Alkaline Fuel Cell Power Corp. (NEO:PWWR.AQN) said it has arranged a convertible note financing for an aggregate amount of up to $1 million.
"As per our 2023 Priorities, securing additional access to cash is paramount to our success. This additional $1m convertible note financing coupled with our access to our $4m in convertible debt note financing announced on November 18, 2022, builds our capacity to support upcoming CHP projects, acquisitions, fuel cell business and working capital," commented Frank Carnevale, Alkaline Fuel Cell Power chief executive officer in a statement. "We continue to be focused to achieve EBITDA-process over the coming 4-6 quarters."
The company said the convertible note will allow it to access up to C$1 million on an aggregate basis and can be drawn on at the request of the company.
READ: Alkaline Fuel Cell Power targeting ‘EBITDA-positive platform’ in next 4-6 quarters
The convertible note will mature 36 months following the closing of the financing. Outstanding amounts under the convertible note will be convertible at the option of the holders into common shares in the capital of the company, subject to the policies of the Neo Exchange at a conversion price equal to the closing price of the common shares on Neo the day prior to the date of conversion, as adjusted under the terms of the convertible note, at any time prior to the maturity date, subject to the terms of the note.
The convertible note bears an interest of 10% per annum which will be applied to all outstanding amounts drawn under the note. In consideration for entering into the financing, the company will also issue 2 million common shares to the holder.
It is expected that any funds drawn under the convertible note, will be used for general corporate and administrative purposes.
All securities issued in connection with the financing are subject to a four-month and one-day hold period in accordance with applicable Canadian securities laws, during which time the securities may not be traded.
On November 18, 2022, Alkaline Fuel Cell Power announced the closing of a convertible note financing in an aggregate amount C$4 million. The company said it has yet to utilize any of the amount.
Alkaline Fuel Cell Power Corp is a diversified investment platform developing affordable, renewable, and reliable energy assets and cleantech. It combines a stable revenue stream with a future-forward vision to commercialize its advanced hydrogen fuel cell technology to meet the massive global market need, and ultimately generate compelling returns for investors.
The company operates through two global entities: Fuel Cell Power NV, a wholly owned subsidiary in Belgium, and PWWR Flow Streams (PWWR Flow), an Alkaline Fuel Cell Power brand in Canada.
Contact the author at jon.hopkins@proactiveinvestors.com