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.
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.
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