WASHINGTON (dpa-AFX) - UQM Technologies Inc. (UQM) announced that on December 26, 2016 it terminated the Stock Issuance and Purchase Agreement with Hybrid Kinetic Group Limited. The Agreement provides that it may be terminated by either party if various conditions to closing were not satisfied on or before December 25, 2016. Among the closing conditions that were not satisfied or waived by the End Date was the approval by UQM's shareholders of an amendment to UQM's Articles of Incorporation to reduce the voting requirements for future amendments to the Articles of Incorporation and other corporate actions from the current two-thirds threshold to a majority threshold.
As the transaction with Hybrid Kinetic did not close by the End Date, UQM's Board of Directors and the special committee of independent directors of UQM determined to terminate the Agreement. There are no penalties to UQM from terminating the Agreement following the End Date.
'While a majority of our shareholders voted in favor of the investment transaction with Hybrid Kinetic, our shareholders were sufficiently concerned about the reduction in voting threshold on key corporate actions that Proposal Three was soundly defeated even after adjourning and reconvening our annual meeting two times to allow us further time to solicit votes to approve this change,' said Joe Mitchell, President and CEO of UQM.
As previously indicated, UQM has adjourned its Annual Shareholder Meeting with respect to the proposal to amend and restate its Articles of Incorporation to increase the number of authorized shares of its common stock. UQM's Board of Directors believes that approval of the proposal to increase the number of authorized shares of UQM common stock is still in the best interest of UQM for future potential partnerships even though the Agreement with Hybrid Kinetic was terminated.
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