Electriq Energy going public after TLG acquisition

Vitality storage system integrator Electriq Energy is being acquired by TLG Acquisition One Corp., a publicly traded particular goal acquisition firm. Upon closing of the transaction, anticipated through the first half of 2023, the mixed firm will function underneath the title Electriq Energy Holdings Inc. and can be led by current Electriq administration with Mike Lawrie becoming a member of the board as Chairman.

The transaction values Electriq at a professional forma pre-money fairness worth of $495 million, and the mixed firm plans to publicly commerce on the NYSE underneath the image ELIQ. The deal is predicted to supply Electriq with as much as $125 million of capital to fund its progress via a mixture of debt and fairness.

“Electriq and TLGA collectively is a strategic mixture for each corporations, and in step with TLGA’s persevering with analysis and pursuit of goal corporations,” mentioned Mike Lawrie, Chief Govt Officer, TLGA. “Our proposed merger comes on the proper time to deal with the quickly rising demand within the residential photo voltaic vitality storage market, expertise growth and innovation, client and supplier demand, and authorities coverage and environmental initiatives. We imagine that collectively we are able to create thrilling new alternatives and worth for our individuals, prospects, companions, and traders.”

It’s true that the U.S. residential photo voltaic/vitality storage market is giant and thriving. Photo voltaic installs are forecast to develop at 17 % per yr, even earlier than the possibly vital influence in the marketplace of the rebates, tax credit and subsidies contained within the U.S. Federal Authorities’s not too long ago enacted Inflation Discount Act.

Electriq is targeted on that residential and small enterprise vitality storage and administration market. Together with rooftop photo voltaic, Electriq’s options are delivered through a go-to-market mannequin that makes photo voltaic + storage simply accessible and fewer beholden to 1 tech vendor. Electriq additionally has a broad vary of trade partnerships, together with a multi-billion-dollar international producer, high-growth suppliers of turnkey microgrids, and residential photo voltaic corporations.

“The Electriq workforce has achieved vital expertise and buyer milestones during the last two years, and we’re prepared for the subsequent step in our journey,” mentioned Frank Magnotti, Chief Govt Officer, Electriq. “The success of our modern residential vitality storage and administration platform, mixed with the quickly evolving vitality ecosystem, guarantees thrilling new progress and alternatives forward—for our firm, the evolving market, the atmosphere, and society. We’re pleased with our progress and the communities we serve, and we look ahead to our future with TLGA.”

Electriq is in superior discussions for as much as $60 million of capital that features an asset-backed revolving credit score facility from a number one institutional investor, a private convertible debt dedication of as much as $8.5 million from TLGA CEO Mike Lawrie and different convertible debt to be raised earlier than transaction shut.

Electriq intends to shut and partially fund the revolving credit score facility and the convertible debt from Lawrie earlier than yr finish 2022. As well as, a significant variety of shares can be positioned into escrow to supply incentives for fairness financing commitments. TLGA may additionally enter right into a ahead buy settlement previous to transaction near backstop redemptions for as much as $100 million.