Beam Global, a provider of sustainable products and technologies for electric vehicle charging, energy storage, energy security and outdoor media, executed a $100 million line of credit with OCI Group, a London-based supply chain solutions specialist. The credit facility is non-dilutive and priced at SOFR plus 300 basis points. Beam Global intends to use the funds to provide working capital to support growth in product orders and deliveries.
“In Q4 of 2022, we announced contracted orders for more EV ARC systems than we have produced in the entire history of the product,” Desmond Wheatley, CEO of Beam Global, said. “We are growing very rapidly and we currently see no end to this trend. We have a history of being very disciplined with cash and equity, which is why we have worked so hard to access funding which is neither expensive nor dilutive. This credit line gives us an additional layer of financial flexibility which will allow us to aggressively grow without taking on long-term debt or diluting our shareholders. Having a top-quality European fund involved in our growth fits well with our strategy of international expansion.”
Beam Global reported revenues of $6.2 million in 2020, $9 million in 2021 and $14.1 million for the first nine months of 2022. The Company received more than $62 million of firm orders at the beginning of Q4/22. Beam Global currently has no debt and approximately 10 million shares outstanding.
“OCI seeks industry leading companies with seasoned management teams and relevant, sustainable products serving high quality customers,” Oliver Chapman, CEO of OCI Group, said. “Beam Global ticks all the boxes and we are particularly intrigued by their plans to expand into the European market, the largest automotive market in the world. Beam Global’s unique and patented technology, coupled with an impeccable customer base, gives us confidence in their strategy and execution. This vital combination means that we can offer the company a material credit facility at very competitive rates. We look forward to doing much more with the company as they continue to execute and grow.”
The facility is a five-year agreement and is effective and active immediately, as per transaction documents. There is no minimum use requirement and OCI and Beam Global agreed that the $100 million cap can be increased if needed.
