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PLAYA VISTA, CA, Jan. 17, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – American Wealth Mining Corporation (OTC:HIPH) ("AWM" or the "Company”) is pleased to announce that it has entered into a Term Sheet to provide a Convertible Credit Facility to New Energy Asia Pacific Company Limited (https://www.new-energyap.com/) (“New Energy”), convertible up to an additional 30% in ownership in New Energy on an enlarged and fully diluted basis (“Convertible Credit Facility”). New Energy is a Hong Kong corporation that provides various types of electric construction vehicles, to distribute electric construction vehicles globally. The Company had previously announced that it had acquired a 10% interest in September 2022; terms of the acquisition were not publicly disclosed. The Convertible Credit Facility will allow the Company to own over 40% of New Energy. The Company has also finalized its Joint Venture (JV) agreement with New Energy, to create a new Singapore based Joint Venture entity, New Energy Construction EV Pte Ltd, that will be 80% owned by AWM, while New Energy will own the other 20%.
New Energy is currently the exclusive distributor of eTech and Foton electric construction vehicles in Hong Kong. In December 2022, the Company announced that it had entered into an LOI to create the JV with New Energy. The JV between AWM and New Energy grants the Company exclusive distribution rights for these construction EVs in the following territories: North America (US and Canada), United Arab Emirates, Singapore, Australia, Malaysia, S. Korea, and Indonesia.
In Hong Kong alone, New Energy is projecting to deliver over 300 vehicles in 2023 and 500 in 2024. Demand for these vehicles are reaching all-time highs, as the operating costs of construction EVs are up to 40% less than traditional gas and diesel powered construction vehicles. The growth in this industry is just starting to scratch the surface; according to a report by Grand View Research, the global off-highway electric vehicle market size is expected to reach USD 42.70 billion by 2030, with a CAGR of 31.7%.
Ryan Fishoff, CEO of AWM, commented, “We are excited with these recent developments that give the Company significant exposure and (potential) upside for this new and rapidly growing sector. This convertible investment compliments the finalized JV which allows for exclusive access to regions that have potential to generate significant revenue for AWM. The JV will leverage our investment in New Energy, enabling the Company to capitalize on its larger ownership share, which will benefit our P&L and balance sheet, creating the potential to increase long-term value for AWM shareholders. We have begun to assess each market internally to identify potential local partners who can help us reach scale to accelerate deliveries; we are also exploring the manufacture and assembly of these vehicles in the US, allowing for a more competitive product to take advantage of the various EV incentives in the marketplace.”