Mississauga, ON (pcJ News Briefs) – Electrovaya Inc. (TSX: EFL; OTCQX: EFLVF) intends to close a non-brokered private placement of convertible unsecured subordinated debentures for gross proceeds of up to $25 million. The offering may close in one or more tranches, but in any event no later than March 31, 2017.
Electrovaya has already entered into a binding subscription agreement with a lead investor with respect to $15 million principal amount of debentures.
The company has retained Origin Merchant Securities Inc. as its exclusive financial advisor on the offering.
The debentures will have a term to maturity of 36 months and bear interest at a rate of 9% per annum, payable semi-annually. Electrovaya may elect, from time to time, subject to applicable regulatory approval, to satisfy its obligation to pay interest on the debentures (i) in cash, or (ii) by issuing the equivalent value in common shares at a price per share equal to the 20 trading day volume-weighted average trading price (VWAP) of the common shares on the TSX ending five trading days preceding the applicable interest payment date.
Holders of debentures may, at their option, at any time, and from time to time, up to and including the business day immediately preceding the maturity date, convert all or any part of the outstanding principal amount of the debentures into common shares at a price of $2.15 per common share for no additional consideration, subject to a minimum conversion amount of $50,000.
Subscribers for debentures will also be issued warrants to purchase common shares on the basis of 116 warrants per each $1,000 principal amount of debentures. Each warrant will be exercisable at an exercise price of $2.80 per warrant share for a period of 36 months from the respective closing date of any tranche of the offering.
Electrovaya designs, develops and manufactures proprietary Lithium Ion Super Polymer batteries, battery systems, and battery-related products for energy storage, clean electric transportation and other specialized applications. Electrovaya, through its fully owned subsidiary, Litarion GmbH, also produces cells, electrodes and SEPARION ceramic separators and has manufacturing capacity of about 500MWh/annum.
photo credit: Electrovaya