Magnis Energy Technologies has secured $8 Million in funding from Middle East-based Negma Group.
Negma will provide up to $8 Million over the course of 12 months with a maximum monthly subscription of $700,000.
The price of the shares issued will be at an 8% discount to the previous ten day Volume Weighted Average Price (VWAP).
Magnis Energy has the flexibility to call the monthly amounts and can cancel the agreement at any stage without a penalty.
An option for an additional $4 Million subscription is on offer at the same terms.
The funds will be used for working capital and advancing all projects.
In addition, an issue of 4,000,000 Unlisted Options in Magnis Energy at a exercise price of $0.40 per share with an expiry date of 30 April 2021 is offered subject to the necessary Shareholder approvals.
Negma Chairman Aboudi Gassam comments:
“At Negma we constantly look for undervalued opportunities in this sector and we believe that this is the best time to become part of Magnis shareholder family.
"Magnis has built a unique portfolio from mining to Li-ion Batteries plants.
"We look forward to working with the experienced team in Magnis and assisting with the funding of their projects.”
Magnis MD Marc Vogts says:
“We have been looking for the best option to avoid dilution at these current pricing levels while securing working capital for the next 18 months and we believe this option is ideal for us.
Negma has been excellent to deal with and we look forward to working closely together.”