Singapore’s Vickers Venture Partners-backed Eavor has received $11.4 million in gross proceeds from the exercise of share purchase warrants issued in 2018 and 2019, the Canada-based geothermal energy player said Tuesday.
“This accelerated warrant funding enables Eavor to unconditionally commit to our 2020 technology development plans,” John Redfern, president and CEO of the company, said in a statement.
“We thank our investors and partners for the strong support they have shown by exercising their warrants well before their expiry date, and while all of us are coping with the impact COVID-19 and uncertain financial markets,” he added.
Eavor is a geothermal energy company using cleaner technology than traditional methods and with the ability to be deployed in more locations. The Eavor-Lite demonstration project has been operating in Canada since last year; it uses two vertical wells, joined by two legs at a depth of 2.4 kilometers, connected by a surface pipeline.
The company announced last week it would form a project development company with Enex Power Germany to build heat and power projects in Bavaria, Germany, where Enex already has a geothermal license.
For the warrant fundraising, each unit issued by Eavor in 2018-19 included one common share and a half of a share purchase warrant, with a full share purchase warrant entitling the holder to buy one common share by end-2020 or end-February 2021, depending on the unit terms, Eavor said in a statement.
Over 2018-19, 930,000 share purchase warrants were issued, and the holders were offered the opportunity to exercise the warrants early, Eavor said, adding that in exchange for exercising by end-April, they were offered a new share purchase warrant for each one exercised.
The new warrant gives the holder the right to buy one common share at $25 each until the end of 2021, the statement said. Around 83 percent of all the outstanding warrants were exercised early, it said.
Eavor raised C$15 million (currently around $10.7 million) in its Series A round in September 2019 led by Vickers Venture Partners, and received grants from Natural Resources Canada and Sustainable Development Technology Canada, according to data from Crunchbase.