Aquarius has raised approximately $10.3 million from a group of investors, including strategic investors, company management, employees, and existing shareholders, at a 66% premium above market price

Rhea-AI Summary

Aquarius Engines (TASE: AQUA) has successfully raised $10.285 million through a capital raise from private investors, company management, and employees. The investment comes at a 66% premium above market price. The largest investments include $8 million from Elial Schleider and $2 million from Alexander Chernyilovsky, with additional investments from company executives and other stakeholders.

The deal structure includes share allocations and warrant issuances, with exercise prices ranging from $0.97 to $1.1 per share and 18-month validity periods. The company plans to register its shares for NASDAQ trading within 12 months. Aquarius develops innovative systems for generating clean electricity for ultra-fast EV charging, with several significant paid pilots underway in the U.S.

Positive

• Successful capital raise of $10.285 million at 66% premium above market price
• Secured major strategic investors with $8M and $2M commitments
• Multiple paid pilot projects with leading U.S. entities
• Planned NASDAQ listing within 12 months
• Management and employee participation in funding shows internal confidence

Negative

• Future share dilution from warrant exercises if executed
• Second tranche of $5M investment from Schleider subject to conditions

• The list of investors includes Elial Schleider, Alexander Chernyilovsky, Leon Recanati, company CEO and founder Gal Friedman, Chairman of the Board Yona Fogel, Canadian investors, as well as the company's marketing and development managers
• Within 12 months of signing, the company will act to register its shares for trading on the NASDAQ stock exchange.
• As a reminder, Aquarius' innovative systems generate and supply clean electricity, enabling ultra-fast charging of electric vehicles in the growing EV market. The systems are smaller and more efficient than existing market solutions and are independent of the power grid.

TEL AVIV, Israel, Jan. 21, 2025 /PRNewswire/ -- Aquarius Engines (TASE: AQUA) (1170240) is pleased to announce the successful completion of a $10.285 million capital raise from a group of private investors, company management, and additional employees.

According to Gal Friedman, CEO of Aquarius, "I am delighted by the confidence shown by the company's management, board of directors, employees, and especially by a group of significant investors who believe in Aquarius' vision for the electric vehicle world. We have closed several significant pilots in the U.S. with leading entities in their fields, and we are very optimistic about the feedback we are receiving on our revolutionary system. All our pilot projects are paid, and the companies we collaborate with are significant and leading in their fields, planning joint evaluation and implementation of our system."

Investment Details:

1. Agreement with Mr. Elial Schleider:
   • Total investment of $8 million, with $3 million in exchange for 4,344,000 ordinary shares of the company.
   • In addition, Mr. Schleider will be allocated, free of charge, 2,172,000 Series A warrants, exercisable for up to 2,172,000 ordinary shares at an exercise price of $0.97 (3.5 ILS) per share, valid for 18 months from allocation.
   • Within 90 days of fulfilling the conditions precedent, Mr. Schleider will invest an additional $5 million in exchange for 5,171,429 ordinary shares.
   • If this additional investment is made, Mr. Schleider will be allocated, free of charge, 2,585,715 Series B warrants, exercisable for up to 2,585,715 ordinary shares at an exercise price of $1.1 (4 ILS) per share, valid for 18 months.
2. Agreement with Mr. Alexander Chernyilovsky:
   • Investment of $2 million in exchange for 2,896,000 ordinary shares of the company.
   • Additionally, Mr. Chernyilovsky will receive, free of charge, 1,448,000 warrants, exercisable for up to 1,448,000 ordinary shares at an exercise price of $0.97 (3.5 ILS) per share, valid for 18 months.
3. Investment Agreements with Three Key Stakeholders:
   • Insight Capital, Gal Friedman, and Yona Fogel will invest $100,000, $13,800, and $13,800 respectively, in exchange for 144,800, 20,000, and 20,000 ordinary shares at $0.69 (2.5 ILS) per share.
   • Each will also receive, free of charge, 72,400, 10,000, and 10,000 warrants respectively, exercisable for ordinary shares at $0.97 (3.5 ILS) per share, valid for 18 months.
4. Agreements with Four Additional Investors:
   • Combined investment of $37,000 in exchange for 54,000 ordinary shares at $0.69 (2.5 ILS) per share.
   • These investors will also receive, free of charge, 27,000 warrants, exercisable for up to 27,000 ordinary shares at $0.97 (3.5 ILS) per share, valid for 18 months.

About Aquarius Engines

Aquarius Engines is an energy company specializing in developing and producing groundbreaking small generators for electricity production.

The company holds approximately 44 registered patents in the U.S. and other countries and around 43 additional patents currently in the registration process. Aquarius has been publicly traded on the Tel Aviv Stock Exchange since December 2020.

Aquarius's shareholders include major global players such as Tier-1 Japanese automotive companies, TPR (a leading piston manufacturer), MUSASHI (partially owned by Honda), and prominent institutional investors in Israel.

The Aquarius engine is a small, lightweight generator with only one moving part, offering exceptional power and efficiency. It stands as a highly competitive player with significant advantages in its field.

The company's initial target market is the telecommunications sector, where it collaborates with industry leaders such as Nokia to provide green backup power solutions for telecom towers. The core technology of Aquarius enables the use of a variety of fuels, including hydrogen, ethanol (E85), methanol, and LPG.

Aquarius plans to expand into additional markets, supplying its engines for truck power units, aviation, maritime, and defense propulsion solutions, as well as range extenders for the automotive industry.

Aquarius operates development and activity centers in Israel, Germany, and Poland.

Contact: odedm@aquariusengines.com

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SOURCE Aquarius Engines

FAQ

How much capital did Aquarius Engines (AQUEF) raise in January 2025?

Aquarius Engines raised $10.285 million from private investors, company management, and employees.

What is the premium of Aquarius Engines' (AQUEF) 2025 capital raise compared to market price?

The capital raise was completed at a 66% premium above the market price.

When does Aquarius Engines (AQUEF) plan to list on NASDAQ?

The company plans to register its shares for trading on NASDAQ within 12 months of the investment agreement signing.

What are the main investment terms for Elial Schleider in Aquarius Engines (AQUEF)?

Elial Schleider committed to invest $8 million total, with $3 million initially for 4,344,000 shares plus warrants, and an additional $5 million within 90 days for 5,171,429 shares plus warrants.

What is the warrant exercise price for Aquarius Engines' (AQUEF) Series A warrants?

The Series A warrants have an exercise price of $0.97 per share and are valid for 18 months from allocation.