iPower Acquires a 100% Interest in its Global Co-Engineering Partner, Daheshou Shenzhen Information Technology

IPOWER

IPOWER

Strategic Acquisition Expands Creation Potential and Deepens R&D Abilities

DUARTE, Calif., Feb. 22, 2022 (World NEWSWIRE) — On February 15, 2022, iPower Inc. (Nasdaq:IPW) (“iPower” or the “Company”), one of the foremost on the web hydroponic devices suppliers and vendors, obtained Anivia Restricted, a British Virgin Islands enterprise, for US$12 million. Anivia Restricted controls a 100% desire in iPower’s largest international co-engineering spouse, Daheshou Shenzhen Info Technological innovation Co. Ltd (“DHS”).

DHS is a company supplier based in Shenzhen, China that is engaged in R&D, distribution, high-quality assurance, conclude-to-conclude offer chain administration companies, and online merchandising products and services. DHS provides these providers to markets through North The us, Europe and Asia. DHS produced somewhere around $9. million of gross profits in fiscal 12 months 2021, with the majority of that profits coming from iPower, DHS’s major buyer.

The acquisition of DHS will increase iPower’s latest provide chain and e-commerce abilities as a result of in-property merchandise sourcing, producing community management, high-quality assurance processes and R&D knowledge.

“Since the onset of the world pandemic and in the course of the previous year’s risky source chain ecosystem, we have relied thoroughly on DHS to supply regular, higher-quality products and solutions in a well timed manner,” stated iPower CEO Lawrence Tan. “Their deep sourcing community and R&D expertise have been priceless belongings to our company. Bringing our important provider and logistics assistance service provider in-home will reinforce our offer chain and lessen the risk of prospective supplier turnover. We also prepare to make use of DHS for the gain of our lately introduced joint ventures, which will extend our new suite of solutions to a broader set of shoppers and companions likely forward.”

The $12. million in transaction thing to consider involves $1.5 million of dollars and a $3.5 million unsecured promissory be aware, with the remaining $7. million paid out in the kind of 3,083,700 shares of iPower frequent inventory, valued at $2.27 per share, which was the closing price of our frequent inventory traded on the Nasdaq Funds Marketplace on February 15, 2022. The promissory be aware bears fascination at a rate of 6% for each yr and will experienced in two years. All widespread inventory issued is topic to a 180-working day lock-up period next the closing of the transaction.

More facts can be found on our Recent Report on Form 8-K filed with the Securities and Trade Fee on February 22, 2022.

About iPower Inc.

iPower Inc. is one particular of the primary on the net suppliers and suppliers of hydroponics products and extras. iPower delivers thousands of stock keeping units from its in-property makes as very well as hundreds of other brands by means of its web page, www.zenhydro.com, and its on-line system companions. iPower has a numerous buyer base that includes equally commercial corporations and people today. For extra details, please pay a visit to iPower’s web page at https://ir.meetipower.com/.

Forward-Wanting Statements

All statements other than statements of historic point in this announcement are forward-seeking statements. These ahead-on the lookout statements include recognized and mysterious dangers and uncertainties and are dependent on present expectations and projections about potential situations and monetary trends that iPower believes might have an affect on its fiscal condition, outcomes of operations, business strategy and economic needs. Buyers can determine these ahead-on the lookout statements by words and phrases or phrases these as “may possibly,” “will,” “count on,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe that,” “probable,” “continue,” “is/are very likely to” or other similar expressions. iPower undertakes no obligation to update forward-wanting statements to reflect subsequent developing functions or situations, or alterations in its expectations, except as may possibly be required by law. Whilst iPower believes that the anticipations expressed in these forward-seeking statements are acceptable, it simply cannot guarantee you that these anticipations will transform out to be accurate, and iPower cautions traders that actual effects may differ materially from the expected benefits and encourages traders to critique other elements that may possibly have an affect on its foreseeable future results in iPower’s registration assertion and in its other filings with the SEC.

Trader Relations Make contact with

Sean Mansouri, CFA
Elevate IR
(720) 330-2829
[email protected]