Nostromo Secures a $9.1 Million Equity Investment by Migdal and Freepoint Commodities

The two investors are highly committed to renewables and energy storage. The investment will support Nostromo's growth in the US.

Nostromo Secures a $9.1 Million Equity Investment by Migdal and Freepoint Commodities

Nostromo Energy Ltd. (TASE: NOST), provider of sustainable energy storage solutions to commercial and industrial buildings, based on its proprietary IceBrick™ technology, announced a $9.1M equity financing by Migdal Group, one of the largest financial groups in Israel, investing approximately $7M, and another $2M by Freepoint Commodities, a Stamford, CT based commodities and energy trading company and developer of renewable energy projects.
The investment was in the form of a private issuance of ordinary shares at a price per share of $10.8, including non-tradable 30-months’ warrants to invest an additional $6.4M ($5.0M by Migdal and $1.4M by Freepoint) at a price per share of $15.1, representing a 40% premium on the transaction price. Completion of the investment depends on the approval by the Tel-Aviv Stock Exchange for listing the issued shares for trade.

The proceeds of this investment will be used by Nostromo to expand its business operations in the US market, as well as expand its R&D, software, engineering, project management, production, Q&A, regulatory and US sales and marketing organization.

“This investment further strengthens our financial position and, more importantly, creates partnership with two important shareholders with significant value. Migdal is a leading institutional investor, with a clear commitment to clean energy, energy storage, and sustainability in general,” says Yoram Ashrey, CEO of Nostromo. “Freepoint brings a broad and deep understanding of energy markets, which will be highly valuable to us as we grow in the US market.”

“As renewable sources of power provide more of our electricity needs in the future, there will be an increasing demand for storage systems to balance the power grid. Nostromo’s innovative IceBrick is a solution unique in its safety and reliability, and will no doubt be a compelling mechanism to create behind-the-meter power storage in the future. We are highly impressed by the Nostromo team’s achievements to date and look forward to working with them in the future to expand commercial adoption of the IceBrick technology.” Said David Messer, CEO of Freepoint Commodities.