Power Solutions International Announces Additional $ 25 Million Shareholder Loan Agreement with Weichai America
WOOD DALE, Ill., July 20, 2021 (GLOBE NEWSWIRE) – Power Solutions International, Inc. (the “Company” or “PSI”) (OTC Pink: PSIX), a leader in design, engineering and manufacturing emissions-certified engines and fuel systems, today announced that it has entered into an additional shareholder loan agreement with its majority shareholder, Weichai America Corp. (“Weichai”), dated July 14, 2021 (the “Shareholder Loan Agreement”). The shareholder loan agreement, which expires on May 20, 2022, gives the Company access to credit of up to $ 25 million at Weichai’s discretion to supplement the Company’s working capital. Borrowings under the Shareholder Loan Agreement will bear interest at the applicable rate of LIBOR + 4.50% per annum. As of July 15, 2021, PSI has borrowed $ 15 million under the Shareholder Loan Agreement.
Additional details on the shareholder loan agreement can be found in the company’s current report on Form 8-K filed with the Securities and Exchange Commission on July 20, 2021.
Lance Arnett, CEO, commented: “We appreciate the continued support that Weichai, our strategic partner and majority shareholder, has provided to us with this additional loan. This additional liquidity will help support our business and operational needs as we move forward. As we move into the second half of 2021, we will continue to research longer term funding options with help from Weichai, while also working closely with them as we monitor our liquidity going forward. “
Shaojun Sun, Chairman of the Board, added, “PSI is an important strategic partner for Weichai. We look forward to continuing our collaboration together and supporting and working with PSI as we strive to achieve long-term growth and shareholder value. “
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of a wide range of advanced and emission certified engines and power systems. PSI provides integrated turnkey solutions to the world’s leading original equipment manufacturers and end users in the energy, industrial and transportation end markets. The company’s unique in-house design, prototyping, engineering and testing capabilities allow PSI to customize clean, high-performance engines using a fuel-independent strategy to operate on a wide variety of fuels, including gas. natural, propane, gasoline, diesel and biofuels.
PSI develops and supplies complete power systems that are used worldwide in stationary and mobile power generation applications supporting standby, start-up, demand response, micro-grid and cogeneration (CHP); and industrial applications which include forklifts, agriculture and turf, arbor maintenance, industrial sweepers, aerial work platforms, irrigation pumps, ground support and construction equipment. In addition, PSI develops and supplies powertrains specially designed for medium-duty trucks and buses, including school and transit buses, work trucks, terminal tractors and various other professional vehicles. For more information on PSI, visit www.psiengines.com.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s current expectations regarding its prospects and opportunities. These forward-looking statements are covered by the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The Company has attempted to identify these forward-looking statements by using words such as “anticipate”, “believe”, “budgeted”, “Contemplate”, “estimate”, “expect”, “foresee”, “orientation”, “can”, “),” would “or similar expressions, but these words are not the exclusive means of identifying such statements. These statements are subject to a certain number of risks, uncertainties and assumptions which may lead to actual results, performances or achievements significantly different from those expressed or implied by these statements.
The Company cautions that the risks, uncertainties and other factors that could cause its actual results to differ materially from those expressed or implied by forward-looking statements, include, but are not limited to: the impact of the COVID pandemic -19 in progress could have on the activities and financial results of the Company; the Company’s ability to continue to operate; the Company’s ability to raise additional capital when needed and its liquidity; uncertainties regarding the Company’s ability to meet the financing conditions under its financing agreements and access to capital under them; the potential acceleration in maturity at any time of loans under the Company’s uncommitted senior secured revolving credit facility through the exercise by Standard Chartered Bank of its right of demand; timing of completion of steps to address, and failure to address and remedy significant weaknesses; identification of additional material weaknesses or significant deficiencies; risks associated with complying with the terms and conditions of regulations with the Securities and Exchange Commission (the “SEC”) and the United States Attorney’s Office for the Northern District of Illinois (the “USAO”); non-recurring expenditure variances; risks related to substantial costs and distraction of staff attention and resources deployed to deal with internal control issues; the obligations of the Company to indemnify past and present directors and officers and certain current and former employees with respect to investigations conducted by the SEC and the Criminal Division of the USAO, which will be funded by the Company with its resources from existing cash flow due to the exhaustion of the historical insurance coverage of its directors and senior officers; the Company’s ability to accurately forecast sales and the extent to which sales result in recorded revenue; changes in customer demand for the Company’s products; volatility in oil and gas prices; the impact of US tariffs on imports from China on the Company’s supply chain; the impact of increased warranty costs and the Company’s ability to mitigate these costs; any delay and difficulty in recruiting key employees in accordance with the Company’s plans; any negative impact of the delisting of the par value of the Company’s common shares of $ 0.001 from the NASDAQ stock market and any delay and difficulty in obtaining re-listing on a stock exchange; and the risks and uncertainties described in the reports filed by the Company with the SEC, including, without limitation, its annual report on Form 10-K for the fiscal year ended December 31, 2020 and subsequent filings of the Company with the SEC.
The Company’s forward-looking statements are made as of the date hereof. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statement, whether as a result of new information, future events or otherwise.
Power Solutions International, Inc.
Director of Investor Relations
+1 (630) 451-5402