Magnis Energy Technologies (ASX:MNS) has provided bridging finance to its US-based subsidiary Imperium3 New York (iM3NY) to assist with plant enhancements for its gigawatt scale lithium-ion battery manufacturing plant in Endicott, New York.
Magnis has provided $17.575 million inclusive of interest, fees and other amounts over time for $18.5 million worth of shares (prepayment credit) in the event it exercises its right to convert this to equity instead of receiving repayment of the bridging finance.
The finance has been provided to iM3NY LLC as it progresses its long-term funding initiatives.
The company says the bridging finance will assist with enhancing production efficiencies to meet customer demand, and provides additional working capital as iM3NY finalises independent certification and its long-term funding plans.
the bridging finance will assist with enhancing production efficiencies to meet customer demand, and provides additional working capital as iM3NY finalises independent certification and its long-term funding plans
The prepayment credit will convert to a lower of the valuation of US$300 million or a 10% discount to the value utilised for the next equity funding round.
Magnis notes that if it executes this right the ownership level in LLC would increase materially above the current level of 62%, with a correspondence increase in the asset value of its holdings in LLC.
Other terms of the bridging finance include an interest rate of 10% per annum to be paid annually upfront, as well as a total term timeframe of 24 months.
The company also notes the bridging finance has been delivered following completion of a funding round from L1 Capital Global Opportunities Master Fund and Regal Funds Management, as announced by Magnis last week.
The funding was structured as an equity-linked prepaid share subscription facility agreement for a total of up to $50 million subscription credit and placed its balance sheet in a ‘strong’ position to accelerate development of its vertically integrated AAM business.
Magnis Energy Technologies is an ASX-listed vertically integrated lithium-ion battery technology and materials company focused on producing, together with its US-based technology partner C4V LLC, high-performance anode active materials for lithium-ion batteries utilising its ‘high-purity’ graphite feedstock from its Nachu Graphite Project in Tanzania.
The company’s vision is to enable, support, and accelerate the mass adoption of electric mobility and renewable energy storage critical for the green energy transition.
Images: Magnis Energy Technologies Ltd
