Canadian firm Zenn agrees to acquire majority stake in US energy-storage company EEStor
Canadian firm ZENN Motor Co has inked a deal to purchase a majority stake in US energy storage company EEStor. ZENN is a firm that used to market lead-acid battery-powered vehicles, according to Autoblog.
Under the terms of the acquisition deal, ZENN will buy a 51% stake in EEStor. The Canada-based company also agreed to make staged cash payments amounting to $1 million in total. In addition, EEStor's chief executive officer and chief financial officer will step down as part of the agreement, the report detailed.
Green Car Congress reports that a product testing has revealed that EEStor's energy storage systems are still not ready for commercial marketing, the report added.
Last May, ZENN announced that it was increasing its stake in EEStor. The latter, on the other hand, said that while its systems are able to handle more power storage, commercial viability was still just not feasible at the moment, Autoblog reported.