CellCube Energy Storage Systems Inc. (CSE: CUBE) (OTCQB: CECBF) (Frankfurt: 01X) is pleased to announce a CDN $15,000,000 equity financing to be conducted through a non-binding drawdown facility over a term of twenty-four months provided by Alumina Partners LLC, a New York-based private investment partnership that specializes in investing in emerging growth companies, through its wholly-owned subsidiary Alumina Partners (Ontario) Ltd.
The Facility provides for equity private placement offerings by CellCube to Alumina Partners in drawdown amounts of up to CDN $1,000,000 per week, at the sole discretion of CellCube. Alumina Partners has committed to purchase up to CDN$15,000,000 of units of the Company. Each unit consists of one common share and one half of one common share purchase warrant, and each unit being purchased at a discount ranging from 15% to 25% of the then current market price of the Common Shares. The exercise price of the Warrants will be at a 25% premium over the then current market price of the Common Shares, subject to an acceleration clause should the 10-day volume weighted average price of the Common Shares be equal to or greater than 180% of the Warrant exercise price prior to the expiry date of the applicable Warrants.
The purpose of the Facility is to provide CellCube with financial flexibility and unilateral control over the financing of its working capital requirements while managing and limiting dilution. This Facility will provide efficient access to capital as deemed necessary by the Board of Directors of the Company. The Facility is non-exclusive in terms of equity capital raising by CellCube.
“We are very pleased that Alumina Partners has selected CellCube to represent its first investment in the fast growing energy storage sector,” said Mike Neylan, CEO of CellCube. “The grid connected storage market is expected to grow 44% annually with the market size reaching US $18 billion by 2024, according to Navigant Research. The energy storage industry is in a similar place to where the solar industry was in 2005-2006. It is on the verge of a tipping point to mass deployment.”
“CellCube has received interest by institutional investors in both North America and Europe and we are delighted to have entered into this financing arrangement with Alumina Partners who have been very active investors in high-growth Canadian companies,” added Mr. Neylan.
“The emergence of the microgrid as a mandatory adjunct to all the aspirational goals of the Paris accord, and the resulting urgent need for non-volatile, scalable energy storage systems, represents the latest wave in renewable energy and carbon reduction enterprise investing,” said Adi Nahmani, Managing Member of Alumina Partners, LLC. “We are delighted to support CellCube in their continued market leadership as they deploy tailored, intelligent storage solutions across the globe.”