November 15, 2022
Energy storage system integrator Electriq Power is being acquired by TLG Acquisition One Corp., a publicly traded particular function acquisition firm. Upon closing of the transaction, anticipated throughout the first half of 2023, the mixed firm will function underneath the identify Electriq Power Holdings Inc. and can be led by present Electriq administration with Mike Lawrie becoming a member of the board as Chairman.
The transaction values Electriq at a professional forma pre-money fairness worth of $495 million, and the mixed firm plans to publicly commerce on the NYSE underneath the image ELIQ. The deal is anticipated to supply Electriq with as much as $125 million of capital to fund its development via a mix of debt and fairness.
“Electriq and TLGA together is a strategic combination for both companies, and consistent with TLGA’s continuing evaluation and pursuit of target companies,” stated Mike Lawrie, Chief Executive Officer, TLGA. “Our proposed merger comes at the right time to address the rapidly growing demand in the residential solar energy storage market, technology development and innovation, consumer and provider demand, and government policy and environmental initiatives. We believe that together we can create exciting new opportunities and value for our people, customers, partners, and investors.”
It is true that the U.S. residential solar/energy storage market is giant and thriving. Solar installs are forecast to develop at 17 p.c per 12 months, even earlier than the possibly vital influence available on the market of the rebates, tax credit and subsidies contained within the U.S. Federal Government’s lately enacted Inflation Reduction Act.
Electriq is targeted on that residential and small enterprise energy storage and administration market. In mixture with rooftop solar, Electriq’s options are delivered by way of a go-to-market mannequin that makes solar + storage simply accessible and fewer beholden to 1 tech vendor. Electriq additionally has a broad vary of trade partnerships, together with a multi-billion-dollar international producer, high-growth suppliers of turnkey microgrids, and residential solar firms.
“The Electriq team has achieved significant technology and customer milestones over the last two years, and we’re ready for the next step in our journey,” stated Frank Magnotti, Chief Executive Officer, Electriq. “The success of our innovative residential energy storage and management platform, combined with the rapidly evolving energy ecosystem, promises exciting new growth and opportunities ahead—for our company, the evolving market, the environment, and society. We are proud of our progress and the communities we serve, and we look forward to our future with TLGA.”
Electriq is in superior discussions for as much as $60 million of capital that features an asset-backed revolving credit score facility from a number one institutional investor, a private convertible debt dedication of as much as $8.5 million from TLGA CEO Mike Lawrie and different convertible debt to be raised earlier than transaction shut.
Electriq intends to shut and partially fund the revolving credit score facility and the convertible debt from Lawrie earlier than 12 months finish 2022. In addition, a significant variety of shares can be positioned into escrow to supply incentives for fairness financing commitments. TLGA might also enter right into a ahead buy settlement previous to transaction near backstop redemptions for as much as $100 million.
Have you checked out our YouTube web page?
We have a ton video interviews and extra content material on our YouTube web page. Recently we debuted Power Forward! — a collaboration with BayWa r.e. to debate greater degree trade matters in addition to finest practices / traits for operating a solar enterprise at present.
Our longer operating aspect venture is The Pitch — by which we’ve got awkward discussions with solar producers and suppliers about their new expertise and concepts in order that you do not have to. We focus on every thing from residential rail-less deck attaching and home solar financing to large-scale energy storage worth stacking and utility-driven new home solar + storage microgrids.
Tags: Electriq power