On-site power generation equipment manufacturer Pioneer Power Solutions Inc. has completed the sale of its wholly owned subsidiary Pioneer Critical Power Inc. to microgrid company CleanSpark Inc.
Announced Monday, PCPI’s sale was effective Jan. 22, and valued at approximately $4.4 million.
Under the terms of the all equity transaction Pioneer said it received 1.75 million shares of newly issued CleanSpark common stock; a five-year warrant to purchase 500,000 shares of CleanSpark common stock at an exercise price of $1.60 per share; and a five-year warrant to purchase 500,000 share of CleanSpark common stock at an exercise price of $2.00 per share.
According to Fort Lee-based Pioneer, PCPI’s primary assets are Underwriters Laboratories safety files for low voltage switchgear and automatic transfer switches, which it acquired as part of a 2013 acquisition of Power Systems Solutions Inc.
PCPI is unrelated to Pioneer’s Minnesota-based engine generator business operating under the same name, which will retain and continue to operation as Pioneer Critical Power. Pioneer said CleanSpark will change the name of PCPI by Feb. 21.
“The sale of these assets, primarily intellectual property, represents another step in our efforts to create incremental value from our assets,” Pioneer Chairman and Chief Executive Officer Nathan Mazurek said in a prepared statement. “Our core business continues to perform well, and we are actively engaged in discussions to sell our switchgear business to further streamline our portfolio and unlock shareholder value.”i