Cold-energy storage firm Nostromo gets two new investors in US market push

Nostromo's Icebrick system (Photo: Nostromo)

November 11 (Renewables Now) - Israeli ice-based thermal energy storage developer Nostromo Energy Ltd (TLV:NOST) has secured a combined incremental investment of up to USD 15.5 million (EUR 13.4m), which will be deployed to expand its presence on the US market.

Nostromo is issuing ordinary shares for some USD 9.1 million in total, through a private placement at USD 10.80 per share. The amount is divided between USD 7 million committed by domestic insurance and financial services business Migdal Group (TLV:MGFL), with the other USD 2 million pledged by Freepoint Commodities, a US commodities and energy trader and renewable projects developer.

The agreement also provides for non-tradable 30-months’ warrants for an additional investment of USD 6.4 million. Migdal will provide USD 5 million of that amount, with the remaining USD 1.4 million to come from Freepoint. The warrants are priced at USD 15.10 per share, representing a 40% premium on the share issuance price.

The proceeds of the stock sale will go towards growing Nostromo's business operations in the US market as well as expanding its R&D, software, engineering, project management, production, Q&A, regulatory and US sales and marketing organisation.

Nostromo is working to commercialise an ice storage system that preserves energy at times of low electricity demand or surplus renewable energy generation, and releases it for cooling when the grid faces high electricity demand for air conditioning. The company went public in June through a merger with domestic software firm Somoto.

(USD 1 = EUR 0.865)

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