Eos Energy Enterprises, Inc. (NASDAQ: EOSE) has achieved significant milestones related to its strategic investment with Cerberus Capital Management LP. The achievement of these milestones has enabled the company to draw an additional $30 million on the delayed draw term loan from Cerberus, strengthening its balance sheet as it expands manufacturing operations in Turtle Creek, PA.
The milestones achieved include objectives related to the company’s automated production line, materials cost-out, improvements in Z3 technology performance, and backlog/cash conversion. Notably, Eos has successfully achieved production cycle times of less than 10 seconds while exceeding first pass yield targets in the high 90s on its first state-of-the-art battery manufacturing line, positioning the company for future profitability.
The remaining two tranches of $65 million and $40.5 million, respectively, may be drawn following testing dates in October 31, 2024, and January 31, 2025, upon the achievement of applicable performance milestones.
Eos Energy Enterprises will hold a virtual special meeting of stockholders on September 10, 2024, where stockholders will be asked to consider and vote on proposals related to Cerberus’s strategic investment. The board of directors recommends that stockholders vote for the issuance cap proposal and for the adjournment proposal.
Eos Energy Enterprises, Inc. is a leading provider of safe, scalable, efficient, and sustainable zinc-based long duration energy storage systems. The company’s breakthrough Znyth™ aqueous zinc battery, designed to overcome the limitations of conventional lithium-ion technology, provides utility, industrial, and commercial customers with a proven, reliable energy storage alternative for 3 to 12-hour applications. Eos was founded in 2008 and is headquartered in Edison, New Jersey. Following these announcements, the company's shares moved -7.0%, and are now trading at a price of $2.58. If you want to know more, read the company's complete 8-K report here.
