Flux Power Holdings, a developer of lithium-ion-based energy storage solutions, secured a $15 million credit facility from Gibraltar Business Capital (GBC), an asset-based lender for middle-market businesses to fund its working capital and to refinance its existing credit facility with Silicon Valley Bank (“SVB”). The interest rate on this new facility is tied to the Secured Overnight Financing Rate plus five and one half of one percent (5.50%) per annum.

The company’s Existing assets have been used to secure the facility, which matures on July 28, 2025, and includes no warrants. The agreement also allows the facility to be increased to $20 million, in $1.0 million or greater increments, at the company’s request subject to approval by GBC.

“This facility has been used to repay our existing credit facility with SVB and along with our existing cash, is intended to help meet our anticipated capital resources to fund planned operations to meet the demands of our aggressive growth trajectory for the foreseeable future. We also appreciate the assistance and support of Bank of America to put this facility in place and be our banking partner going forward,” said Chuck Scheiwe, Chief Financial Officer of Flux Power.

Recently, Flux Power saw its net loss narrowed to $1.4 million in the third quarter of the financial year 2022-23 compared to the loss of $3.7 million year-over-year.

According to Mercom’s 1H And Q2 2023, Funding and M&A Report for Storage & Smart Grid, Corporate funding in Energy Storage bounced back in Q2 2023 with $4.9 billion raised in 32 deals, a 126% increase quarter-over-quarter.

Earlier this year, Northvolt, a battery manufacturer, received a $400 million investment from the Investment Management Corporation of Ontario (IMCO), a Canadian pension fund manager, in collaboration with Global Infrastructure Groups. The investment was converted into notes and will support Northvolt’s expansion plans.