This press release is based on the press release published in Swedish on March 16th, 2021. The formal formation of Parans Solar Lightings' Chinese subsidiary Parans Light Technologies Ltd. (PLT) is now finalized. The formation is an important milestone in Parans' China establishment, as it provides formal conditions for implementing previously agreed takeovers of assets, organization and operations from Chinese QPT. A transfer agreement will now be drawn up and executed, after which the company's operations can start.
The original strategic partner agreement signed in 2020 between Parans' and Chinese QPT (Qingdao Photon Technologies) gave Parans the right to take over all assets and operations in QPT. The takeover will take place through a transfer to the newly formed PLT in accordance with the principles for a chrome acquisition, whereby selected parts of the business will be taken over. A transfer agreement where this is specified (transfer agreement) must now be formalized and implemented. After that, the company's operations can begin.
The business to be taken over comprises employees mainly in marketing, sales and development. Parans and QPT have agreed that the production of 5G Smart Towers and IoT Street Lights will remain in QPT for the time being on terms that will also be regulated in future transfer agreements. Parans will return with more precise information regarding the number of employees, etc. when the mentioned transfer agreement is signed.
PLT's operations are expected to make a positive contribution to Parans' earnings and cash flow. At the moment, there are no revised figures regarding QPT's operations for 2020, but Parans will return with more information as soon as the operations in PLT have started.
Parans' CEO Helen Forsling makes the following comment:
“This establishment has been a complex and patient process that has unfortunately continued for a excessively long time, for reasons that have been beyond Parans' control. It is therefore very pleasant that the formal formation is now finally complete and that within a couple of weeks we plan for accessing the business that will be taken over from QPT."
As previously communicated, Parans' sales in China will take place in all of Parans' three product categories, the SP4 system, 5G Smart Towers and IoT Street Lights. The work of building the franchise network, according to the strategy communicated in the year-end report for 2020, will begin immediately, with the aim of establishing a presence in all regions of China.
Contact:
Helen Forsling, CEO at Parans Solar Lighting AB (publ), phone. +46 731 564 128, helen.forsling@parans.com www.parans.com
About Parans Solar Lighting AB (publ)
Parans Solar Lighting offers sunlight for indoor environments through an innovative system that captures and leads the rays of the sun. Parans, which developed the technology, turns mainly to property owners, architects and larger employers worldwide. Parans Solar Lighting is quoted on Spotlight Stock Market and has office in Mölndal, Sweden.
How the Parans system work: https://youtu.be/eflcbj2lpWo