welcome to CEO insights I'm Marilyn De Guzman with investing News Network I'm speaking with Justin Rosenberg CEO of block mate we're talking about a new acquisition his company is undertaking hello Justin Hi Marilyn how are you I'm good good to have you so yeah let's conversation with just uh a recap of the announcement you just made which is block mate uh acquiring best power Innovation Corporation could you tell us a bit more about that deal yes sure block mate is acquiring best power


Innovation Corporation subject to TX approval for 20 million blockade shares so we're very excited about this acquisition uh it's an extension of the work that block mate has been doing with sonified in the climate Tech area and now with bet best's Network and uh particularly uh their new exclusive distribution agreement with livex which is a company listed on the Shanghai exchange with a market cap of just under a million dollars and revenue of selling their lithium ion phosphate batteries of


over $70 million so we're very excited about this acquisition yeah so best uh power is in the as you mentioned uh lithium ion bom space how does this acquisition align with block mate's business model so as I just mentioned uh block mate while started with uh blockchain and the hell product uh that we've developed uh also partnered with sfide uh because stifi approached block mate uh to help them launch their solar token leveraging off their patented set patented sensors uh on solar cells um


which is really a trojen horse in the solar farm industry and uh as a result of that it was a an exciting opportunity when we were also approach approached by best power Innovation to uh to partner with them and and there's Synergy both ways there's uh the sonified cell that is a very exciting addition to bess's uh product portfolio and also bess's Network um is exciting uh to distribute uh the sonified product and help us launch the solar token and the solar Farms that sigh are talking to is an


exciting opportunity for best to then sell our energy storage solutions so we're really excited about the synergies about those two business units of block me so what's the what's going to be next after this announcement what can the investor Community expect from this deal um in terms of you know the completion and what would happen next after that so our Focus Now is really to to roll this opportunity out so we are we've only just signed the deal uh but we are uh furiously working at our launch for best


uh the strategy we've got is to uh apply 500,000 people territories and to then uh offer those to lies uh we've got a very attractive deal for our early adopting lenses whereby there's no license fee they just have to commit to purchasing 10 batteries um and prepaying for only $25,000 of that purchase order uh up front uh and then we work with them to sell the remaining 10 and Beyond uh of those batteries so we expect that will be PR primarily in the residential space uh because it's a shorter lead uh lead


time sell cycle time but we do expect uh that our partners and lenses will start to identify uh grid scale uh battery opportunities uh because we're starting to have those conversations already um but that they are a longer sales time as we know the the lead time for the bigger brand uh not lead sales lead time but on the backlog once you've received the purchase order it's up to 2ear wait to get your battery from our competitors um but uh we've got capacity BLX has capacity uh and we're excited that where


our first few orders we expect to be able to deliver within 3 to 4 months and we hope to keep that lead time edge up so from an Investor's perspective how does this deal increase shareholder value so with a market cap of under $6 million uh and a a grid scale battery uh with a value of $1.5 million um it's not going to take much progress to to justify market cap of many times what our current market cap is so uh as well as the grid scale batteries as I mentioned before we're launching this line model uh th e market


is enormous the market is nent it's very very early days for the energy storage Market um our competitors are completely overwhelmed with demand the backlog is two years up to two years on the on the grid scale battery even on the residential battery um there there there's huge opportunity and so and then from a licensing model uh the licensing with giving exclusive territory allowing these uh battery installers uh these solar contractors people uh to expand their model to partner with us and get


exclusivity over territory we think that's going to be incredibly lucrative so uh you know with a $25,000 upfront payment if we would to sign uh 50 of those uh again we are and that's just the prepayment that's that they're not doing it just for those initial batteries the intention in a 500,000 person uh population and territory uh the intention is obviously to to sell hundreds of these per per territory so uh we we are very excited just on the best side of our business to demonstrate uh a


dramatic uh repricing of the uh of the block made share price so I guess this acquisition you know um uh represents your for into the uh clean energy space is this the first time uh is this your first for into the clean energy space and is block mate planning more acquisition similar to to this one Marilyn as I mentioned before we we began with with sonified in the clean energy space um so it it's not our first foray but it is our first foray into the energy storage sector um and uh we uh certainly don't expect to make uh such


an acquisition again we we we are very excited about the platform we've created so far uh in the CLE Tech space between sonifi and B and um best will take the lead sfide will form a part of uh our best strategy as in battery energy storage systems and uh there might be other uh opportunities that arise but they will all fall under the best opportunity for example uh I've spoken and my focus right now is on Distributing uh the BLX product portfolio but uh because this industry is so Dynamic uh we uh and the demand is


growing so rapidly we uh are looking uh from a very strategic point of view at the whole sector to identify where the supply chain bottlenecks are and where the opportunities are and we're having incredibly interesting conversations because the municipalities the governments uh and other countries such as Mexico are so committed to uh establishing these PL uh to uh Elevate the the capacity um we are part of those conversations and while we might not do a similar acquisition we certainly uh are open to


expanding uh uh through sites and so um you know as we near the end of 2023 what could the investor Community expect from block Beach for 2024 so extending to to what I was saying before uh it really is rolling out that strategy uh we're expecting lots of residential batteries uh we only need to sell a few a handful of $1.5 million batteries to to justify it of course we are incredibly motivated and excited to uh to do to do far more than that and the potential uh with the explosion in the in in their energy


space we encourage anyone to interested in our energy storage products and EV charging products from BLX and our other suppliers to contact me through Linkedin or through our blockate site o r through best usa.com we're offering exclusive territories as I mentioned before and to the early Distributors who claim the territory that they want it's going to be an exception lucrative opportunity for you in this fast growing industry well good luck and uh looking forward to hear more about this uh as


you complete this acquisition thanks so much Marilyn thanks for having me thank you and thanks everyone for watching join us again next time for another engaging conversation on CEO insights if you like this video make sure you subscribe to our Channel and turn on notifications so you don't miss future updates and interviews see you see you next [Music] time