Eco Wave Power Announces Closing of $3.0 Million Registered Direct Offering to Accelerate Commercial-Scale Wave Energy Deployment

Rhea-AI Summary

Eco Wave Power (Nasdaq: WAVE) has closed a registered direct offering of 300,000 American Depositary Shares (ADSs) at $10.00 per ADS, raising $3.0 million in gross proceeds. Each ADS represents eight common shares. Maxim Group served as the sole placement agent.

The company plans to use the net proceeds to advance its projects, particularly its first commercial-scale wave energy installation in Portugal. The offering was made under an effective shelf registration statement declared effective by the SEC on December 6, 2023.

Eco Wave Power operates the first grid-connected wave energy system in Israel and is preparing installations at the Port of Los Angeles, Taiwan, and Portugal, with a total project pipeline of 404.7 MW.

Positive

• Secured $3.0 million in new funding
• Project pipeline totaling 404.7 MW
• First commercial-scale installation advancing in Portugal
• Operating grid-connected system in Israel with EDF Renewables partnership

Negative

• Share dilution through new ADS offering
• Dependence on external funding for project development

Insights

Financial Analyst

This $3.0 million registered direct offering represents a significant capital raise for Eco Wave Power, though it comes with notable dilution at $10.00 per ADS. The funding is strategically important as it enables the company to advance its first commercial-scale installation in Portugal, marking a important transition from pilot projects to revenue-generating operations. With a current market cap of about $90 million, this raise represents approximately 3.3% of the company's value. The involvement of Maxim Group as placement agent and the structured nature of the offering through an F-3 shelf registration indicates professional execution, though the relatively small size suggests cautious institutional interest. The company's 404.7 MW project pipeline shows ambitious scaling plans, but successful execution of the Portugal project will be important for validating the commercial viability of their wave energy technology.

Clean Energy Technology Expert

The strategic focus on onshore wave energy technology positions Eco Wave Power uniquely in the renewable energy sector. The progression to commercial-scale deployment in Portugal represents a critical milestone in validating their technology's scalability. Their grid-connected system in Israel, co-funded by EDF Renewables, provides important operational validation. The expansion plans across multiple geographies - Los Angeles, Taiwan and Portugal - demonstrate growing market acceptance of their wave energy solution. The technology's recognition as "Pioneering Technology" by the Israeli Energy Ministry and support from established institutions like the EU Regional Development Fund adds credibility to their approach. However, the relatively modest funding round suggests careful, staged commercialization rather than aggressive scaling.

TEL AVIV, Israel, Dec. 12, 2024 /PRNewswire/ -- Eco Wave Power Global AB (publ) (Nasdaq: WAVE) ("Eco Wave Power" or the "Company"), a leading innovator in onshore wave energy technology, today announced that it has closed its previously announced offering of 300,000 American Depositary Shares ("ADSs")(or ADS equivalents), each representing eight common shares of the Company, at a public offering price of $10.00 per ADS (or ADS equivalent) for gross proceeds of $3.0 million (the "Offering"), before deducting placement agent fees and offering expenses.

Maxim Group LLC acted as the sole placement agent for the Offering.

Eco Wave Power currently intends to use the net proceeds from the Offering to advance its groundbreaking projects, including the execution of its first commercial-scale wave energy installation in Portugal.

The Offering was made pursuant to an effective shelf registration statement on Form F-3, as amended, (File No. 333-275728) previously filed with and subsequently declared effective by the U.S. Securities and Exchange Commission ("SEC") on December 6, 2023. A prospectus supplement relating to the ADSs issued in the Offering was filed by the Company with the SEC on December 12, 2024. Copies of the prospectus supplement relating to the Offering, together with the accompanying prospectus, can be obtained at the SEC's website at www.sec.gov or by contacting Maxim Group LLC, at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@maximgrp.com or by telephone at (212) 895-3745.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Eco Wave Power Global AB (publ)

Eco Wave Power is a leading onshore wave energy company revolutionizing clean energy with its patented, smart, and cost-efficient technology that converts ocean and sea waves into sustainable electricity.

Dedicated to combating climate change, Eco Wave Power operates the first grid-connected wave energy system in Israel, co-funded by EDF Renewables IL and the Israeli Energy Ministry, which recognized the technology as a "Pioneering Technology."

Expanding globally, Eco Wave Power is preparing to install projects at the Port of Los Angeles, Taiwan, and Portugal, adding to its impressive project pipeline totalling 404.7 MW.

The Company has received support from prestigious institutions such as the European Union Regional Development Fund, Innovate UK, and the Horizon 2020 program, and was honoured with the United Nations' Global Climate Action Award.

Eco Wave Power's American Depositary Shares (WAVE) are traded on the Nasdaq Capital Market. Learn more at www.ecowavepower.com.

Information on, or accessible through, the websites mentioned above does not form part of this press release.

For more information, please contact the Company's CFO at:

Aharon@ecowavepower.com
+97235094017

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and other Federal securities laws. For example, the Company is using forward-looking statements in this press release when it discusses the use of proceeds from the Offering. These forward-looking statements and their implications are neither historical facts nor assurances of future performance and are based on the current expectations of the management of Eco Wave Power and are subject to a number of factors, uncertainties and changes in circumstances that are difficult to predict and may be outside of Eco Wave Power's control that could cause actual results to differ materially from those described in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Except as otherwise required by law, Eco Wave Power undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting Eco Wave Power is contained under the heading "Risk Factors" in Eco Wave Power's Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the SEC on March 28, 2024, which is available on the on the SEC's website, www.sec.gov, and other documents filed or furnished to the SEC. Any forward-looking statement made in this press release speaks only as of the date hereof. References and links to websites have been provided as a convenience and the information contained on such websites is not incorporated by reference into this press release.

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FAQ

How much did Eco Wave Power (WAVE) raise in its December 2024 offering?

Eco Wave Power raised $3.0 million in gross proceeds through a registered direct offering of 300,000 ADSs at $10.00 per ADS.

What is the total project pipeline capacity for Eco Wave Power (WAVE)?

Eco Wave Power's total project pipeline amounts to 404.7 MW, including planned installations in Portugal, the Port of Los Angeles, and Taiwan.

How will Eco Wave Power (WAVE) use the proceeds from its December 2024 offering?

The company intends to use the net proceeds to advance its projects, particularly focusing on its first commercial-scale wave energy installation in Portugal.

What is the conversion rate for Eco Wave Power's (WAVE) ADSs to common shares?

Each American Depositary Share (ADS) represents eight common shares of Eco Wave Power.

Where is Eco Wave Power (WAVE) currently operating its first grid-connected system?

Eco Wave Power operates its first grid-connected wave energy system in Israel, co-funded by EDF Renewables IL and the Israeli Energy Ministry.