- Independence Power Holdings (OTC: ITXP) completed a reverse merger with TriUnity, shifting from a Malaysian shell to a U.S.-focused energy tech platform.
- It targets ERCOT’s Permian Basin power shortfall with behind-the-meter, software-managed microgrids using a 241 MW, 104-unit battery fleet under an asset-light Power-as-a-Service model.
- Control is highly concentrated via high-vote Class B shares (~94.33% held by affiliated insiders), with a planned 7-for-1 split and warrants that could materially dilute public holders.
- The strategy emphasizes rapid deployment versus long interconnection queues and converting stranded gas into onsite power, but execution, regulatory, and financing risks remain.
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On December 30, 2025, Independence Power Holdings, Inc. merged with TriUnity Business Services Ltd. in a reverse merger transaction, thus establishing a public reporting entity under OTC ticker ITXP. Looking ahead, the firm’s ambition is to capitalize on increasing power demand in the Permian Basin—a region forecasted to be short 8-13 GW of grid supply under ERCOT oversight.
Operationally, the core offering is deploying behind-the-meter microgrids via a 241 MW, 104-unit battery fleet owned by a cooperative, managed under a PaaS model. The company provides proprietary software, monitoring, maintenance, and customer service under a five-year renewable asset management agreement. This structure reduces capex exposure and shifts risk but hinges heavily on execution, battery performance, utilization rates, and regulatory conditions.
From a governance perspective, the equity structure is highly concentrated: Class B shares carry ten votes each, mainly owned by Independence Investors LLC and Energizer Systems LLC (~94.33%), ensuring control. A planned 7-for-1 forward split increases share counts significantly, and a warrant agreement grants up to nearly 8.9 million Class A shares (~19% fully diluted) to a cooperative. These instruments introduce potential dilution and liquidity overhang and complicate valuation for public‐market investors.
Strategic implications include potential first-mover advantage in Permian local generation for oil & gas and AI infrastructure, plus value creation via converting stranded gas to power, reducing fuel and interconnection costs. Competition from firms like ProPetro’s ProPWR shows an increasing power‐services arms race. Regulatory risk (natural gas conversion, grid access), technological risk (storage performance, software reliability), and capital risk (raising funds, managing dilution, liquidity on OTC market) loom. Key open questions: What are the margins and pricing power? How will demand forecasts evolve? What regulatory approvals or incentives might accelerate or impede this business? What is the path to profitability and cash flow generation?
Supporting Notes
- The reverse merger was completed December 30, 2025, making Independence Power Holdings the parent of Independence Power, Inc., which now conducts the core operations.
- Consideration for the merger was approx. US$3,000 (US$0.003 million) in equity—32 million common shares of the new Independence Power Holdings issued for TriUnity.
- Following the merger, Independence Investors LLC and its affiliate Energizer Systems own ~94.33% of outstanding common stock, largely via Class B shares carrying ten votes per share.
- Capital structure calls for a 7-for-1 forward split, expanding shares to over 800 million authorized (566 million Class A, 224 million Class B), excluding warrants.
- A warrant agreement grants BESS Rural Energy Cooperative up to 8,901,852 Class A shares (about 19% fully diluted at issue) for US$32 million aggregate exercise price.
- The BESS fleet: 241 MW across 104 units, owned by a cooperative, asset-light model: company provides proprietary software, operational management, via five-year renewable term with automatic renewals.
- The power shortfall in Permian: estimated at 8–13 gigawatts by ERCOT’s S&P Global demand forecast, creating instability in power quality (