Romeo Power, Inc. an energy technology leader delivering advanced electrification solutions for complex commercial vehicle applications, announced that it has entered into a $350 million common stock standby equity line purchase agreement with an affiliate of financing partner Yorkville Advisors. This equity purchase agreement comes after the Company announced last month that it had filed a Form S-3 to register new shares pursuant to Rule 415 under the Securities Act of 1933. The purchase agreement gives Romeo Power the right, but not the obligation, to sell up to $350 million of common equity to an affiliate of Yorkville Advisors at the time of Romeo Power’s choosing during the term of the agreement.
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Purchase Agreement Highlights:
Under the executed purchase agreement, Romeo Power has the option, but not the obligation, to issue and sell up to $350 million in common equity at the time of Romeo Power’s choosing during the term of the agreement, subject to certain limitations
New shares will be issued to the investor at a discounted price of 96.25% of the 3-day volume-weighted average price (“VWAP”) following notification by the Company to the investor to draw upon the facility
The ELOC facility will continue for a term of two years
Susan Brennan, Chief Executive Officer of Romeo Power, commented: “Over the last several months we have significantly advanced our strategic vision for Romeo Power, including the further enhancement of our industry-leading technology and intellectual property, a refreshed leadership team, and the start of our upcoming transition into our new state-of-the-art headquarters and manufacturing facility in Cypress, CA. This is a meaningful step forward for our company, our shareholders, and our broader stakeholders. We have now secured the financial optionality we need to support customers, advance our commercial development and reinforce our leading competitive position as we translate these strong attributes into commercialization, growth, and enhanced shareholder value.”
Kerry Shiba, Chief Financial Officer of Romeo Power, added, “We are pleased to have secured this financing, as it provides us valuable optionality and access to capital to continue to pursue our growth strategy. The ELOC facility structure provides flexibility to balance continuing business investment to drive long-term value and possible shareholder dilution in the short-term. We have the ability to draw from the facility at the time of our choosing during the term of the agreement. While we are not obligated to issue shares or to utilize the full amount under the current facility, the agreement with Yorkville provides Romeo Power a committed source of capital to fund our growth.”
The information contained in this press release does not constitute an offer to sell or the solicitation of an offer to buy shares of Romeo Power common stock, nor shall there be any offer, solicitation, or sale of the shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.