Ideanomics MEG Announces the Official Launch of Its Energy S
NEW YORK, June 25, 2020 /PRNewswire/ -- Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company") MEG is pleased to announce that it has entered into a deal with Zhongsen Tower whereby both parties will establish Zhongsen Tower in Qingdao. Under the terms of the deal, MEG will own 30% of the venture making MEG the largest co-shareholder. The Deal represents the official launch of MEG's Energy Services Unit and paves the path for MEG to grow its most potentially lucrative division. Additionally, as a significant shareholder of Zhongsen Tower, MEG will be able to capture both reoccurring rental sales revenue as well as energy sales from powering the base stations.
As a reminder, MEG's business model is based on sales to financing to charging (SFC). While the market opportunities for electric vehicle (EV) sales and financing are substantial, the charging-based energy sales or energy services market opportunity is larger and has reoccurring revenues. According to Zhongsen Tower, there is an estimated six million base stations needed for China's 5G nationwide network deployment. Through MEG's deal with Zhongsen Tower, MEG has taken a significant step to monetize its energy sales by powering Zhongsen's base stations. Base stations are critical components to new energy infrastructure as they are the heart of enabling all things technology-driven such as smart cities, smart shipping ports, IoT, IoV, etc.
Zhongsen Tower is the leading 5G and IoT infrastructure service provider, offering a broad array of services including the build-out of 5G tower infrastructure, as well as leasing and financing of supporting infrastructure. It is affiliated with a division of China Tower Holdings which was ranked 71st in the Forbes Top 100 Digital Companies List and 22nd in the Fortune Future 50 in 2019. Zhongsen's partners include prominent companies such as China Mobile, China Telecom, China Unicom, China Power Construction, China Railway Construction, State Development Bank, CITIC, China Life, China Agriculture Bank, China Merchant Bank, China State Construction Engineering Corporation (CSCEC), and China Electric.
Ideanomics is a global company focused on facilitating the adoption of commercial electric vehicles and developing next generation financial services and Fintech products. Its electric vehicle division, Mobile Energy Global (MEG) provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions. Ideanomics Capital includes DBOT ATS and Intelligenta which provide innovative financial services solutions powered by AI and blockchain. MEG and Ideanomics Capital provide our global customers and partners with better efficiencies and technologies and greater access to global markets.
The company is headquartered in New York, NY, and has offices in Beijing, Guangzhou and Qingdao, China.
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This press release contains certain statements that may include "forward looking statements". All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties, and include statements regarding our intention to transition our business model to become a next-generation financial technology company, our business strategy and planned product offerings, our intention to phase out our oil trading and consumer electronics businesses, and potential future financial results. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and uncertainties, such as risks related to: our ability to continue as a going concern; our ability to raise additional financing to meet our business requirements; the transformation of our business model; fluctuations in our operating results; strain to our personnel management, financial systems and other resources as we grow our business; our ability to attract and retain key employees and senior management; competitive pressure; our international operations; and other risks and uncertainties disclosed under the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and similar disclosures in subsequent reports filed with the SEC, which are available on the SEC website at www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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