Dr. Raj DasGupta reports

ELECTROVAYA SECURES $20M CREDIT FACILITY FROM BANK OF MONTREAL TO ACCELERATE GROWTH AND REDUCE COSTS

Electrovaya Inc. has closed a credit agreement with the Bank of Montreal Corporate Finance (BMO) for a senior secured asset-based lending facility, which includes a three-year term and which includes the following features:

• Revolving asset-based facility of $20-million (U.S.);
• Accordion of $5-million (U.S.) to support further growth when required;
• Ancillary credit products for foreign currency hedging and credit cards.

This facility lowers Electrovaya's cost of capital with reduced interest rates and fees, strengthening its financial position for expansion. The new facility, with an initial three-year term, will support Electrovaya's growth plans over the next few years and includes lending capabilities for both Electrovaya's U.S. and Canadian operations. Importantly, the BMO facility enables financing from the U.S. Export-Import Bank (EXIM) for Jamestown manufacturing investments through an intercreditor agreement.

"Our new banking facility with BMO Corporate Finance provides Electrovaya with improved working capital access while reducing costs to support our U.S. and international growth plans," said Dr. Raj DasGupta, chief executive officer of Electrovaya. "Furthermore, the facility enables corresponding financing from EXIM to support our pursuit of vertically integrated lithium-ion battery manufacturing in the United States. We look forward to a strong partnership with the BMO Corporate Finance team as we continue our mission of driving broad adoption of our leading lithium-ion battery technology."

About Electrovaya Inc.

Electrovaya is a pioneering leader in the global energy transformation, focused on contributing to the prevention of climate change by supplying safe and long-lasting lithium-ion batteries without compromising energy and power. The company has extensive IP (intellectual property) and designs, develops and manufactures proprietary lithium-ion batteries, battery systems and battery-related products for energy storage, clean electric transportation and other specialized applications. Electrovaya has two operating sites in Canada and a 52-acre site with a 135,000-square-foot manufacturing facility in Jamestown, N.Y., for its planned gigafactory.

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