DCfusion LLC

 

DCfusion delivers the vision, expertise, and partnerships to further the proliferation of direct-current (DC) power systems that effectively enable the Distributed Energy Resource (DER) systems and microgrids that are beginning to transform the energy landscape. DCfusion delivers independent power system consulting services to industries developing and deploying DC power distribution technologies, and serves as a respected voice in related policy and program matters. For more information, visit www.dcfusion.net

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the "safe harbor" created by those sections.  Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "could," "seek," "intend," "plan," "estimate," "anticipate" or other comparable terms.  All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding our supply agreement with SPI Solar, Inc., expected future operating results, expectations concerning our PPA strategy, the anticipated results of our product development efforts and other expectations regarding our business strategy.  Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risks and uncertainties described in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our most recent Annual Report on Form 10-K and our subsequently filed Quarterly Report(s) on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.


 

Investor Relations Contact:
Lytham Partners, LLC
Robert Blum, Joseph Diaz, or Joe Dorame
(602) 889-9700

EnSync Media Contact:
Michelle Montague
mmontague@ensync.com
(262) 735-5676

 

SOURCE EnSync Energy Systems


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