Vitality storage system integrator Electriq Power is being acquired by TLG Acquisition One Corp., a publicly traded particular goal acquisition firm. Upon closing of the transaction, anticipated through the first half of 2023, the mixed firm will function below the title Electriq Energy Holdings Inc. and might 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 below the image ELIQ. The deal is anticipated to supply Electriq with as much as $125 million of capital to fund its development by a mix of debt and fairness.
“Electriq and TLGA collectively is a strategic mixture for each corporations, and per TLGA’s persevering with analysis and pursuit of goal corporations,” mentioned Mike Lawrie, Chief Govt Officer, TLGA. “Our proposed merger comes on the proper time to handle the quickly rising demand within the residential photo voltaic vitality storage market, know-how growth and innovation, client and supplier demand, and authorities coverage and environmental initiatives. We consider that collectively we are able to create thrilling new alternatives and worth for our individuals, clients, companions, and buyers.”
It’s true that the U.S. residential photo voltaic/vitality storage market is massive and thriving. Photo voltaic 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 Authorities’s not too long ago enacted Inflation Discount Act.
Electriq is targeted on that residential and small enterprise vitality storage and administration market. Together with rooftop photo voltaic, Electriq’s options are delivered by way of a go-to-market mannequin that makes photo voltaic + 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 world producer, high-growth suppliers of turnkey microgrids, and residential photo voltaic corporations.
“The Electriq staff has achieved vital know-how and buyer milestones during the last two years, and we’re prepared for the following step in our journey,” mentioned Frank Magnotti, Chief Govt Officer, Electriq. “The success of our revolutionary residential vitality storage and administration platform, mixed with the quickly evolving vitality ecosystem, guarantees thrilling new development and alternatives forward—for our firm, the evolving market, the setting, and society. We’re happy with our progress and the communities we serve, and we sit up for 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. As well as, a significant variety of shares might be positioned into escrow to supply incentives for fairness financing commitments. TLGA may enter right into a ahead buy settlement previous to transaction near backstop redemptions for as much as $100 million.