The Coretec Group (CRTG, Financials) purchased a controlling stake in South Korea's KIB Plug Energy, strengthening its position in the energy and industrial sectors; CRTG stock is up 27.1% in Wednesday trading following the news.
Under an agreement with KIB Plug Energy's largest shareholder, Open Asia, the Ann Arbor-based company bought 17,957,581 shares for 8.5 billion KRW (US$6.04 million) and plans to acquire another 24 million shares. The deal value overall comes to 25.66 billion KRW (US$18.24 million).
Serving 53 countries, KIB Plug Energy, a KOSPI-listed company offers engineering, manufacturing, and maintenance services for chemical and petroleum production. Reflecting a consistent financial performance, its yearly revenues over the past five years topped $70 million.
Based on company announcements, Coretec also raised US$8.37 million via a private placement of Series D Convertible Preferred Stock to help with the purchase. The acquisition confirms Coretec's position as the main shareholder in KIB Plug Energy, so supporting fresh projects in energy and technological innovation.
Michael Ussery, CEO of Coretec, Dr. Seonkee Kim, Co-Chairman, Youngsun Yoo, Senior Vice President of Finance, and Jungmin Lee, COO, will join the board on December 13, 2024, so expanding Coretec's leadership team at KIB Plug Energy. Aiming to improve testing and calibration capabilities, the company highlighted the strategic restructuring of its Core Optics subsidiary, which specializes in small camera modules.
In line with federal and state energy projects, Coretec wants to build a giga-scale battery manufacturing facility in the United States in a larger path towards energy storage innovation. Driven by its recent acquisition and expansion activities, the company expects consolidated yearly revenues to exceed US$100 million.
Through its Endurion program, the Coretec Group seeks to innovate lithium-ion battery technology and develops advanced silicon for uses in energy storage. The acquisition of KIB Plug Energy and the fresh leadership appointments highlight Coretec's will to be a worldwide leader in technology and energy.
