Electrovaya Inc (OTCMKTS:EFLVF) Stock On Radar After Credit Facility Extension and Repayment of Promissory Note

At this point in time, there is considerable focus on companies involved in the manufacturing of lithium-ion batteries and one of the companies that you could look into this morning is Electrovaya Inc (OTCMKTS:EFLVF). The company not only manufactures those batteries but is also involved in the technology that goes into manufacturing those.

Trading Data

On Thursday, EFLVF stock lost 2.55% to $0.7552 with more than 62.74K shares, compared to its average volume of 57.39K shares. The stock moved within a range of $0.7408 – 0.7787 after opening trade at $0.7700.

Electrovaya Announces Credit Facility Extension and Repayment of Promissory Note

Yesterday the company announced that it had been successful in amending its loan agreement that it had in place with its lender. It may be a good idea for investors to take a look at the specifics of the amendment. One of the major amendments was the reduction of the interest rate calculation by as much as 1%.

In addition to that, the term of the loan had also been extended by 6 months and on top of that there is an option to extend it by another 6 months. The company would need to pay 0.5% of the valuation of the debt facility for the 6 month extension and that payment is going to be made in shares. It goes without saying that the amendment to the C$16 million credit facility was a major development for Electrovaya and it may bring the stock into significant focus today.

Key Quote

“We are happy to extend our partnership with our lender. They supported the business as it scaled in 2022 and will continue to do so into 2023.” said John Gibson, CFO at Electrovaya.