EnSync Inc., a developer of energy management systems for the utility, commercial, industrial and multi-tenant building markets, is reporting that that due to the failure of SPI Solar Inc. to meet its purchase obligations under its supply agreement with the company, EnSync has delivered a formal Notice of Default to SPI.
In this Notice of Default, EnSync informed SPI that to cure its breach of the supply agreement, by Nov. 23, 2016 SPI would need to:
(1) purchase and pay for products (and related services) from EnSync with a minimum total aggregated 5 MW of rated power, with discharge time of two or more hours and
(2) order additional products (and related services) from EnSync with an additional minimum total aggregated 10 MW of rated power, with discharge time of two or more hours, including paying a 50 percent deposit for those products (and related services).
If SPI fails to meet these requirements, according to the notice, EnSync intends to terminate the supply agreement. Following the termination of the supply agreement, it will no longer be possible for SPI to satisfy the conditions that would have enabled it to convert its shares of EnSync’s Series C Convertible Preferred Stock into common stock. Similarly, it will no longer be possible for the warrant to purchase shares of common stock acquired by SPI to become exercisable.
— Solar Builder magazine