FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean,
next-generation battery cell production capacity, today reported
financial results for the first quarter of 2022.
Highlights of the first quarter 2022 and subsequent
events:
- Signed conditional offtake agreement (“COA”) with Powin LLC to
supply 28.5 GWh of cumulative volumes from 2024 – 2030 for Energy
Storage Systems (“ESS”) applications. The cells will initially be
delivered from FREYR’s combined Gigafactory 1 & 2 in Mo i Rana,
Norway, with prospective future collaboration in the U.S.
- Secured a COA with a leading global storage systems integrator
to supply 15 GWh of cumulative volumes from 2023 - 2027 for ESS
applications.
- Signed a COA with a major U.S. renewables company to supply
approximately 10 GWh of cumulative volumes for ESS
applications.
- In advanced negotiations with two additional companies,
including a major commercial mobility company, for COAs which are
projected to represent approximately 100 GWh of estimated potential
cumulative demand from 2024 – 2030.
- FREYR commenced pre-construction work at the planned
Gigafactory site in Mo i Rana, Norway during the first quarter to
perform ground-work preparation and detailed engineering.
- In April 2022, FREYR appointed Oscar Brown as the company’s
Group Chief Financial Officer. Brown is responsible for financial
planning, performance, reporting, and capital markets engagement
across the organization. He will also be leading the next phase of
FREYR’s capital formation to fund its growth ambitions.
- FREYR announced the appointment of Andreas Bentzen as the
company’s new EVP of Technology in April 2022. Bentzen comes from
the position of Co-Founder and Chief Technology Officer at Otovo, a
leading European provider of solar panels and batteries for the
residential market.
“Our team continued to advance our key strategic priorities
during the first quarter as we progress toward giga-scale
commercialization of clean, next-generation batteries,” said Tom
Einar Jensen, FREYR’s CEO. “With three new conditional customer
offtake agreements signed in recent weeks and more in advanced
stages of negotiations, visibility is building to accelerate
development beyond our initial combined Gigafactory 1 & 2.
Moreover, our commercial momentum is unearthing new opportunities
to partner with world class organizations to finance our growth
ambitions, expand into adjacencies on the battery value chain, and
deliver value to our shareholders.”
Business Update
- The initial five COAs FREYR has secured collectively represent
approximately 100 GWh of cumulative offtake volumes from global
leaders in the ESS market from 2024 – 2030. This level of
visibility equates to approximately 90% of projected nameplate
capacity for FREYR’s planned combined Gigafactory 1 & 2.
- FREYR’s cumulative offtake volumes are expected to support
potentially accelerated development of additional capacity in
Norway, the U.S., and the EU.
- Construction of FREYR’s Customer Qualification Plant (“CQP”) in
Mo i Rana is progressing towards anticipated factory acceptance
testing in H2 2022.
- With early ground-work preparation and detailed engineering at
the Gigafactory site in Mo i Rana underway, FREYR’s Board of
Directors has approved additional expenditures to continue
pre-construction activity. Additionally, the company’s technical
and operations teams are preparing a detailed project plan for
FREYR’s Board of Directors ahead of a potential FID.
- FREYR is in the advanced stages of working with Honeywell and
the global ESS customer to convert the company’s inaugural two COAs
to bankable, definitive sales agreements.
- FREYR is exploring capital formation solutions to finance
giga-scale development with several global financial institutions
and government entities in Norway, the U.S., and the EU.
Governmental financial support could include some combination of
grants, bridge loans, and direct lending.
Results Overview, Financing and Liquidity
- FREYR Battery reported a Net Loss for the first quarter 2022 of
($34.9) million or ($0.30) per share compared to a Net Loss of
($28.0) million or ($0.24) per share in the fourth quarter of
fiscal year 2021.
- As of March 31, 2022, FREYR Battery had cash, cash equivalents,
and restricted cash of $524.6 million.
Business Outlook
FREYR is focused on advancing the following strategic mandates
and milestones over the next 18 months:
- Secure multiple tranches of capital required to fund FREYR’s
giga scale expansion. FREYR has launched parallel processes with
key stakeholders to explore the most capital efficient options to
support development of the company’s business plan.
- Finalize additional conditional offtake agreements across the
ESS, commercial mobility, and passenger EV market segments to
support further capacity expansions.
- Convert initial two conditional offtake awards to final sales
agreements with Honeywell and a global ESS customer.
- Initiate FREYR’s augmented value proposition strategy with the
intention to maximize sustainable value creation and enhance the
company’s competitive position. Key objectives in accordance with
this strategy are to continue to evaluate opportunities to
diversify FREYR’s position across the global battery value chain;
and to explore potential partnerships that would enable FREYR to
broaden its participation across the battery technology
spectrum.
