Fort Lee-based Pioneer Power Solutions announced last week that it received $6.2 million in cash in connection with its 2019 sale of its transformer business units to Mill Point Capital, a private equity firm.
Pioneer Power Solutions, which traces its history to 1995 and went public in 2009, touts itself as a leader in the design, manufacture, service and integration of electrical power systems, distributed energy resources, power generation equipment and mobile electric vehicle charging solutions.
Pioneer Chairman and CEO Nathan Mazurek said the company now has approximately $11 million in cash on hand — and will look to use it to expand its operations in 2023.
“With this transaction complete, Pioneer doubled its cash position and strengthened its debt-free balance sheet,” he said. “We have built an experienced team and developed a comprehensive suite of solutions to effectively target the growing demand for advanced and flexible EV charging infrastructure.
“We believe this transaction provides sufficient capital with which to continue to invest in developing and commercializing our revolutionary EV charging and distributed generation solutions through the end of 2023.”
The more than $6.2 million infusion, which came on Dec. 15, is in connection with the sale of Pioneer’s transformer business units to Mill Point Capital in August 2019.
In addition to mostly cash considerations, Pioneer received two subordinated promissory notes, which accrued interest at a rate of 4% per year, with a final payment of all unpaid principal and interest becoming fully due and payable at Dec. 31.