Zinc8 Energy Solutions (CSE:ZAIR) Inc announced that it has received approval from the Ulster County Industrial Development Agency (UCIDA) to issue tax-exempt revenue bonds for up to US$10 million to undertake the buildout and completion of the company's first commercial manufacturing facility within Ulster County, New York.
The low-cost zinc-air battery developer said proceeds from the US$10 million offering are expected to be utilized for the acquisition of machinery, equipment, fit-up and improvements to the facility.
“Our company is very grateful for the issuance of the US$10 million revenue bond, as it supports the company's long-term plan to make Ulster County Zinc8's US base for assembly and manufacturing of our Zinc-air Energy Storage systems,” Zinc8 Energy Solutions (CSE:ZAIR) CEO Ron MacDonald said in a statement.
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“This bond combined with the US$9 million tax incentive package recently awarded to Zinc8 by Governor Hochul through the Excelsior Jobs Program, is expected to cover a substantial portion of the initial investment into the plant,” MacDonald added.
Zinc8 noted that once a lease has been entered into for its inaugural manufacturing facility in the US, the company expects that additional financial investment will need to be made into the facility over the first three years after taking possession.
The company added that it is currently reviewing the capital requirements to fund the buildout of the manufacturing facility and will provide any updates as they arise.
As well, Zinc8 said it continues to work diligently towards securing a lease for it manufacturing facility in Ulster County and pursuing options for financing the manufacturing facility build out, completion of ongoing product demonstrations, commercialization of the its battery products, and ongoing working capital requirements.
Additional funding will be required beyond the municipal bond and tax incentives in order to fund the build out of the manufacturing facility and commercialization of its product through the first three years after Zinc8 secures possession of a manufacturing facility, according to the company.
Zinc8 Energy Solutions has assembled an experienced team to execute the development and commercialization of a dependable low-cost zinc-air battery. This mass storage system offers both environmental and efficiency benefits. Zinc8 strives to meet the growing need for secure and reliable power.
Contact Sean at sean@proactiveinvestors.com