Energy and Water Development Corp. Establishes Common Stock Equity Agreement to Support its Growth

Rhea-AI Summary

Energy and Water Development Corp (OTC PINK:EAWD) announced a $5 million common stock purchase agreement with an institutional investor to enhance market penetration and sales. The investor made an initial investment of $300,000 at market price. CEO Ralph Hofmeier emphasized that this funding will accelerate their growth trajectory and support operational cash flow. The company plans to utilize this capital for future expansions, potentially uplisting to a major national exchange. The financing structure allows for controlled timing of additional share sales, benefiting from stock price increases.

Positive

• Secured initial investment of $300,000 to support growth.
• Potential to raise an additional $5 million over 24 months.
• No dilution effects on current shareholders projected.
• Strategically positions the company towards uplisting on a national exchange.

Negative

• None.

Proceeds to Be Used to Increase Market Penetration and Sales

ST. PETERSBURG, FL / ACCESSWIRE / February 16, 2022 / Energy and Water Development Corp. (OTC PINK:EAWD) (the "Company"), an engineering company focused on delivering innovative and sustainable solutions of water and energy, today announced that it entered into a common stock purchase agreement and registration rights agreement (together, the "Agreements") with an institutional investor for up to $5 million worth of shares issuable over a 24-month period time, based upon the current market price of the stock at the time. Separately, upon entering into the Agreements, the investor made an initial fixed price equity investment of $300,000 at the then market price, no discount, which is subject to Rule 144 and a 6-month holding period.

Ralph Hofmeier, Chief Executive Officer of Energy and Water Development Corp., stated, "I want to reiterate that this investment is a step up for us, as the upfront capital of $300,000 is substantial for us to continue to grow our sales and it is in common stock equity at a fixed price. Of note, the common stock equity agreement will provide us additional growth capital to increase our sales and is at our control and discretion in regards to the amounts and timing. We believe this financing is not dilutive to current shareholders and enhances our value by increasing our cash and shareholder equity positions over time. It better positions us toward our capital markets goal for 2022-23 of an uplist to a major U.S. national exchange."

Hofmeier, continued, "We are extremely happy to partner with this institutional investor in regards to a common stock equity agreement. This is a major milestone for our Company, as we look to accelerate the number of active projects and revenue in 2022. Energy Development & Water is an emerging growth company going after a multi-billion-dollar market opportunity.If we had more capital to deploy, we could be growing much faster and this is a market that is rewarding growth. We are confident that the existing capital structure will support our operational cash flow requirements while providing the flexibility to achieve our growth targets. Plenty of high-profile public companies utilize similar equity agreements including American Battery Technology, Roku, Ballard Power among others, which have all seen their stocks perform very well post announcements. Of extreme importance to us was the faith and enthusiasm of the investor to provide a $300,000 upfront investment at a fixed equity price and our control over the timing and amounts of future equity capital which allows us to take advantage of sudden increases in our stock price."

Following the initial investment, and subject to the conditions of the Agreements, including that a registration statement is filed and declared effective with the Securities and Exchange Commission the Company has the right, in its sole discretion, to sell up to an additional $5 million worth of shares over a 24-month period. The Company will control the timing and amount of any sales to the investor and the investor is obligated to make purchases in accordance with the Agreements.

There are no upper limits to the price per share the investor may pay to purchase common stock and the purchase price of the shares will be based on the then prevailing market prices of the Company's shares at the time of each sale. No warrants, derivatives, financial or business covenants are associated with the Agreements.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor will there be any sale of these securities in any jurisdiction in which such offer solicitation or sale are unlawful prior to registration or qualification under securities laws of any such jurisdiction.

Energy and Water Development Corp.

Energy and Water Development Corp. (OTC PINK:EAWD) is an engineering solutions company focused on delivering innovative and sustainable solutions of water and energy. EAWD builds its systems out of proven technologies, using their technical know-how to customize solutions to their clients' needs. The Company offers design, construction, maintenance and specialty consulting services to private companies, government entities and non-government organizations (NGOs).

For additional information, please visit: https://energy-water.com

Forward-Looking Statements:

Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results, performance, and opportunities that involve substantial risks and uncertainties. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "target," "intend" and "expect" and similar expressions, as they relate to Energy and Water Development Corp., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

Corporate:
investor.relations@energy-water.com

Investor Relations Contact:
Brian Loper
ClearThink
bloper@clearthink.capital
p347-413-4234

SOURCE: Energy and Water Development Corp.

View source version on accesswire.com:
https://www.accesswire.com/688931/Energy-and-Water-Development-Corp-Establishes-Common-Stock-Equity-Agreement-to-Support-its-Growth

FAQ

What did Energy and Water Development Corp announce on February 16, 2022?

On February 16, 2022, Energy and Water Development Corp announced a $5 million common stock purchase agreement with an institutional investor.

How much money was initially invested by the institutional investor in EAWD?

The institutional investor made an initial investment of $300,000 at market price.

What are the intended uses of the proceeds from EAWD's stock purchase agreement?

The proceeds are intended to increase market penetration and sales for Energy and Water Development Corp.

Will the agreement with the investor dilute existing shareholders of EAWD?

The company believes that the agreement will not dilute current shareholders.

What is the stock symbol for Energy and Water Development Corp?

The stock symbol for Energy and Water Development Corp is EAWD.