PETAH TIKVA, Israel, Jan. 18, 2022 /PRNewswire/ -- GenCell Energy, (TASE: GNCL), a leading Israel-based developer of green energy solutions based on fuel cells employing hydrogen and ammonia to power is preparing to accelerate its activities. To this end, the Company announces today that it has completed a significant raising of capital to the amount of approximately NIS 112.5 million to support the expansion of its business activities. The fundraising was carried out through a private placement of shares which constitutes approximately 10.4% of the company's capital (fully diluted), by a number of leading institutional entities in the Israeli capital market. Participants in the placement include the Harel Group which has become a stakeholder in the company and Migdal Insurance which has made an additional investment alongside other institutional investors.
Comments Rami Reshef, CEO of Gencell, "We thank the institutional investors and organizations who have participated in this fundraising round and see this as an expression of confidence in the Company's activities and business vision. In our view, the increase of Migdal's holdings, Harel becoming a stakeholder and the entry of Meitav-Dash Investment House into a significant investment in the Company reflect the importance with which the capital market regards GenCell's breakthroughs in the field of clean energy, and we are happy about that. GenCell is currently experiencing tremendous momentum and this new round of capital will support the acceleration of our activities in many directions, first of all in the field of green ammonia development which we are pursuing together with TDK and other potential partners. This capital will also allow us to deepen and expand our strategic cooperation with Deutsche Telekom in the global telecommunications market as well as to advance our activities in the field of charging stations for electric vehicles. Upon reinforcing our technology, expanding our production lines, successfully completing pilot installations around the globe, and signing significant strategic cooperation agreements in 2021, we look at 2022 as a year in which the Company will achieve commercial maturity, a year during which we will begin to see the fruits of all these important steps."
The Harel Insurance Group has invested approximately NIS 60 million as a part of the offering, which has increased Harel's current holdings in the Company to approximately 6.9% of GenCell's shares and makes them a stakeholder in the company. Migdal Insurance, which has been a stakeholder from before this investment, participated in the offering to the amount of approximately NIS 30 million, and as a result its holding in the company will increase to approximately 8.9%. Meitav-Dash, in addition to other entities, participated in this round to the amount of approximately NIS 16.5 million, increasing their holding in the Company to 2.7%. The deal was led by the underwriting company Poalim IBI.
This capital will support the expansion of GenCell's operations through, among other means, execution of the strategic collaborations that the Company signed in the past year with Deutsche Telekom in the telecom sector, with ABB in the energy sector focusing on markets such as medical facilities and rail transportation, and with EV MOTORS in the field of EV charging. In addition, the funds will support the acceleration of the Company's R&D activities in cooperation with the Japanese conglomerate TDK towards development of green ammonia as a fuel for the future.
About GenCell Energy
GenCell Energy (TASE: GNCL) develops total green power solutions based on reliable, zero-emission alkaline fuel cells and green ammonia-to-energy technology which deliver uninterrupted power to help the world #SayNoToDiesel and transition to clean energy. The ability to produce not only clean power from GenCell's fuel cells, but also the green fuel on which the fuel cells run, sets GenCell in a far superior position as a well-to-wheel total green energy solution provider. GenCell delivers resilient, robust and weather-resistant backup power for utilities, telecom and other mission-critical applications which have been deployed in 22 countries. Our hydrogen-on-demand solution provides primary power for off-grid and poor-grid sites, as well as for rural electrification. GenCell Energy numbers more than 110 employees, including veterans of space and submarine projects. The Company is headquartered in Israel with a worldwide distribution and support network and retains unique intellectual property that includes patents, trade secrets and know-how.
SOURCE GenCell Energy