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DIMONA, ISRAEL - Brenmiller Energy Ltd. (NASDAQ:BNRG), a provider of thermal energy storage solutions with a current market capitalization of just $4.67 million, announced Monday it has entered into a securities purchase agreement with Alpha Capital Anstalt for up to $25 million across multiple tranches. According to InvestingPro data, the company has been quickly burning through cash, making this financing crucial for its operations.
The initial closing, expected Monday, will provide Brenmiller with $1.2 million through the issuance of pre-funded warrants and ordinary warrants to purchase 631,579 ordinary shares each. The pre-funded warrants have an exercise price of $0.00001 per share, while the ordinary warrants are exercisable at $2.09 per share, close to the current trading price of $2.10. The stock has shown significant volatility, with a beta of -1.17, indicating strong counter-market movements. InvestingPro analysis suggests the stock may be undervalued at current levels.
Subject to shareholder approval, Brenmiller will receive an additional $3.8 million through the issuance of preferred shares convertible at $2.288 per share, along with accompanying warrants exercisable at $2.40 per share.
The agreement also includes provisions for Alpha Capital to purchase up to an additional $20 million in securities through subsequent financing options. Alpha may provide further funding of up to $15 million over two years following the equity closing, potentially bringing the total financing to $50 million if all warrants are exercised.
Brenmiller plans to use the proceeds for general corporate purposes, working capital, and execution of commercial thermal energy storage projects across Europe, the U.S., and the Middle East. While the company maintains a healthy current ratio of 2.25, InvestingPro analysis reveals 12 additional key financial metrics and insights that could help investors better understand the company’s financial position (available with an InvestingPro subscription).
The securities are being offered under an exemption from registration requirements and have not been registered under the Securities Act of 1933. The company has agreed to file registration statements with the SEC for the resale of shares issuable upon exercise of the warrants and conversion of preferred shares.
According to the press release statement, Brenmiller’s bGen™ ZERO thermal battery system converts electricity into heat for industrial processes and was recognized among TIME’s Best Inventions of 2023 in the Green Energy category.
In other recent news, Brenmiller Energy Ltd. announced a non-binding memorandum of understanding with ENASCO Ltd. to develop thermal energy storage solutions integrated with small modular reactors. This collaboration targets artificial intelligence data centers, with plans to deploy three commercial-scale projects valued at $50 million by 2030. Additionally, Brenmiller Energy signed another non-binding memorandum with a major Japanese corporation to explore deploying thermal energy storage systems in Japan, aiming to replace fossil fuel-based boilers in industrial settings.
In corporate governance developments, Brenmiller Energy appointed Boaz Toshav as an Independent Director to its Board. Toshav brings over 20 years of experience in investment banking and mergers and acquisitions advisory services. In strategic financial actions, the company announced a 5-for-1 reverse share split to maintain its Nasdaq listing, describing it as a proactive decision to protect shareholder value.
These recent developments reflect Brenmiller Energy’s ongoing efforts to expand its technological reach and strengthen its corporate structure.
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