- Achieve Phase 1 FID on combined Gigafactories 1 & 2 at Mo i
Rana upon achievement of commercial, operational, and financing
milestones.
- Proceed to FID on the proposed JV/technology collaboration with
Aleees (TWSE: 5227) to construct a lithium iron phosphate (“LFP”)
cathode plant in the Nordic region. The company intends to achieve
FID in parallel with FID at combined Gigafactories 1 & 2 at Mo
i Rana.
- Continue to execute FREYR’s long-term strategy to establish
localized, decarbonized supply chains across the Nordic region and
U.S.
Presentation of First Quarter 2022 Results
A presentation will be held today, May 11th, 2022, at 7:30 am
Eastern Daylight Time (1:30 pm Central European Time) to discuss
financial results for the first quarter 2022. The results and
presentation material will be available for download at
https://ir.freyrbattery.com.
To access the conference call, listeners should contact the
conference call operator at the appropriate number listed below
approximately 10 minutes prior to the start of the call.
Participant conference call dial-in numbers:
United Kingdom: +44.20.8610.3526 United States: +1.646.307.1951
Switzerland: +41.43.210.51.60 Spain: +34.910.489.955 Norway:
+47.57.98.94.27 Luxembourg: +352.27.86.77.64 Hong Kong:
+852.5808.0608 Germany: +49.69.97533134 France: +33.1.73.02.31.30
Denmark: +45.70.71.71.73 Canada: +1.647.360.0158
The participant passcode for the call is: 1754204
A webcast of the conference call will be broadcast
simultaneously at https://streams.eventcdn.net/freyer/2022q1 on a
listen-only basis. Please log in at least 10 minutes in advance to
register and download any necessary software.
A replay of the webcast will be available at
https://ir.freyrbattery.com/events-and-presentations/Events-Calendar/default.aspx
About FREYR Battery
FREYR Battery aims to provide industrial scale clean battery
solutions to reduce global emissions. Listed on the New York Stock
Exchange, FREYR’s mission is to produce green battery cells to
accelerate the decarbonization of energy and transportation systems
globally. FREYR has commenced building the first of its planned
factories in Mo i Rana, Norway and announced potential development
of industrial scale battery cell production in Vaasa, Finland, and
the United States. FREYR intends to deliver up to 43 GWh of battery
cell capacity by 2025 and up to 83 GWh annual capacity by 2028. To
learn more about FREYR, please visit www.freyrbattery.com
Cautionary Statement Concerning Forward-Looking
Statements
The information in this press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements, other than statements of present or historical fact
included in this press release, including, without limitation,
regarding FREYR's anticipated path to commercialization; the
development, timeline, capacity and other usefulness of FREYR’s CQP
and planned Gigafactories; the realization of FREYR’s capital
spending plan; the progress and development of customer
relationships and offtake agreements and supply chain partnerships;
FREYR’s ability to partner with world class organizations to
finance its growth ambitions, expand into adjacencies on the
battery value chain, and deliver value to its shareholders; the
success of any capital raising paths, including securing financial
support from governments, to fund FREYR’s planned expansion; the
realization of FREYR's supply chain strategy and augmented value
proposition; FREYR’s finalization of any joint ventures and the
status of any potential partnerships that would enable FREYR to
broaden its participation across the battery technology spectrum;
FREYR's growing pipeline of commercial opportunities; FREYR’s
ability to convert any conditional agreements into definitive
agreements; the development and growth of FREYR's target markets;
the scale and arrangements for any FREYR production facilities;
FREYR's ability to achieve its ambition to localize and decarbonize
its supply chain across the region and the U.S.; the expected
delivery times of any cell casting and unit assembly equipment; and
FREYR's ability to grow its customer portfolio and secure capital
to fund expansion are forward-looking statements.
These forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. Most of these factors are
outside FREYR’s control and are difficult to predict. Additional
information about factors that could materially affect FREYR is set
forth under the “Risk Factors” section in (i) FREYR’s Registration
Statement on Form S-1 filed with the Securities and Exchange
Commission on August 9, 2021, as amended, and (ii) FREYR’s annual
report on Form 10-K filed with the Securities and Exchange
Commission on March 9, 2022, and available on the SEC’s website at
www.sec.gov.
Except as otherwise required by applicable law, FREYR disclaims
any duty to update any forward-looking statements, all of which are
expressly qualified by the statements in this section, to reflect
events or circumstances after the date of this press release.
Should underlying assumptions prove incorrect, actual results and
projections could different materially from those expressed in any
forward-looking statements.
