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SAN DIEGO, CA - Nuvve Holding Corp. (NASDAQ:NVVE), a micro-cap company with a market value of $2.44 million specializing in power distribution and specialty transformers, announced today that it has entered into a Termination Agreement with Switch (NYSE:SWCH) EV Ltd., effectively ending their previous License and Escrow Agreements. According to InvestingPro analysis, the company currently appears undervalued despite facing significant operational challenges, including rapid cash burn and substantial debt obligations.
The original License Agreement, dated March 27, 2023, along with the related ancillary agreements, including a software escrow agreement from October 19, 2023, have all been concluded. According to the Termination Agreement, both parties have agreed to release each other from any claims, liabilities, and obligations under these contracts. This development comes as Nuvve reports trailing twelve-month revenue of $5.14 million and carries a total debt of $7.88 million.
As part of the termination conditions, Switch EV Ltd. has agreed to make a one-time payment of $600,000 to Nuvve Holding Corp. This payment is contingent upon the initial closing of a proposed transaction between Switch and an unrelated third party, as detailed in the Termination Agreement. Additionally, if certain pricing-related conditions occur in relation to Switch’s transaction with the third party, Switch will be required to make an additional lump-sum payment of $400,000 to Nuvve.
Details of the Termination Agreement were disclosed in a recent 8-K filing with the Securities and Exchange Commission (SEC), which includes a copy of the agreement. However, specific confidential information within the document has been omitted as it is not material and is considered private by the registrant.
The termination of these agreements concludes a partnership that began less than two years ago, allowing both Nuvve Holding Corp. and Switch EV Ltd. to pursue other opportunities independently. The financial implications of this termination, including the potential additional payment, could influence Nuvve’s financial position depending on the fulfillment of the contingent conditions. With the stock down nearly 12% year-to-date and showing high price volatility, investors seeking deeper insights can access comprehensive analysis and 15 additional key ProTips through InvestingPro’s detailed research reports.
Investors and interested parties can find the full details of the Termination Agreement in the Exhibit 10.1 of the 8-K report filed by Nuvve. This announcement is based on the press release statement provided by the company.
In other recent news, Nuvve Holding Corp. has announced a new strategy to diversify its treasury by incorporating Bitcoin into its assets, allocating up to 30% of its excess cash towards Bitcoin purchases. The company also reported significant growth in its Q3 2024 earnings, with revenues more than doubling from Q2 2024 to reach $1.9 million. Despite a decrease in year-to-date revenue from $6.7 million in 2023 to $3.5 million, the company’s gross margins improved. Nuvve has set a special meeting for stock issuance and recently had to adjourn its special meeting of stockholders due to a lack of quorum, extending the deadline for obtaining stockholder approval for additional common stock issuance to February 3, 2025. These are recent developments for Nuvve Holding Corp. In terms of future plans, Nuvve has several upcoming projects in the pipeline, including a significant contract with Taipower Corporation in Taiwan. The company anticipates continued growth in megawatts under management and aims to improve cash burn through lower operating costs and improved gross margins.
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