Eos Energy arranges USD-200m standby equity purchase agreement
The Eos Energy Block containerised solution. Source: Eos Energy Enterprises Inc
April 29 (Renewables Now) - US zinc-based energy storage solutions provider Eos Energy Enterprises Inc (NASDAQ:EOSE) said on Thursday it secured a USD-200-million (EUR 189.2m) financing commitment from an affiliate of alternative investment manager Yorkville Advisors.
Eos said it had entered into a common stock standby equity purchase agreement (SEPA), under which it is given the right, but not the obligation, to sell up to USD 200 million of common equity to Yorkville’s affiliate.
The agreement has a two-year term, during which Eos can sell the equity an any time, the company said.
Eos will issue the shares to the investor at a discounted price of 97.0% of the three-day volume-weighted average prices. The SEPA also allows for pre-advance loans in the aggregate principal amount not to exceed USD 50 million per loan, pursuant to a promissory note which is subject to the mutual consent of the parties, Eos further said.
“We are seeing rapid demand growth in stationary energy storage which requires additional capital to further expand manufacturing capacity and product development,” commented Joe Mastrangelo, Eos CEO. “This financing commitment is a key enabler to continue our positive growth trajectory and we’re thrilled to partner with Yorkville at this crucial point in Eos’ journey.”
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