Funding and M&A Roundup: SmartSolar Raises $1.8 Million in Seed Funding ORIT secures $125 million five-year term loan facility SmartSolar, a rooftop solar solution provider, has raised $1.85 million in seed funding. The funding was led by Picus Capital and 2degrees, along with participation from early-stage venture capital firm Iterative. With this funding, the company plans to accelerate its growth in Vietnam and expand its footprint across Southeast Asia. The company offers rooftop solar solutions designed to help businesses cut down on electricity costs. Octopus Renewables Infrastructure Trust, an investment company, announced that it has signed a £100 million (~$125 million) five-year term loan facility with three of its existing lenders, Santander, National Australia Bank, and Allied Irish Banks. The funding will be used to pay down a portion of the existing and more expensive Revolving Credit Facility (RCF) debt. According to ORIT, it has drawn £151.2 million (~$191 million) on the RCF so far. Vidyut, an electric vehicle ecosystem platform, has raised $2.5 million in funding from global investor Flourish Ventures. The company will utilize the acquired funds to expand its Battery-as-a-Service offering in passenger and commercial EV segments. By unbundling batteries from EVs and offering them on a pay-per-km subscription basis, Vidyut claimed it had reduced upfront electric three-wheeler costs by 35-40%. For reports and trackers on funding and M&A transactions in solar, energy storage, and smart grid sectors, click here. Read last week's funding roundup. Tags: Vidyut, Octopus Renewables Infrastructure Trust, SmartSolar, solar, funding

M4E Lithium, a lithium exploration company, secured $7.5 million to $10 million in funding from Lithium Royalty Corp. (LRC) and the Electrification and Decarbonization (E&D) fund managed by Waratah Capital Advisors. The financing package includes an equity investment, a royalty purchase, and an option for a strategic offtake agreement (with a buyback option)

The funding is expected to propel exploration efforts across M4E’s extensive 91k hectares of mining rights in the Lithium Valley and Borborema regions of Brazil.

The financing package comprises several components:

Equity Investment: M4E secures a $6 million equity investment from the Waratah E&D Fund, valuing the company at $31 million post-money.

Royalty Agreement: LRC is to provide a $1.5 million payment in exchange for a 1.5% royalty on future production. An additional $2 million payment becomes due upon the confirmation of a minimum tonnage of lithium resources by M4E.

Offtake Agreement: The Waratah E&D Fund gains an option to an offtake agreement, exercisable for $500,000, granting the right to purchase 10% of M4E’s future lithium production at market prices. This agreement also includes an option for M4E to repurchase its offtake position.

Carlos Zanini and George Hauschild from MBZ Advogados spearheaded the legal advisory for M4E. The team also benefited from the guidance of Filipe Cunha (Bichara Advogados) and Shawn Doyle (McCarthy Tétrault). Stikeman Elliott LLP and Mattos Filho Advogados provided counsel for LRC and Waratah.

“This partnership with LRC and the Waratah E&D Fund is a game-changer for M4E,” said Sergio Castanho, CEO of M4E. “We have the assets, the team, and now the capital to aggressively explore and develop our lithium resources. LRC and Waratah’s investment and expertise will be instrumental in accelerating our progress and creating significant value for all stakeholders.”

According to Mercom’s Annual and Q4 2023 Funding and M&A Report for Storage & Smart Grid, corporate funding in the Energy Storage sector, including VC/PE funding, decreased 28% YoY, with $19 billion raised in 120 deals compared to $26.4 billion raised in 124 deals in 2022.

Staff

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