The failing British electric vehicle company that pretended to become an American one in order to save its U.K. investors has scrapped its planned initial public offering that it hoped would save it in Kansas City.
Smith Electric Vehicles, recipient of $32 million in taxpayer stimulus, had reportedly fantasized it would raise $76 million (down from $125 million) via an IPO by selling roughly 4 ½ million shares at $16 to $18 each. CEO Bryan Hansel bowed to reality Thursday night and rescinded those plans.
“We received significant interest from potential investors,” he said in a statement. “However, we were unable to complete a transaction at a valuation or size that would be in the best interests of our company and its existing shareholders.”
Hansel said that the company will pursue “private financing opportunities” instead, which is also likely a fantasy – at least one that will enable … Read More ➡
It’s the battery.
Contrary to the excuses that Nissan has supplied about the loss of capacity for owners of the all-electric Leaf in the desert Southwest – especially super-hot Phoenix – a tightly-controlled test of a dozen of the vehicles showed that all of them experienced reduced range. Even a month-old Leaf could not recharge to 100 percent.
GreenCarReports.com revealed the dismal development this week. That the power reduction came so rapidly and so quickly debunked the claims of Nissan executives Carla Bailo and Andy Palmer, who suggested the problems could lie either with owners who were charging their vehicles improperly or that the power gauges were providing faulty readings.
The Arizona tests weren’t run by a bunch of skeptics out to prove what a failure President Obama’s electric car stimulus initiative is – even though it is. Leaf owners, led by EV advocate Tony Williams, ran the tests.… Read More ➡
The venture capital redistributionist game that surrounds President Obama’s green energy stimulus doesn’t necessarily require the actual delivery of taxpayer cash to crony corporations. Sometimes the malfeasance appears simply based upon the false promise of government “investment.”
Such was the case with the co-founders of Chicago-based Advanced Equities, Inc., who just received a severe reprimand (including big fines) from the Securities and Exchange Commission for dispensing false information to potential funders in attempts to gain private equity investment. In two separate offerings in 2009 and 2010, co-founder Dwight Badger (who left the firm in June) was accused of telling investors that the financial condition and business orders for Advanced Equities’ client – revealed to be fuel cell manufacturer Bloom Energy by Crain’s Chicago Business – far exceeded reality. Badger’s partner, co-founder and Board Chairman Keith Daubenspeck, was fined for “failing to reasonably supervise Badger.”
Advanced Equities also was the … Read More ➡
In what looks like an attempt to avoid a potentially costly and disastrous recall of its taxpayer-funded electric vehicles, Nissan has dismissed the concerns of its Leaf customers in Arizona and other hot states by claiming the apparent loss of battery capacity is “normal.”
Owners of the company’s dismal selling plug-in have banded together to collectively test their vehicles and see just how “normal” their loss of “bars” on their power indicators are.
Over the weekend twelve Leaf owners – led by EV advocate and Leaf owner Tony Williams – were to conduct an extended range test in Phoenix, according to the Web site Green Car Reports. In July NLPC reported that Nissan has been dealing with complaints from mostly Southwestern U.S. owners of the Leaf, who say their vehicles have lost range capacity, which were publicized on the discussion board Web site MyNissanLeaf.com. Carla Bailo, a Nissan … Read More ➡
Smith Electric Vehicles, which is using $32 million in taxpayer stimulus to practically give away its delivery trucks to corporations like Frito-Lay (owned by PepsiCo), Coca-Cola and Staples, is hemorrhaging money anyway and now is looking to an initial public offering to pay off debts and try to survive.
The Kansas City Star reported last week that Smith cut its production expectations and warning it is running low on cash, citing filings with the Securities and Exchange Commission. The company announced nearly a year ago it would seek $125 million through an IPO, but now says it hopes to raise about $76 million at a stock price of $16 to $18, according to a Kansas City Business Journal report.
