Blackstone Resources has signed a convertible loan agreement for up to 20 million Swiss francs (approximately 18.5 million euros) to help finance, among other things, the planned mass production of 3D-printed solid-state batteries.
Convertible loans are loans with the option of converting them into an equity investment in the company at a later date. A capital raising tool used primarily for start-up or bridge financing. Blackstone Resources has chosen a cap of 20 million Swiss francs and a term of three years for its convertible loans. The Swiss resources company intends to use the proceeds to bring its cells, which are primarily designed for the automotive industry into series production and to make further investments. Blackstone has already begun operating factory facilities in the Saxon town of Döbeln.
According to the manufacturer, the site in Döbeln allows for a production capacity of 0.5 GWh per year. The Swiss company announced in a press release in Autumn last year that it had thus created the building technology basis for implementing the 3D printing technologies it has developed to date in series production. The has only said so far that pre-series production is to start in the summer of 2021.
The company is more forthcoming about the convertible loans: according to Blackstone, a conversion into company shares is possible from 120 days after disbursement of the loan. At the time of conversion, the additional shares needed would be provided by increasing the company’s conditional share capital. The company says that convertible loans worth more than 2 million Swiss francs have already been provided by two investors.
Blackstone first entered the conversation in January 2019 as a player for the establishment of a battery cell production in this country. At the time, the Swiss company spoke of wanting to produce 100 million battery cells per year in a first phase, enough for 25,000 to 100,000 electric car batteries. In a further phase, the company says production will be “greatly increased.” In March 2019, the group then announced that it had applied to the German Federal Ministry of Economics and Technology’s funding call for consortia to set up battery cell production with a detailed business plan. The company has also recently announced that it is participating in a research alliance for the electrification of EU shipping. Blackstone Resources’ core business is battery metals and refinery development. In July 2018, the company, which was founded in 1995 and is based in Baar in the canton of Zug, went public on the Swiss stock exchange.