Crown Electrokinetics, a provider of technology solutions, suspended the use of its equity line of credit (ELOC) agreement with Liqueous.
“Recently, Crown had an initial, modest use of the ELOC, but has now made the decision to suspend its use. We established the ELOC to complement our existing capital options and provide flexibility to cover any funding gaps. However, at this time, we no longer deem it necessary to support our current financing strategy and strengthened outlook,” Doug Croxall, CEO and chairman of Crown, said. “At Crown, we are dedicated to protecting shareholder value and have consulted with professionals before taking the necessary, albeit limited, steps to address the impact of suspected naked short activity. The timely decision to suspend our use of the ELOC reflects our commitment to our shareholders. Our business outlook is strong. Crown continues to drive revenue from its Fiber Optics and Water Solutions businesses from contracts including the construction of U.S. fiber optics networks, the construction of slant wells in Los Cabos, Mexico and Element 82’s water service line inspection for lead pipes. In addition, our most recent contract includes PE Pipelines’ services for replacing lead-based water service lines.”
Use of the ELOC is at the company’s sole discretion, and the company has the flexibility to reinstate it as conditions warrant. The company intends to update the market if, and when, the company determines to start utilizing the ELOC once again.
