SINGAPORE and YOKOHAMA, Japan -- November 27, 2023 --
InvestorsHub NewsWire -- noco-noco Inc. (NASDAQ:
NCNC, “noco-noco”), a decarbonization solutions provider, has
announced its intent to acquire 51% of Assemblepoint Co. Ltd.
(“Assemblepoint”), a Japanese electric vehicle (EV) manufacturer
with a presence in the Philippines for a consideration of
approximately $3.6 million via a share swap arrangement, in a
strategic move driven by a shared commitment to address pressing
environmental and transportation challenges on a global scale. The
acquisition, upon anticipated completion in the first quarter of
2024, is expected to be accretive to revenue growth and earnings in
2024. The proposed acquisition marries noco-noco’s long-lasting and
high temperature-resistant battery technology, and Assemblepoint’s
rapidly scalable electric "Smart Bus” assembly, where buses are
centrally designed in Japan with a commitment to quality and
precision, coupled with a locally assembled process at much lower
cost.
The Philippines has committed to a
75% reduction in national emissions across key sectors by 2023,
but progress has been hampered by bottlenecks like the lack of
charging infrastructure and financing to shift to electric
vehicles.
This is where the combined strengths of noco-noco’s battery
technology and Assemblepoint’s rapid assembly approach synergize to
provide transformative solutions to decarbonize the transportation
sector.
Assemblepoint’s Agile Production Process (APP) allows its team
of engineers in Japan to centrally design, project manage, and
procure the components and parts for the electric buses, enabling
control teams to work with local EV assemblers without the need for
heavy equipment and expensive assembly lines typical to in
traditional car manufacturing companies. Assemblepoint’s EV buses
are designed with swappable battery packs to avoid the long hours
needed to charge a bus. The result – a high quality,
precision-designed and affordable electric mini-bus that will zip
around the congested main roads and through the narrow back roads
of the Philippines.
noco-noco's value proposition lies in its ground-breaking
X-SEPA™ battery technology. Under rigorous testing, lithium-ion
batteries (LiB) embedded with the X-SEPA™ separator and a
proprietary electrolyte have shown a fivefold extension of
conventional LiBs at sweltering temperatures of 60°C. This
breakthrough is particularly significant, given that typical EV
batteries experience performance degradation beyond 35°C. In
developing economies like the Philippines, where summer
temperatures soared to a scorching
50°C in 2022, such X-SEPA™-enhanced batteries redefine the
possibilities of sustainable transportation with battery longevity
translating to longer leasing duration and directly lowering
leasing fees, a win for both the EV buyer and the lessor. In
addition, the solution presents a feasible redeployment of
the swappable batteries for second life use in Battery Energy
Storage Systems (BESS) and a force for good to meet the
sustainable energy needs of remote and economically-vulnerable
regions of the country.
Once completed, the acquisition will put noco-noco on track to
scale up its leasing business across the region. In time, the
company aims to expand its presence into fast growing EV markets
like Sri Lanka, Kenya, India and the Middle East. The addressable
market opened by the acquisition stands to be substantial, with
CleanTechnica reporting that more than six million EVs are
forecast to be on roads in the Philippines by 2030, 600,000 of
which are electric buses, commercial vehicles, and equipment.
The acquisition would initiate with the deployment of 28 units and
a 29th vehicle earmarked for Sri Lanka, as a starting point.
Masataka Matsumura, CEO of noco-noco, said, “The collaboration
between noco-noco and Assemblepoint is not just about combining
products; it's about creating a comprehensive offering. Swappable
batteries, integrated with emissions reduction strategies,
innovative battery solutions, and a battery leasing business model,
form the foundation of a symbiotic partnership. Fleet leasing,
coupled with carbon credits further enhances this value
proposition, creating a holistic solution for customers. This
strategic move is underpinned by our end goal of capturing over 10%
of the commercial vehicle market in the Philippines by 2030.”
Assemblepoint's CEO, Takashi Miyashita, said, “Many pilot
projects have been implemented in the world, but there are very few
examples of successful social implementation and business. To
ensure that the vehicle sales are profitable, the manufacturing
process must be carefully planned and designed – execution is key
with cost management tightly controlled. A projection of more than
2,000 units before the end of 2025 with potential offtakers in the
mobility, logistics, and energy industries, and with lean and agile
manufacturing processes, we can readily replicate the model and
scale rapidly to capture the developing and less developed markets
providing affordable solutions that also contributes to an
upliftment of welfare and economies.”
Completion of the Sale and Purchase Agreement is subject to
customary conditions precedent, which includes satisfactory
completion of due diligence, and noco-noco having obtained the
approval of its shareholders for the transaction and necessary
applicable regulatory consents and approval for the
transaction.
About noco-noco:
noco-noco Inc. (Nasdaq NCNC) is a decarbonization solutions
provider working to accelerate the global transformation to a
carbon-neutral economy. From X-SEPA™, a
revolutionary battery separator technology designed for
long-lasting and high heat-resistant performance, to
noco-noco Lease, our leasing platform for green
transportation, noco-noco addresses the need for clean, affordable,
and sustainable energy solutions. noco-noco is working towards a
future where batteries come fitted with IoT devices for data-light,
smart energy optimization and usage. That’s sustainability
simplified.
See noco-noco.com for more
information.
About Assemblepoint:
Assemblepoint Co., Ltd. is an EV manufacturer that makes and
sells electric minibuses and minivans under its Japanese brand in
the Philippines. Assemblepoint completed its prototype in 2018, and
as of 2023, has already delivered vehicles to public buses
operators, logistics companies, etc., and has products running on
public roads. Assemblepoint is developing business with a focus on
the ASEAN region, where the shift to EVs is rapidly advancing.
For enquiries:
contactus@noco-noco.com
Safe Harbor Statement:
This press release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. When noco-noco Inc. (the “Company”)
uses words such as “may,” “will,” “intend,” “should,” “believe,”
“expect,” “anticipate,” “project,” “estimate,” or similar
expressions that do not relate solely to historical matters, it is
making forward-looking statements. Forward-looking statements are
not guarantees of future performance and involve risks and
uncertainties that may cause the actual results to differ
materially from the Company’s expectations discussed in the
forward-looking statements. These statements are subject to
uncertainties and risks including, but not limited to, the
following: the Company’s goals and strategies; the Company’s future
business development; product and service demand and acceptance;
changes in technology; economic conditions; the growth of the
third-party wealth management industry in China; reputation and
brand; the impact of competition and pricing; government
regulations; fluctuations in general economic and business
conditions in China and the international markets the Company
serves and assumptions underlying or related to any of the
foregoing and other risks contained in reports filed by the Company
with the Securities and Exchange Commission. For these reasons,
among others, investors are cautioned not to place undue reliance
upon any forward-looking statements in this press release.
Additional factors are discussed in the Company’s filings with the
U.S. Securities and Exchange Commission, which are available for
review at www.sec.gov. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof.
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