FREYR BATTERY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands) (Unaudited)
As of March 31, As of December
31,
2022
2021
Assets
Current assets Cash and
cash equivalents
$
523,208
$
563,956
Restricted cash
1,366
1,671
Prepaid assets
16,191
15,882
Other current assets
11,327
1,282
Total current assets
552,092
582,791
Property and equipment, net
35,265
21,062
Convertible note
20,452
20,231
Equity method investments
2,771
2,938
Operating lease asset
9,447
-
Other long-term assets
11
11
Total assets
$
620,038
$
627,033
Liabilities and shareholders' equity
Current liabilities
Accounts payable
$
4,245
$
3,813
Accrued liabilities
26,378
15,065
Accounts payable and accrued liabilities - related party
552
3,316
Deferred income
1,392
1,380
Share-based compensation liability
2,552
2,211
Other current liabilities
2
12
Total current liabilities
35,121
25,797
Warrant liability
57,812
49,124
Operating lease liability
7,860
-
Long-term share-based compensation liability
7,484
6,627
Total liabilities
108,277
81,548
Commitments and contingencies
Shareholders' equity
Ordinary share capital, no par value, 245,000,000 ordinary
shares authorized and 116,853,504 ordinary shares issued and
outstanding as of March 31, 2022 and December 31, 2021
116,854
116,854
Additional paid-in capital
534,268
533,418
Accumulated other comprehensive (loss) income
(191
)
(524
)
Accumulated deficit
(139,170
)
(104,263
)
Total shareholders' equity
511,761
545,485
Total liabilities and shareholders' equity
$
620,038
$
627,033
FREYR
BATTERY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (In Thousands, Except Share and per Share
Amounts) (Unaudited)
For the three months ended
March 31,
2022
2021
Operating expenses:
General and administrative
$
24,614
$
9,012
Research and development
2,859
2,907
Equity in losses from investee
167
-
Total operating expenses
27,640
11,919
Loss from operations
(27,640
)
(11,919
)
Other income (expense): Warrant
liability fair value adjustment
(8,688
)
-
Redeemable preferred shares fair value adjustment
-
6
Convertible note fair value adjustment
221
-
Interest income
35
6
Interest expense
(20
)
-
Foreign currency transaction (loss) gain
(331
)
20
Other income, net
1,516
-
Total other income (expense)
(7,267
)
32
Loss before income taxes
(34,907
)
(11,887
)
Income tax expense
-
-
Net loss
(34,907
)
(11,887
)
Other comprehensive income (loss):
Foreign currency translation adjustments
333
57
Total comprehensive loss
$
(34,574
)
$
(11,830
)
Basic and
diluted weighted-average ordinary shares outstanding
116,853,504
37,452,359
Basic and diluted net loss attributable to ordinary
shareholders
$
(0.30
)
$
(0.32
)
FREYR BATTERY CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (In
Thousands) (Unaudited)
For the three months ended
March 31,
2022
2021
Cash flows from operating activities
Net loss
$
(34,907
)
$
(11,887
)
Adjustments to reconcile net loss to cash used in operating
activities: Share-based compensation
expense
2,047
4,161
Depreciation
92
10
Redeemable preferred shares fair value adjustment
-
(6
)
Reduction in the carrying amount of lease assets
285
-
Warrant liability fair value adjustment
8,688
-
Convertible note fair value adjustment
(221
)
Equity in losses from investee
167
-
Other
-
(33
)
Changes in assets and liabilities:
Prepaid assets
(181
)
(1,545
)
Other current assets
(4,667
)
247
Accounts payable and accrued liabilities
(1,435
)
1,128
Accounts payable and accrued liabilities - related party
217
159
Other current liabilities
(10
)
-
Deferred income
-
1,374
Operating lease liability
(210
)
-
Net cash used in operating activities
(30,135
)
(6,392
)
Cash flows from investing activities
Purchases of property and equipment
(7,932
)
(42
)
Investments in equity method investee
(3,000
)
-
Purchases of other long-term assets
-
(12
)
Net cash used in investing activities
(10,932
)
(54
)
Cash flows from financing activities
Proceeds from issuance of redeemable
preferred shares
-
7,500
Net cash provided by financing activities
-
7,500
Effect of changes in foreign exchange rates on cash, cash
equivalents, and restricted cash
14
49
Net increase in cash, cash equivalents, and restricted
cash
(41,053
)
1,103
Cash, cash equivalents, and restricted cash at beginning
of period
565,627
14,945
Cash, cash equivalents, and restricted cash at end of
period
$
524,574
$
16,048
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220511005575/en/
Investor contact: Jeffrey Spittel Vice President,
Investor Relations jeffrey.spittel@freyrbattery.com Tel: (+1)
281-222-0161 Media contact: Katrin Berntsen Vice President,
Communication and Public Affairs
katrin.berntsen@freyrbattery.com Tel: (+47) 920 54 570
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