TORONTO, ONTARIO / ACCESSWIRE / September 29, 2020 / Electrovaya Inc. ("Electrovaya") (TSX:EFL)(OTCQB:EFLVF) completed the repayment of its $15 million unsecured 9% convertible debentures by the payment of the remaining $2 million due September 29, 2020 to the debenture holder, an institutional investor. The terms of the debentures were previously amended as disclosed in a news release dated April 8, 2020 and have now been fully repaid.
To repay the remaining amount outstanding under the debentures, Electrovaya amended an existing promissory note with a Canadian financial institution to increase the amount outstanding thereunder from $2.83 million to $6 million, which allowed the repayment of the remaining $2 million of the debentures and made an additional $1.17 million available for Electrovaya's use for general corporate purposes.
Electrovaya had also previously entered into two purchase order facilities of $5.5 million and $4.5 million for a total of $10 million from the same Canadian financial institution. Both these facilities have recently been repaid from Electrovaya's operating cash flows. These loans were specifically for the fulfilment of battery deliveries to Walmart Canada and to a Raymond Corporation client in the USA, respectively.
Electrovaya continues to operate a $7 million revolving working capital credit facility for its growing business in lithium ion batteries. All currencies above are in Canadian dollars.
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About Electrovaya Inc.
Electrovaya Inc. (TSX:EFL)(OTCQB:EFLVF) designs, develops and manufactures proprietary Lithium Ion batteries, battery systems, and battery-related products for energy storage, clean electric transportation and other specialized applications. Electrovaya is a technology focused company with extensive IP. Headquartered in Ontario, Canada, Electrovaya has production facilities in Canada with customers around the globe.
To learn more about how Electrovaya is powering mobility and energy storage, please explore www.electrovaya.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, including statements that relate to, among other things: the anticipated satisfaction of outstanding debt and the timing thereof; the terms of the loan and promissory note facility; and the Company's objectives, goals, strategies, intentions, beliefs, expectations and estimates. Forward-looking statements can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "possible", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective" and "continue" (or the negative thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and investors should place undue reliance on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Material assumptions used to develop forward-looking information in this news release include, among other things, that the Company will be able to satisfy its outstanding debt within contractually agreed upon timeframes, that customers will continue to make and increase orders for the Company's products, that the Company's alternate supply chain will be adequate to replace material supply and manufacturing and that the Company will be able to operate effectively and have adequate liquidity and capital resources to continue operations and satisfy purchase orders during the ongoing global pandemic crisis related to COVID-19, which has negatively impacted, among other things, global supply chains, raw material availability, employee availability, and customer capacity. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company's Annual Information Form for the year ended September 30, 2019 and in the Company's most recent annual and interim Management's Discussion and Analysis under "Risk and Uncertainties" as well as in other public disclosure documents filed with Canadian securities regulatory authorities. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: Electrovaya, Inc.