Good luck with that. The Journal said the revenues generated “would help pay off a $16.5 million bridge loan, $1.3 million related to a legal settlement involving … Read More ➡
A solar company project that Senate Majority Leader Harry Reid successfully lured to Clark County, Nev. – where his son Rory was a former commissioner and now lobbies on behalf of the Chinese company that owns it – now wants the dominant utility in the state to buy its electricity.
So does Senator Reid, who is frustrated because every component to make ENN Energy Group move forward with the project is in place except for NV Energy, the state utility, to enter an agreement to buy the electricity. For the most part wind and solar farms don’t get built unless there is assurance that utilities will accept their power.
At an annual energy summit that Reid hosts, he said in a July 30 online conference that ENN “would start tomorrow if NV Energy would purchase the power,” according to a Reuters report. Adding that the utility controls 95 percent of … Read More ➡
As U.S. solar companies struggled, quit the business or outright failed in recent years, the blame has been the same: “We can’t compete with China;” “They manufacture panels far cheaper than us;” “They dump their cheap products in our country;” and “China understands the future of renewables and we need to catch up.”
That excuse soon won’t fool people any more, according to a London Telegraph article from Wednesday.
“China’s big five firms are all reporting disastrous trading and heavily indebted balance sheets,” the newspaper reported. “At the end of the first quarter, JA Solar listed debt and liabilities of $1.5 billion, Trina Solar had debts of $1.08 billion, and Yingli had debts of $3.44 billion.”
In addition another highly regarded company, Suntech, faces potentially huge payouts related to possible fraud and has $3.58 million in debt. The fifth company, LDK, is being kept afloat by the Chinese government … Read More ➡
Attentive NLPC readers were aware of the extent of Exelon Corporation’s activism to gain regulatory favor in support of “green” policies in which it reaped millions of dollars in government grants and mandates, but last week’s lengthy New York Times article about the cronyism-tainted relationship between the Chicago-based utility and the Obama administration revealed a few nuggets.
The story told how Exelon, with top executives as “early and frequent” supporters of the president as his political career ascended, were able to gain more access to the White House than others thanks to their longstanding relationships. According to one Exelon lobbyist, his employer was considered “the president’s utility.”
“White House records show that Exelon executives were able to secure an unusually large number of meetings with top administration officials at key moments in the consideration of environmental regulations that have been drafted in a way that hurt Exelon’s competitors, but … Read More ➡
When is a government watchdog not really a watchdog?
When he rolls over and lays at the feet of his master rather than sink his teeth into a program that he’s been tasked to guard.
Such appears to be the (unsurprising) case with Herbert Allison, Jr. (pictured), a former Wall Street executive (Merrill Lynch and TIAA-CREF) until he was appointed president and CEO of Fannie Mae in 2008, after it was put into conservatorship. Subsequently President Obama named (and the Senate confirmed) him as overseer of the Troubled Asset Relief Program (TARP), the $700 billion asset acquisition fund that bailed out Wall Street financial institutions. He served in that role for about 15 months, until September 2010.
But it’s Allison’s role as a special investigator of the Department of Energy’s stimulus-funded loan program that is sparking curiosity, as explained in an Associated Press story published yesterday. Not long after … Read More ➡
Two weeks ago the mainstream and clean tech advocacy media proclaimed that taxpayer-subsidized, failing electric vehicle battery maker A123 Systems would be saved by a deal with a Chinese company.
Since then the Massachusetts-based manufacturer’s stock price sank below what had been its previous low of 44 cents. This morning it is down to 38 cents, and yesterday the company received a delisting notice from the NASDAQ. So what happened?
There could be several reasons why the recipient of hundreds of millions of U.S. stimulus dollars hasn’t impressed Wall Street with its pending bailout from Wanxiang Group. The deal is not binding, so obviously either party could back out.
One possible reason it may fail is that the U.S. and Chinese governments must approve it, which are uncertainties. China will probably embrace it, which will be discussed momentarily. But the fact that so much U.S. government money has been … Read More ➡