15th March 2018
Data source: S&P Global Market Intelligence
Stina Resources Ltd. said March 13 that it plans to raise up to C$10 million via a convertible debenture financing to complete its purchase of the assets of insolvent firm Gildemeister Energy Storage GMBH and for working capital.
Austria-based Gildemeister has been developing vanadium redox flow batteries, including its patented CellCube battery, which is used for grid storage and other industrial applications.
The debentures will be secured by a general security interest over all of the company’s assets, mature on the second year of issuance and bear interest at a rate of 9.0% per year.
Each debenture is convertible into Stina units at 60 cents apiece. Each unit, meanwhile, will consist of one share and one-half of a share purchase warrant, with each whole warrant exercisable to acquire one share at C$1.00 for a three-year period from issuance.
In addition, the company agreed to acquire Jet Power And Control Systems Ltd., a provider of custom and off-the-shelf electrical equipment and systems, for 6 million shares.
According to Stina, the completion of both asset purchase deals will allow the company to take advantage of the global demand for vanadium redox flow batteries.
