Bankrupt Italian electric motorcycle manufacturer Energica facing liquidation
Italian electric sports motorcycle manufacturer Energica Motor Company SpA has announced that it has entered a bankruptcy judicial liquidation process.
The 'Bologna Motor Valley' based business was officially founded in 2014 by CRP Group, as Energica Motor Company Srl, based on a design phase that began in 2009. The company had established itself as one of the world's leading electric motorcycle pioneers, specialising in sport and performance bikes - very much a 'top-end' and highly innovative electric mobility manufacturer.
Its technical know-how has long been considered the company’s main asset, with Energica "introducing four technological platforms to the market and serving as the unique manufacturer of the fourth MotoGP electric category - the FIM Enel MotoE World Cup - for four consecutive years.
"Despite the challenges posed by the global pandemic, Energica achieved record sales volumes and revenues with the launch of the Experia model. Energica's entrepreneurial vision has been supported and financed from the outset by its founding partners, who in 2016 decided to list the company in the AIM Italia sector (now known as the Milan based Euronext Growth stock market)."
Unable to sustain the capital demands alone, the listing in a market that is dedicated to "innovative Italian small and medium sized enterprises", the listing secured the necessary capital for growth that it needed at that stage. The company was listed with a capitalisation of € 37.3m.
In 2021, with the investment from New York Stock Exchange listed Ideanomics Inc., Energica launched the Experia model, achieving record sales volumes and revenues of € 13m, a 200% increase compared to 2021.
"In March 2022, Ideanomics successfully completed a voluntary takeover bid, which allowed the shareholders to transform the company into a private entity, making it more free and flexible in managing financing and agile in its growth".
Ideanomics took a 75% controlling interest in Energica, with the balance of the shares retained by the existing investors and management.
"However, the subsequent crisis in the electric market and the decline in sector investments impacted Ideanomics, and, consequently, compromised Energica's investment capabilities. The company has also faced challenges from the downturn in the automotive market and supply chain, being particularly affected as a small and medium-sized enterprise".
Having recently avoided eviction from its premises and with talk of strike action circulating, Energica states that its "commitment to its objectives and mission has remained steadfast, as demonstrated by initiatives like the recent solidarity contract [with the Italian Government's Social Security Institute] aimed at safeguarding workers jobs and salaries and overcoming the difficult period.
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| Shane McMahon, Ideanomics' Executive Chairman, seen here with Energica CEO Livia Cevolini in 2021, when Ideanomics increased its minority ownership stake from 20% to a majority 70%, then eventually 75% position. Though still listed as Executive Chairman, McMahon was not among the existing and former senior Ideanomics executives censured and fined by the SEC in August this year. |
"Despite the efforts of the management to actively and extensively pursue a search for new investors, it had become clear that alternative options were not viable, thus leaving the company with no other choice than to open a bankruptcy process - one that will allow repayment of creditors to the greatest extent possible from the proceeds of liquidation".
The October 14 press release announcing the start of the bankruptcy proceedings was drawn up and released by the management and minority shareholders in Italy. They concluded the news release by noting that "Ideanomics has chosen not to comment".
No surprise. The Ideanomics NYSE listing had already been suspended in August, with the value of its shares having been effectively devalued to 'junk' status. The SEC issued former and current company officers and senior executives with fines and penalties totalling several million Dollars, with rumours of possible potential criminal fraud proceedings swirling.
Itself founded in 1970, the highly respected CRP Group is an Italian industrial group specialising in additive manufacturing, Rapid Prototyping and high-precision machining services in the motorsport, automotive, aerospace, marine, design, medical and UAV sectors.
CRP launched the first Energica model, the Ego sportbike in 2013, followed by the Eva hypernaked the following year. That was followed by the retro naked EsseEsse9 in 2017. All three were based on the same powertrain with a 13.4 kWh battery and 150 km range. Battery sizes eventually included 21.5 kWh units. Production started in 2016 following the AIM Italia stock exchange listing. Energica partnered with Dorna Sports for the launch of the FIM Enel MotoE World Cup in 2017.
After it had been announced that Ducati would replace Energica as manufacturer of the 'Spec' bike for the series, Energica launched Experia, its 21.5 kWh battery powered EMCE engine platform 'Green Tourer' ADV in 2022. That year also saw the company launch its 'Energica Inside' OE supplier business unit and achieve record sales volumes and revenues of € 13m.