ROSH HAAYIN, Israel - Brenmiller Energy Ltd. (NASDAQ:BNRG), a global provider of thermal energy storage solutions, has entered into a securities purchase agreement with an existing institutional investor, securing approximately $1.05 million in gross proceeds. The private placement involves the issuance of 1 million ordinary shares at $1.05 each, a 52% premium over the closing price on August 2, 2024.
The agreement also grants the investor an option to invest in an additional 1 million shares if the company's stock closes at or above $2.50 per share within the next 12 months. The closing of this transaction is contingent upon the company obtaining consent from an existing lender within 90 days.
Brenmiller Energy plans to allocate the net proceeds from this private placement towards general corporate purposes, including working capital. The shares offered in this private placement have not been registered under the U.S. Securities Act of 1933 and are subject to registration with the SEC or an exemption from such requirements. The company has agreed to file a registration statement for the resale of these shares within 30 days post-closing.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such jurisdiction.
Brenmiller Energy's bGen™ thermal energy storage system was recognized as one of TIME's Best Inventions in the Green Energy category in 2023. The system is designed to aid in the transition away from fossil fuel reliance by providing energy storage solutions that convert renewable electricity into zero-emission heat, offering a competitive alternative to natural gas.
This news article is based on a press release statement from Brenmiller Energy Ltd. and includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected.
The forward-looking statements include expectations regarding the private placement's closing and the intended use of proceeds. Factors that may influence the company's actual results are detailed in the Risk Factors section of the company's Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC.
In other recent news, Brenmiller Energy has reported significant advancements in its operations and strategic partnerships. The company has deployed and is developing a total of 73 MWh of its bGen™ thermal energy storage (TES) systems globally. Brenmiller Energy has also unveiled a Heat as a Service (HaaS) business model aimed at accelerating the adoption of zero-emission heat for industrial power users.
The company has also announced a robust project pipeline with a potential of 49 projects across 13 countries, estimated to be worth approximately $500 million in potential sales. Brenmiller Energy has reached a significant milestone by signing a $150 million exclusive distribution agreement with Rock Energy Storage, LLC. This deal is part of the company's broader strategy to implement a $500 million project pipeline aimed at accelerating the deployment of its energy storage solutions.
In financial news, Brenmiller Energy reported a decrease in net research and development expenses by 32% to $3,178,000 for the year ended December 31, 2023. The company has also raised approximately $8.5 million in gross proceeds through equity capital this year. These recent developments highlight Brenmiller Energy's commitment to its growth strategy and its focus on sustainable energy solutions.
InvestingPro Insights
Brenmiller Energy Ltd. (NASDAQ:BNRG) has recently made headlines with its private placement strategy aimed at bolstering its financial position. An analysis of the company's financial health and market performance using InvestingPro's real-time data reveals several key insights.
As of the last twelve months ending Q4 2023, Brenmiller Energy has a market capitalization of just $1.7 million, reflecting the size and scale of the company within the energy sector. This is particularly relevant given the company's recent securities purchase agreement, as it indicates the level of investor interest relative to the company's overall market value.
The company's price-to-earnings (P/E) ratio stands at -0.17, suggesting that investors are currently not expecting earnings growth, which aligns with the company's status as reflected in the InvestingPro Tips. Moreover, Brenmiller Energy's stock has experienced a significant decline over various time frames, with a one-year price total return of -91.5%, underscoring the challenges it faces in the market.
InvestingPro Tips highlight potential areas of concern for investors, such as the company's difficulty in making interest payments on debt and its rapid cash burn. These factors are particularly pertinent in light of the company's need for capital and the terms of the recent private placement. Additionally, with the company not paying dividends and suffering from weak gross profit margins, these insights can help investors understand the risks associated with investing in Brenmiller Energy.
For those interested in a deeper dive into Brenmiller Energy's financials and future prospects, InvestingPro offers additional tips that can provide a more comprehensive analysis. Currently, there are 20 additional InvestingPro Tips available for Brenmiller Energy, which can be accessed through the platform's dedicated page for the company at https://www.investing.com/pro/BNRG.
It's important to note that the company's innovative bGen™ thermal energy storage system has been recognized for its potential in the Green Energy space. However, investors must weigh this potential against the financial metrics and market performance when making investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.