Ideanomics has increased its stake in California-based Soletrac, Inc., through a follow-on investment of an additional $1.3 million. This additional investment reflects investment interest in Solectrac by ESG funds which is expected to close in the coming weeks.
On Oct. 22, 2020, the Ideanomics announced that it acquired 14.7% of Solectrac, Inc. for the consideration of $1.3 million. This recent investment increases Ideanomics ownership to 24%, which will reduce to approximately 22% post-money once the additional third-party investment is finalized. The new investment by Ideanomics allows Ideanomics to increase its share of ownership sufficiently to recognize its stake in Solectrac under the equity method for US GAAP accounting purposes.
Check out a video about Soletrac below:
Solectrac develops, assembles, and distributes 100% battery-powered electric tractors—an alternative to diesel tractors—for agriculture and utility operations. Founded in 2012 to take electric tractors into commercial production, Solectrac was incorporated as a California Benefit Corp in 2019.
"We are very pleased to increase our investment in Steve and the Solectrac team, and we welcome the investment interest from funds looking to deploy capital in the clean energy and EV sector. We believe Solectrac has enormous potential and, given the uptick in both product inquiries and investment interest they are seeing, we exercised our rights to increase our stake so we can help Solectrac scale to meet anticipated market demand," said Alf Poor, CEO of Ideanomics. "We are excited to work with Ideanomics to accelerate progress toward a cleaner, healthier future," said Steve Heckeroth, CEO/Founder of Solectrac.