SolarBank Corporation (SUUN) Friday has entered into a definitive agreement with an institutional investor for a registered direct offering, involving the sale of 2,394,367 common shares and an equal number of warrants at a combined price of $3.55 per unit.
This transaction is expected to generate approximately $8.5 million before deducting fees and expenses. The warrants, exercisable at $4.45 per share, will remain valid for five years. If fully exercised, they could provide an additional $10.65 million, though there is no guarantee of exercise.
The net proceeds from the Offering are intended to support the company's independent power producer assets, including battery energy storage system (BESS) projects and a community solar initiative in New York. Additional funds will be allocated for working capital and other corporate purposes. The Offering is expected to close around March 24, 2025, subject to customary conditions.
This Offering is limited to the U.S. and is being conducted under SolarBank's short form base shelf prospectus filed on May 2, 2023, with Canadian regulatory authorities, alongside a corresponding registration statement filed with the U.S. SEC under the Multijurisdictional Disclosure System - MJDS. A prospectus supplement will be filed on a non-offering basis in Canada and with the SEC as part of the registration statement. These documents will be accessible on SEDAR and EDGAR.
SUUN is currently trading at $3.49 or 21.57% lower on the Nasdaq Global Market.
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