MESA, Ariz., Dec. 13, 2023 (GLOBE NEWSWIRE) -- Nxu, Inc., (NASDAQ: NXU) ("Nxu", "the Company"), a domestic technology company creating innovative EV charging and energy storage solutions for the infrastructure we need to power our electrified future, has signed a letter of intent (LOI) outlining a strategic investment in Lynx Motors. As a strategic partner, Nxu intends to assist Lynx in leveraging Nxu's vehicle and charging technology to more quickly scale its development of electrified products. Lynx is reimagining classic vehicles with a vision toward modernization and electrification, allowing owners to enjoy the original character and design of a classic car with modern amenities and powertrains.
In addition to the strategic value, this transaction is a step toward the execution of Nxu's Nasdaq compliance plan, which will increase Nxu's shareholder equity and help to ensure that Nxu achieves and maintains Nasdaq's listing standards. Additionally, Lynx Motors is working to electrify some of the most popular cars of all time and boasts a robust reservation list and projects to rapidly scale to gain significant revenue and prompt profitability. Lynx has already been successful converting premium-branded SUVs into vehicles with today's conveniences and high-powered engine performance and is now turning this success to electrification.
"With our common interest and goals aligned toward electrification, we envision tremendous potential in this strategic partnership and collaboration," said Nxu Founder, Chairman and CEO Mark Hanchett. "We envision this Lynx partnerships as an additional avenue to build shareholder value. Lynx has built a dedicated following that wants to see more cars become compatible with modern technology. Leveraging that strong foundation, and using it as a springboard to rapidly scale, we see nothing but exciting possibilities ahead. The future is EVs, and united, we have the opportunity to give consumers an exciting ride and a reliable charging experience - zero compromises."
Lynx CEO Rod Keller brings extensive industry and public company experience to the collaboration, with more than 25 years spanning several companies, including Linksys, Siemens, DIRECTV, Segway, AYRO, Cenntro Automotive Corporation and Teemak Power Corporation. Keller's focus on an impeccable customer experience at Lynx aligns with Nxu's standards for the future of EV charging.
"Our customers are customers we want to keep for life, and to do that, we need to provide them with unparalleled products and services," said Keller. "We're better prepared to do that when we look to the future of automotive and the technology and ecosystems we'll need to be a part of to continue to deliver that white glove treatment. At Lynx, we're excited to collaborate with Nxu, who share our vision for electrification, while being laser-focused on the customer experience."
Nxu's investment is structured as a share exchange, whereby $3 million in Nxu shares will be exchanged for $3 million in Lynx shares.
The value of Lynx shares would become an asset on the Company's balance sheet, and as part of the transaction Nxu will receive a seat on Lynx's Board of Directors. Additionally, to expedite the electrification process, Lynx will issue an interest free promissory note of $250,000 to Nxu in exchange for a $250,000 bridge loan.
About Nxu, Inc.
Nxu, Inc. is a domestic technology company leveraging its intellectual property and innovations to support e-Mobility and energy storage solutions. Driving the energy future, Nxu is developing an ecosystem of industry-leading grid level energy storage solutions, charging infrastructure and over-air cloud management - encompassed by Nxu's seamless subscription-based models. For more information, visit www.nxuenergy.com.
About Lynx Motors
Lynx Motors is an automotive company dedicated to the rejuvenation of timeless classics by blending tradition and innovation, with OEM-level quality standards. By redefining the driving experience for enthusiasts who seek the perfect fusion of classic design and cutting-edge technology, Lynx offers the best of both worlds. For more information, visit www.lynx.car.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our future areas of focus and expectations for our business. These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievements to materially differ from those expressed or implied by these forward-looking statements. Such forward-looking statements include statements regarding, among other things, Nxu's expectations about its long term growth strategy, future growth trajectory, revenue and operations; Nxu's technology and alignment with broader trends in the EV market; opportunities presented by electrification; beliefs about the general strength, weakness or health of Nxu's business; and beliefs about current or future trends in EV battery materials or other markets and the impact of these trends on Nxu's business. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent report on Form 10-K, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at www.nxuenergy.com. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.
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