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EnviroMission to get $120 million financing for solar tower project
First tranche will take form of shares or 12-month convertible note
By Angela McDaniels
Tacoma, Wash., Sept. 2 – EnviroMission Ltd. arranged an up to $70 million private placement with Valentia Co. Ltd. that will have two closings, and the investor agreed to invest another $50 million at the project company level.
Valentia is expected to provide $10 million by Sept. 30. It will either buy 50 million shares at $0.20 per share or a 12-month non-interest bearing convertible note with a conversion price of $0.20 per share, according to a company news release.
The price per share is a 42.9% premium to the company’s closing share price of $0.14 (OTC: EVOMF) on Sept. 1.
Within nine months of the initial closing, Valentia will provide $50 million of additional funding or, if the initial payment is made via a convertible note and the note is not converted, $60 million.
The issue price of the subsequent placement shares will be the greater of $0.20 or market price. The investor will receive half of an option per share issued at 1.5 times the subsequent placement share price. These options will have an expiration date of three years from the date of issue.
The financing will take the proposed La Paz Solar Tower development to the project finance stage and provide EnviroMission with development capital for additional projects.
In addition, Valentia, at its discretion, has agreed to invest $50 million into the La Paz Solar Tower Development at the project company level, and it will have the right, but not obligation, to invest $50 million or more per Solar Tower Project at the project company level as potential additional investments.
EnviroMission develops solar tower renewable energy technology and is based South Melbourne, Australia.
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