FREYR Battery secures credit agreement extension

Published 15/02/2025, 00:28
FREYR Battery secures credit agreement extension

FREYR Battery, Inc., a manufacturer of electronic components and accessories currently valued at $322.77 million, has successfully amended its existing credit agreement, providing the company with additional time to meet certain conditions without triggering a default. According to InvestingPro data, FREYR maintains a strong liquidity position with a current ratio of 6.36, though analysis suggests the stock is slightly overvalued at its current price of $2.06. This development was formalized through a second amendment to the credit agreement involving its subsidiary, Trina Solar US Manufacturing Module 1, LLC ("TUM 1"), lenders, and HSBC Bank USA, N.A., as the administrative and collateral agent.

The amendment, effective as of Thursday, extends the deadline for TUM 1 to satisfy or waive the conditions precedent outlined in the Amended Credit Agreement from February 13, 2025, to February 28, 2025. The extension ensures that the failure to meet these conditions by the original deadline does not constitute an event of default under the terms of the agreement. This flexibility is particularly important as InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, with total debt at just $20.12 million.

The specifics of the Second Amendment, which modifies the original credit agreement dated July 16, 2024, and the subsequent first amendment dated December 23, 2024, have been filed with the SEC and are incorporated into this report by reference.

FREYR Battery, trading on the New York Stock Exchange under the ticker (NYSE:FREY), and its warrants under (NYSE:FREY) WS, is headquartered in Austin, Texas. The company's latest move to secure an extension on its credit agreement terms indicates a proactive approach to managing its financial obligations and maintaining operational flexibility.

This report is based on a press release statement and the details filed with the Securities and Exchange Commission.

In other recent news, Freyr Battery, in its Q2 2024 earnings call, emphasized a strategic focus on cash management and technological innovation. The company used a total of $31 million in cash in Q2 2024, with a year-to-date total of $54 million. Despite having no debt, the company's cash position and lack of immediate revenue stress the importance of its cost control measures. Freyr Battery is implementing cost controls to extend its cash runway to 36 months. The company aims to generate its first revenue and achieve EBITDA by 2025. A significant technological milestone was the successful production using the 24ms Semi-Solid platform. The company's commitment to extending its cash runway and advancing its battery technology platforms remain strong amid challenging market conditions. These are recent developments that investors should note.

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

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