Electrovaya announces the sale-leaseback of its headquarters in Mississauga for approximately CDN$22.5 million
Toronto, Ontario -July 27, 2018 – Electrovaya Inc. (“Electrovaya” or the “Company”) (TSX:EFL) (OTCQX:EFLVF) announces that it has entered into a binding agreement for the sale-leaseback of its headquarters at 2645 Royal Windsor Drive in Mississauga, Ontario (the “Property”) for approximately $22.5 million. Net proceeds to the Company are expected to be $21 million before transaction expenses, subject to customary closing adjustments, and will be used to pay down debt and for working capital purposes. Under the terms of the agreement, the transaction is expected to close at 5:00 pm (Toronto time) on September 18, 2018 (the “Completion Date”). The sale is on an “as is, where is” basis and also provides that as of the Completion Date, Electrovaya will lease back from the buyer certain premises located on the Property. The agreement also provides that the terms of the formal lease will be settled by August 31, 2018, and will provide for the following:The leased premises shall consist of approximately 50,000 square feet of warehouse space and 4,000 square feet of office space.
- The leased premises shall consist of approximately 50,000 square feet of warehouse space and 4,000 square feet of office space.
- Electrovaya shall be responsible for its proportionate share of all operating costs, utilities and realty taxes and such costs shall be payable by Electrovaya as additional rent.
- The term will be for three years from the Completion Date.
- Both Electrovaya and the buyer shall have the option of early termination by providing at least six months’ written notice to the other party.