ECOtality, Inc., the Arizona-based provider of electric vehicle (EV) recharging infrastructure, has entered into agreements with institutional investors for a capital investment of approximately $15.5 million in equity financing.
ECOtality charging stationIn addition to the capital increase, the debenture holders of ECOtality will convert all $9.1 million of existing debentures and related warrants into equity.
ECOtality CEO Jonathan Read says the financing will provide working capital to support the initial requirements of the company’s recent $99.8 million grant from the U.S. Department of Energy (DOE), under which it will launch “the largest deployment of electric vehicles and charging infrastructure in history.”
Known as The EV Project, it will see the deployment 10,950 Level 2 (220V) charging systems, 260 Level 3 fast-chargers and 4,700 Nissan LEAF zero-emission electric vehicles in five states. It will involve ECOtality, Nissan and over 40 other industry partners.
Concurrent with the transaction, ECOtality will provide the required notice to the Financial Industry Regulatory Authority (FINRA) to enact a 1:60 reverse stock split approved by shareholders at the August 26, 2009 Annual Shareholder Meeting.