Magnis Energy Technologies Ltd (ASX:MNS, OTCQX:MNSEF)’s Gigawatt-scale lithium-ion battery manufacturing project and subsidiary Imperium3 New York, Inc (iM3NY) has completed a US$100 million (A$135 million), three-year intellectual property (IP) based financing, partnering with Atlas Credit Partners (ACP) and Aon.
Magnis along with its joint venture and technology partner Charge CCCV LLC (C4V) are the major shareholders in iM3NY.
The loan facility has refinanced the existing US$50 million (A$67 million) four-year Riverstone senior secured loan obtained by iM3NY in April 2021 and supports iM3NY’s long-term growth plans.
Factory progress
iM3NY has made significant progress in the construction of its first Gigawatt-scale factory. A portion of the net proceeds will be used to fast-track growth plans and look to expansion.
The new loan facility is set for three years and provides additional capital cost reductions for iM3NY based on certain milestones.
It also adds cash to the project balance sheet, increasing its financial flexibility and ability to take advantage of new opportunities.
“IP the lifeblood”
iM3NY chairman and president Dr Shailesh Upreti said the company continued to remain at the forefront of innovation by pioneering the next generation of chemistry, industry leading advanced cell designs and processes as well as the associated supply chain.
“While intellectual property is the lifeblood of any technology company driving majority of the value, its importance in a highly crowded market like lithium-ion batteries is even more consequential.”
The arrangement is strong validation of C4V’s patented technology through then IP backed loan with credit wrap insurance arranged through Aon.
iM3NY CEO Chaitanya Sharma said, “This financing will serve to accelerate our production ramp-up plans and bring our cells to serve our trusted customers.
“2022 has been, and will continue to be, a very exciting chapter in iM3NY’s success story.”
- By Duncan Bailey