Electrovaya Inc. Closes US$11.1 Million Public Offering of Common Shares

Rhea-AI Summary

Electrovaya Inc. (NASDAQ:ELVA)(TSX:ELVA) has completed its public offering of 5,175,000 common shares at US$2.15 per share, raising gross proceeds of approximately US$11.1 million. Roth Capital Partners served as the sole book-running manager, with Raymond James and Craig-Hallum Capital Group as co-lead book-running managers. The company granted Roth a 45-day over-allotment option for up to 776,250 additional shares. The proceeds will be used to satisfy Export-Import Bank loan conditions, repay existing working capital facility, and cover costs related to the Jamestown, New York manufacturing facility purchase.

Positive

• Secured US$11.1 million in gross proceeds through public offering
• Potential for additional capital through 776,250 share over-allotment option
• Strengthening balance sheet through debt refinancing

Negative

• Shareholder dilution through issuance of 5,175,000 new common shares
• Additional potential dilution if over-allotment option is exercised
• Offering price of US$2.15 per share indicates capital raised at current market conditions

Insights

Financial Analyst

This $11.1 million equity raise through a public offering significantly bolsters Electrovaya's balance sheet. Priced at $2.15 per share, the offering represents about 15% dilution to existing shareholders. The strategic allocation of funds towards satisfying Export-Import Bank loan conditions and refinancing working capital facilities indicates a broader financial restructuring. The manufacturing facility in Jamestown, NY remains a key focus for capital deployment. While dilutive in the short term, this financing strengthens the company's position to execute its growth strategy in the lithium-ion battery market. The involvement of reputable underwriters like Roth Capital Partners and Raymond James adds credibility to the offering.

Manufacturing Industry Analyst

The capital raise provides essential funding for Electrovaya's Jamestown facility, a critical component of their manufacturing expansion strategy. The timing aligns with growing demand for lithium-ion batteries in North America, particularly given the push for domestic battery production. The Export-Import Bank backing suggests strong government support for expanding U.S.-based manufacturing capabilities. The refinancing of working capital facilities should optimize operational efficiency and production capacity. This moves Electrovaya closer to achieving meaningful scale in the competitive battery manufacturing landscape.

TORONTO, ONTARIO / ACCESSWIRE / December 18, 2024 / Electrovaya Inc. ("Electrovaya" or the "Company") (NASDAQ:ELVA)(TSX:ELVA), a leading lithium-ion battery technology and manufacturing company, has successfully closed its previously announced public offering (the "Offering") of 5,175,000 common shares in the capital of the Company (the "Common Shares") at a price to the public of US$2.15 per Common Share (the "Offering Price") for gross proceeds of approximately US$11.1 million, before deducting the underwriting discounts and commissions and estimated expenses incurred in connection with the Offering.

Roth Capital Partners ("Roth") acted as sole book-running manager, and Raymond James Ltd. and Craig-Hallum Capital Group LLC acted as the co-lead book-running managers in the Offering.

The Company has granted Roth a 45-day over-allotment option to purchase up to an additional 776,250 Common Shares at the Offering Price, less underwriting discounts and commissions.

The Company intends to use the net proceeds from the Offering to satisfy conditions associated with the loan approved by the Export-Import Bank of the United States announced by the Company on November 14, 2024, repayment of amounts under the Company's existing working capital facility in advance of proposed bank refinancing and for the costs of such financing, and satisfaction of certain outstanding amounts in connection with the purchase of the Company's Jamestown, New York manufacturing facility.

The Common Shares were offered in the United States pursuant to a shelf registration statement (including a prospectus supplement thereto) previously filed with and declared effective by the Securities and Exchange Commission (the "SEC") on September 25, 2024 in accordance with the Multijurisdictional Disclosure System established between Canada and the United States, and were qualified for distribution in the provinces and territories of Canada by way of a prospectus supplement to the Company's base shelf prospectus dated September 17, 2024. No securities were sold in the Province of Québec.

The prospectus supplement and accompanying shelf registration are available for free on the SEC's website at www.sec.gov and the prospectus supplement and accompanying base shelf prospectus filed in Canada are available on the Company's profile on the SEDAR+ website at www.sedarplus.ca. Copies of the prospectus supplement and accompanying prospectus relating to the Offering may also be obtained by contacting Roth Capital Partners, LLC at 888 San Clemente Drive, Newport Beach CA 92660 by phone at (800)-678-9147 or e-mail at rothecm@roth.com.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.

Investor and Media Contact:

Jason Roy
VP, Corporate Development and Investor Relations
Electrovaya Inc.
905-855-4618 / jroy@electrovaya.com

About Electrovaya Inc.

Electrovaya Inc. (NASDAQ:ELVA)(TSX:ELVA) is a pioneering leader in the global energy transformation, focused on contributing to the prevention of climate change by supplying safe and long-lasting lithium-ion batteries without compromising energy and power. The Company has extensive IP and designs, develops and manufactures proprietary lithium-ion batteries, battery systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications. Electrovaya has two operating sites in Canada and a 52-acre site with a 135,000 square foot manufacturing facility in Jamestown New York state for its planned gigafactory. To learn more about how Electrovaya is powering mobility and energy storage, please explore www.electrovaya.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding the anticipated use of proceeds from the Offering and the over-allotment option granted in connection with the Offering. Forward-looking statements can generally, but not always, be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "possible", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective" and "continue" (or the negative thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements are necessarily based on assumptions, and involve risks and uncertainties, therefore undue reliance should not be placed on such statements. Material assumptions on which forward-looking statements in this news release include assumptions about the ability to complete a loan financing with EXIM and the market price of the Common Shares. Material risks and other factors that could cause actual results to differ from any forward-looking statement include market conditions and other risks that may be found in the prospectus supplement and base shelf prospectus filed in connection with the Offering, including those risks described under the heading "Risk Factors", and the documents incorporated by referenced therein. The Company does not undertake any obligation to update publicly or to revise any of the forward looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: Electrovaya Inc.

View the original press release on accesswire.com

FAQ

How much did Electrovaya (ELVA) raise in its December 2024 public offering?

Electrovaya raised approximately US$11.1 million in gross proceeds through the offering of 5,175,000 common shares at US$2.15 per share.

What is the over-allotment option granted in ELVA's December 2024 offering?

Electrovaya granted Roth Capital Partners a 45-day over-allotment option to purchase up to 776,250 additional common shares at US$2.15 per share.

How will Electrovaya (ELVA) use the proceeds from its December 2024 offering?

The proceeds will be used for Export-Import Bank loan conditions, repayment of working capital facility, and costs related to the Jamestown, New York manufacturing facility purchase.

Who were the underwriters for ELVA's December 2024 public offering?

Roth Capital Partners acted as sole book-running manager, while Raymond James and Craig-Hallum Capital Group served as co-lead book-running managers.