Evolve Taps Nuvve, Stonepeak To Launch Electric Vehicle Joint Venture
Evolve Transition Infrastructure (NYSE: SNMP) announced today an agreement entered into with vehicle-to-grid platform developer Nuvve Holding Corp. (Nasdaq: NVVE) and equity firm Stonepeak Partners. The agreement will see a joint venture focused on accelerating the deployment of electric fleets through vehicle-to-grid hubs and transportation-as-a-service.
The joint venture, called Levo Mobility, is expected to initially focus on electrifying school buses and associated charging infrastructure but is also slated to work with commercial fleets in the future.
Levo is tapping on Nuvve for its vehicle-to-grid platform, which also allows electric vehicle batteries to store energy and earn revenue via a virtual power plant model that sees energy dispersed from the vehicle back to the grid while parked.
Under the agreement, Evolve will partner with Stonepeak to deploy an initial US$750 million capital commitment to Levo Mobility. The investment is expected to be funded 90% by Stonepeak and 10% by Evolve.
Stonepeak and Evolve will also receive warrants to purchase an aggregate of 5.4 million and 600,000 Nuvve common shares, respectively. In addition, Nuvve also granted Stonepeak and Evolve an option to purchase 5 million Nuvve shares at US$50 per share.
The joint venture agreement comes on the heels of the Biden-Harris administration’s infrastructure plan that includes electrification of 480,000 school buses. US Congress also recently announced a US$25-billion bill to push electrifying school buses.
The joint venture agreement is expected to close prior to the end of July 2021.
Evolve Transition Infrastructure last traded at US$0.71 on the NYSE while Nuvve Holding Corp. last traded at US$8.25 on the Nasdaq.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
