FREYR Battery's Acquisition Boosts Stock on Tuesday
Generated by AI AgentWesley Park
Tuesday, Dec 24, 2024 12:52 pm ET1min read
FREY--
FREYR Battery, Inc. (NYSE: FREY) shares surged on Tuesday, up 13.30% to $3.90, following the closure of its acquisition of Trina Solar's 5 GW solar module manufacturing facility in Wilmer, Texas. This strategic move enhances FREYR's solar and battery capabilities, positioning it for growth in the renewable energy sector. The transaction includes $100 million in cash, a $50 million loan repayment, a $150 million loan note, and 9.9% of FREYR's stock, with a potential additional 11.5% stake through an $80 million convertible note. FREYR also assumed $235 million in facility debt.
The acquisition is on track, with Line 1 completed and Line 2 commissioning underway, aiming for full production by the second half of 2025. FREYR plans to begin U.S. solar cell facility construction in the second quarter of 2025, with regulatory filings starting in the first quarter of 2025. Approximately 30% of the production volume is already secured through firm offtake agreements with U.S. customers. FREYR also secured $50 million from Encompass Capital Advisors, with an additional $50 million contingent on the solar cell facility's construction.
FREYR's financial guidance for 2025, with EBITDA projections of $75 million-$125 million and a year-end run rate of $175 million-$225 million, indicates a promising outlook. The company's expectation of fully integrated operations by 2025, targeting an annual EBITDA of $650 million-$700 million, further boosts investor confidence. This positive outlook, coupled with the successful acquisition of Trina Solar's U.S. manufacturing assets, has likely contributed to the stock's 13.30% increase on Tuesday.
FREYR Battery's strategic plans for its solar and battery capabilities play a significant role in its stock price increase. The acquisition aligns with FREYR's ambition to expand its renewable energy footprint and drive growth, contributing to the stock's surge on Tuesday. As the company continues to execute its growth strategy, investors can expect further developments in FREYR's solar and battery capabilities, positioning it for long-term success in the renewable energy sector.
FREYR Battery, Inc. (NYSE: FREY) shares surged on Tuesday, up 13.30% to $3.90, following the closure of its acquisition of Trina Solar's 5 GW solar module manufacturing facility in Wilmer, Texas. This strategic move enhances FREYR's solar and battery capabilities, positioning it for growth in the renewable energy sector. The transaction includes $100 million in cash, a $50 million loan repayment, a $150 million loan note, and 9.9% of FREYR's stock, with a potential additional 11.5% stake through an $80 million convertible note. FREYR also assumed $235 million in facility debt.
The acquisition is on track, with Line 1 completed and Line 2 commissioning underway, aiming for full production by the second half of 2025. FREYR plans to begin U.S. solar cell facility construction in the second quarter of 2025, with regulatory filings starting in the first quarter of 2025. Approximately 30% of the production volume is already secured through firm offtake agreements with U.S. customers. FREYR also secured $50 million from Encompass Capital Advisors, with an additional $50 million contingent on the solar cell facility's construction.
FREYR's financial guidance for 2025, with EBITDA projections of $75 million-$125 million and a year-end run rate of $175 million-$225 million, indicates a promising outlook. The company's expectation of fully integrated operations by 2025, targeting an annual EBITDA of $650 million-$700 million, further boosts investor confidence. This positive outlook, coupled with the successful acquisition of Trina Solar's U.S. manufacturing assets, has likely contributed to the stock's 13.30% increase on Tuesday.
FREYR Battery's strategic plans for its solar and battery capabilities play a significant role in its stock price increase. The acquisition aligns with FREYR's ambition to expand its renewable energy footprint and drive growth, contributing to the stock's surge on Tuesday. As the company continues to execute its growth strategy, investors can expect further developments in FREYR's solar and battery capabilities, positioning it for long-term success in the renewable energy sector.
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