Brenmiller Energy secures up to $25 million in staged financing

ROSH HA’AYIN, Israel - Thermal energy storage provider Brenmiller Energy Ltd. (NASDAQ:BNRG), currently trading near its 52-week low of $1.68, has secured an equity financing agreement with its largest shareholder, Alpha Capital Anstalt, potentially providing up to $25 million in staged funding, the company announced Thursday. According to InvestingPro data, the company has been quickly burning through cash, with negative free cash flow of $9.85 million in the last twelve months.

The first stage of $1.2 million has already been received, with a second tranche of $3.8 million subject to shareholder approval and other conditions. Alpha has additional investment rights for up to $20 million in follow-on financing, including a potential $15 million over a two-year period if certain conditions are met. With a current market capitalization of just $3.82 million and a current ratio of 2.25, InvestingPro analysis suggests the company’s liquid assets exceed its short-term obligations, though it remains unprofitable with a -$6.47 earnings per share.

Brenmiller, which develops thermal energy storage systems for industrial and utility customers, is currently deploying its bGen ZERO system at Tempo Beverages’ manufacturing plant in Israel, where it will replace fossil-fueled boilers. The system will support production of Pepsi, Heineken, and other global brands at the facility. InvestingPro subscribers can access 15+ additional insights about BNRG’s financial health and market performance, including detailed analysis of its growth potential and risk factors.

The company is also involved in several European projects, including a green methanol production initiative in Spain that received €25 million from the European Hydrogen Bank. Brenmiller estimates its portion of the supply contract at approximately €7 million.

Additionally, Brenmiller Europe S.L., the company’s Spain-based joint venture, is expected to supply distributed thermal energy storage systems with approximately 5 MWe total electrical charge capacity, representing about €4 million in equipment sales revenue.

The company has also signed a non-binding memorandum of understanding with ENASCO Ltd., a small modular reactor specialist, to develop a hybrid nuclear-thermal energy storage platform targeting data centers and hydrogen production.

CEO Avi Brenmiller stated the new financing would allow the company to focus more on executing its core strategy rather than fundraising efforts.

The information in this article is based on a company press release statement.

In other recent news, Brenmiller Energy has entered into a securities purchase agreement with Alpha Capital Anstalt for up to $25 million, with an initial closing providing $1.2 million through the issuance of pre-funded and ordinary warrants. The company has also signed a non-binding memorandum of understanding with ENASCO Ltd. to develop thermal energy storage solutions integrated with small modular reactors, aiming to launch three commercial-scale projects valued at $50 million by 2030. Additionally, Brenmiller has entered into another non-binding memorandum of understanding with a major Japanese corporation to explore deploying thermal energy storage solutions in Japan, focusing on replacing fossil fuel-based boilers in industrial settings.

In corporate governance news, Brenmiller Energy appointed Boaz Toshav as an Independent Director to its Board, bringing over 20 years of experience in investment banking and advisory services. The company also announced a reverse share split to maintain its Nasdaq listing, described as a strategic move to protect shareholder value. These developments indicate Brenmiller Energy’s ongoing efforts to expand its market presence and strengthen its financial position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.