SPI Energy (SPI) Stock Rockets on Spin Off News

SPI Energy SPI Stock News

SPI Energy Co Ltd (NASDAQ: SPI) is running for the top in the market this morning, and for good reason. The company announced that it would be spinning off a subsidiary through an initial public offering. Here’s what’s going on:

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SPI Stock Pops on Solar Spin Off

In the press release, SPI Energy said that it plans on spinning off Solar Juice, a wholly owned subsidiary. The Solar Juice spin off will take place through a public offering. However, SPI energy will retain the majority ownership of the company following the spin off.

The company being spun off of SPI, Solar Juice, sells solar PV panels, solar inverters, energy storage, EV charger, and complete solar system & renewable energy solutions for residential and small commercial market. In particular, Solar Juice targets customers in the Americas and Asia.

Aside from the spin off, SPI also announced that it entered into a settlement deed with the majority stockholders of Solar Juice Australia.As a result of the settlement, the company said that legal proceedings have been dismissed.

In a statement, Mr. Xiaofeng Peng, Chairman and CEO at SPI, had the following to offer:

Solar Juice is a leader in Asia Pacific market, and we believe we can unlock greater value of this business through a successful spin off.

This Is Big News

The news released by SPI Energy proved to be overwhelmingly positive. First and foremost, the spin off will provide the company with a large injection of funding, helping to improve the company’s balance sheet. Moreover, spin offs allow companies to focus on core assets while the spun off company focuses on their core assets. This is a huge advantage as improved focus on core assets generally has led to growth throughout history.

All in all, with a coming capital injection through the spin off of Solar Juice, and the increased focus that will likely take place following the spin off, SPI stock is one to keep a close eye on.

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