Clean energy company Eos Energy Enterprises made a few significant announcements this past week, including a $13.75 million investment as well as the transition of its chief financial officer position.
On Jan. 19, the Edison company – a leading provider of sustainable zinc-powered long-duration energy storage systems – announced the sizable investment in convertible senior notes to support its strategic growth initiatives. The investors include Clear Creek Investments LLC, Ardsley Advisory Partners LP and AltEnergy LLC.
In 2022 alone, the company unveiled a new Eos Ingenuity Lab at its Edison headquarters as well as the expansion of its manufacturing facility near Pittsburgh.
“We’re excited to have long-term investors in our company continue to support our growth and the plan to expand our manufacturing capacity,” Eos CEO Joe Mastrangelo said in a statement. “AltEnergy has been an investor in the company for nearly a decade and adding additional support from Clear Creek Investments and Ardsley Advisory Partners helps us position the company for the future.”
As part of the move, and in addition to other terms, the investors will purchase $13.75 million in aggregate principal amount of Eos’ 26.5% convertible senior payment-in-kind notes due 2026, which will have an initial conversion price of approximately $1.67 per share of Eos’ common stock, subject to customary adjustments.
Cowen acted as financial advisor and Haynes and Boone LLP served as Eos’ legal advisor in the transaction.
Additionally, Eos announced Jan. 23 that Randall “Randy” Gonzales will step down as CFO into a corporate advisory role because of family health reasons, effective immediately. He is succeeded by Nathan Kroeker.
In the announcement, Mastrangelo called Gonzales – who was named to the CFO position in December 2021 – a “key architect” in Eos’ recent financial achievements, “including the $100 million senior secured term loan that closed in the third quarter of 2022, the up to $100 million at-the-market (ATM) equity program, and most recently the $13.75 million convertible note.”
Mastrangelo added that, although he and Gonzales have been working together to find a workable solution for two months, this was the best decision for the company “and more importantly, Randy and his family.”
Kroeker brings 25 years of finance and energy industry experience to Eos, including 10 years with Spark Energy, beginning as CFO before eventually being named CEO in 2014. While at Spark, he led its first IPO process, which Eos said was a first for the independent retail energy industry on the Nasdaq Stock Market.
Kroeker, who said he “can’t wait to roll-up my sleeves and get started,” previously held financial leadership positions at companies such at Macquarie Energy, Direct Energy, Ernst & Young, Arthur Andersen and Coopers & Lybrand.
He also was a chartered accountant in Canada and is a licensed Certified Public Accountant in Texas. He earned an undergraduate degree in accounting from the University of Manitoba.
“We are excited to have Nathan joining our team. He brings extensive finance and operational experience to our team. We shouldn’t miss a step in executing our strategic growth plan,” Mastrangelo added.