- Pinnacle International Capital and Leclanché have signed a Framework Partnership Agreement
- The agreement sets the process for the due diligence review and the detailed structure of all further agreements to be implemented
- The agreement is subject to the successful completion of the due diligence process, which commenced on the 22nd of July
Leclanché SA has signed a framework agreement with Pinnacle International Capital which will see the company secure expansion funding, subject to the completion of due diligence. This signed Framework Agreement builds on the binding terms already agreed to define a joint venture structure that will cement this partnership and fund the development of a 2GWh battery plant in Germany as well as a 2GWh operation in the Middle East.
The agreement defines the structure of the different agreements to be put in place for this partnership and the process to complete them. The CHF 360 million investment will be subject to the outcome of an engineering review and due diligence, during which the final amount will be determined. Under the terms of the agreement, Pinnacle and Leclanché will establish a joint venture company funded by Pinnacle for an amount of up to CHF 360 million and Leclanché will take a 50% stake in the joint venture company through a contribution in kind, giving Pinnacle an approximate 40% stake in Leclanché.
Pinnacle will outline the financial deployment structure during the engineering review. Pinnacle will be granted a further option to acquire up to a 30% additional stake in Leclanché through an agreement with SEF Lux in the amount of up to CHF 240 million, with the exact amount and percentage to be determined during the due diligence.
Once implemented, this strategic partnership will fully fund Leclanché’s business plan and the expansion of its operations. With a growing demand for Leclanché storage solutions, this partnership will provide a solid basis for the business to accelerate its growth.
Mr. Lex Bentner, Chairman of the Board of Leclanché, stated: “This framework agreement with Pinnacle is another step for Leclanché and Pinnacle to solidify our partnership, providing the necessary resources and strategic positioning to expand our footprint in Europe and the Middle East. The new facilities will significantly increase our production capabilities and allow us to better serve our customers. We look forward to building the business with Pinnacle alongside our existing shareholders. It has been very important for us to bring on board a new partner to help the company reach its full potential and allow us the production scale required for profitability.”
