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DevvStream Announces $6 Million Equity Investment from EEME Energy; Gives Notice to Terminate $300 Million Equity Line of Credit
DevvStream Announces $6 Million Equity Investment from EEME Energy; Gives Notice to Terminate $300 Million Equity Line of Credit
About this update from Devvstream Corp.
$1.5 million already funded; preferred stock structure adds no debt, has no maturity date, and carries no repayment obligation CALGARY, Alberta--(BUSINESS WIRE)-- DevvStream Corp. (NASDAQ: DEVS) (“DevvStream” or the “Company”) today announced that it has entered into a binding term sheet with EEME Energy SPV I, LLC (“EEME”) for a $6.0 million private placement of the Company’s Series A Non-Redeemable Convertible Preferred Stock. EEME has already funded $1.5 million of the investment. The Company also announced that it has given notice to terminate its equity line of credit purchase agreement, under which up to $300 million of common shares could have been issued and sold over time, simplifying the Company’s capital structure as it works toward completing its previously announced business combination with XCF Global, Inc. (NASDAQ: SAFX) (“XCF”) and Southern Energy Renewables, Inc. (“Southern”). A $6 Million Investment Built for the Merger The EEME investment is designed to do two specific jobs: fund capital requirements under the business combination agreement and add working capital, without adding debt. $6.0 million total investment, with $1.5 million already received and the balance to be funded at one or more subsequent closings. $5.0 million of net proceeds will fund DevvStream’s investment in Southern. $1.0 million will be used for DevvStream general working capital. Permanent equity structure: the preferred stock has no maturity date, no mandatory redemption, and no repurchase obligation. Limited anticipated conversion pressure: the Series A Preferred Stock is convertible into common stock at a conversion price based on the earlier of (a) the five-day volume-weighted average price (“VWAP”) of XCF common stock during the five trading days immediately following the closing of the business combination, or (b) the five-day VWAP of the Company’s common shares during the five trading days immediately following any termination of the business combination agreement, in each case subject to customary adjustments to be set forth in definitive documentation. Because no conversion price can be established until the applicable five-day VWAP measurement period has run, the Company anticipates limited conversion activity prior to the closing of the business combination. Dividends are non-cumulative and payable only if declared by the board, in cash or stock at the...