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Electrovaya secures new credit facility to fund Walmart battery purchase orders

It will help Electrovaya fund nearly C$13 million of open orders for its proprietary lithium-ion batteries, battery systems and energy storage units

lithium ion battery
The C$7 million credit will help Electrovaya fund orders for its proprietary lithium-ion batteries

Electrovaya Inc (TSE:EFL) (OTCMKTS:EFLVF) announced Thursday that the battery maker has secured a new credit facility to help finance a major order from retailer Walmart Inc. (NYSE:WMT).

The Toronto-based company said that it has signed a non-binding term sheet with an unnamed Canadian financial institution for a C$5.5 million credit facility from the same lender as a previously announced C$1.5 million facility for a total credit of C$7 million.

The credit will help Electrovaya fund nearly C$13 million of open orders for its proprietary lithium-ion batteries, battery systems and energy storage units.

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Earlier in September, the company announced that Walmart Canada had placed a nearly C$7 million order for its forklift battery systems.

The retailer previously converted all forklifts at an Ontario distribution centre to Electrovaya batteries in 2018.

“These purchase orders represent a strong endorsement of our lithium ion battery technology,” Electrovaya’s vice president business development Dr Raj Das Gupta said at the time.

“It is ideally suited to intensive-use applications such as forklifts, supporting both higher efficiency and sustainability.”

Closing of the credit facility remains subject to a definitive loan agreement being entered into and the satisfaction of customary closing conditions, including required security and other arrangements being put in place.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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TSX:EFL
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