iPower (IPW) investor relations material

Executive summary

• Special Meeting scheduled to vote on major stock issuance proposals, including a $30 million stock issuance for the acquisition of Pacelor and a $10 million stock offering, both potentially exceeding 20% of current outstanding shares.

• The Pacelor acquisition aims to integrate logistics, fulfillment, and proprietary AI technology, with the transaction structured as a related-party deal due to a director's ownership in Pacelor.

• Both proposals are designed to comply with Nasdaq Listing Rules regarding significant stock issuances and potential changes of control.

• The Board unanimously recommends approval of all proposals, emphasizing strategic benefits and compliance.

Voting matters and shareholder proposals

• Proposal 1: Approve issuance of up to $30 million in common stock for the acquisition of Pacelor, potentially resulting in a change of control.

• Proposal 2: Approve issuance of up to $10 million in common stock in private placements or public offerings, possibly at a discount to market price.

• Proposal 3: Approve adjournment of the meeting if more time is needed to solicit votes or establish a quorum.

• Shareholders may submit proposals for future meetings, subject to SEC rules and deadlines.

Board of directors and corporate governance

• The Special Committee, composed solely of disinterested directors, oversees the Pacelor acquisition process.

• Director Yi Yang, a 50% owner of Pacelor, is recused from all deliberations and recommendations regarding the acquisition.

• Board recommends voting in favor of all proposals and will disclose final voting results in a Form 8-K.