FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean,
next-generation battery cell production capacity, today reported
financial results for the third quarter of fiscal year 2021.
Highlights of the third quarter 2021 and subsequent
events:
- In advanced stages of negotiations with two leading global
companies to sign conditional offtake agreements representing more
than 50 GWh of estimated potential cumulative demand
- In negotiations with seven additional companies for offtake
agreements representing more than 100 GWh of estimated potential
cumulative demand with several other leads in the FREYR commercial
pipeline
- Concept selection for Gigafactories 1 and 2 at Mo i Rana
completed, resulting in an anticipated uplift in annual throughput
capacity compared to the previous estimate of 13 GWh
- On track for Customer Qualification Plant start-up in 2H 2022
with initial raw materials secured
- Maintain ambition for start of production from Gigafactories 1
and 2 in 2H 2023, with Final Investment Decision (“FID”) targeted
in 1H 2022
- Signed supply contract with Glencore for the supply of up to
1,500 metric tons of high grade, sustainably sourced cobalt metal
cut cathodes with cobalt produced at Glencore’s Nikkelverk facility
in Norway
- Announced the formation of 50/50 U.S. joint venture with Koch
Strategic Platforms (“KSP”) to advance the potential development of
an initial 50 GWh of clean, next-generation battery cells in the
U.S.
- In conjunction with the formation of the U.S. joint venture
with KSP, announced $70 million combined investment in convertible
promissory notes with 24M Technologies, Inc. (“24M”) and an
expanded licensing agreement between U.S. joint venture partners
and 24M Technologies
“Our team continued to advance several important strategic
initiatives during the third quarter,” said Tom Jensen, the CEO of
FREYR. “As we continue to build the foundations of our business, we
will remain acutely focused on achieving commercial successes,
funding our expansion efficiently, and establishing localized
supply chains of clean, next-generation battery cell production in
accordance with our core tenets of speed, scale and
sustainability.”
Business Update
- Negotiating terms and conditions of potential offtake
agreements with prospective customers across the energy storage
systems and commercial mobility sectors exceeding 150 GWh in
estimated potential cumulative demand
- Increasing and advancing technical discussions across all
market segments with prioritized customer leads representing 3,000
GWh of unmet estimated potential cumulative demand
- Collaborating with our partners at KSP and 24M to evaluate and
advance development opportunities in the U.S.
- Working with our partners at the City of Vaasa and Finish
Minerals Group to evaluate and advance development opportunities in
Finland
Results Overview, Financing and Liquidity
- FREYR Battery reported a Net Loss for the third quarter of
fiscal year 2021 of ($45.4) million or ($0.42) per share compared
to a Net Loss of ($2.5) million or ($0.07) per share in the third
quarter of fiscal year 2020
- As of September 30, 2021, FREYR Battery had cash, cash
equivalents and restricted cash of $623.5 million compared to a
pro-forma cash, cash equivalents and restricted cash balance at the
closing of the business combination between FREYR AS and Alussa
Energy of $652.8 million
Business Outlook
FREYR is focused on advancing the following strategic mandates
and milestones over the next 18 months:
- Grow conditional offtake commitments and pipeline of commercial
opportunities across all market segments to support further
capacity expansion
- Proceed to FID on combined Gigafactories 1 and 2 at Mo I Rana
in 1H 2022 and commence operations at FREYR’s Customer
Qualification Plant in 2H 2022
- Accelerate additional Gigafactory developments in Norway, the
U.S. and Finland to concept selection and eventual FIDs
- Formalize further agreements with supply chain partners to
advance operational and commercial progress and support
decarbonisation of supply chain
- Accelerate evaluation of debt capital solutions to fund FREYR’s
strategic expansion of Gigafactories 1 and 2
Presentation of Third Quarter 2021 Results
A presentation will be held today, November 15th, 2021, at 10:30
am (EST) to discuss financial results for the third quarter of
fiscal year 2021. 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.
United Kingdom: +44 3333000804 United States: +1 6319131422
Switzerland: +41 225809034 Spain: +34 935472900 Norway: +47
23500243 Luxembourg: +352 27300160 Hong Kong: +852 30600225
Germany: +49 6913803430 France: +33 170750711 Denmark: +45 35445577
Canada: +1 4162164189
The participant passcode for the call is: 59378592#
A webcast of the conference call will be broadcast
simultaneously at https://streams.eventcdn.net/freyer/2021q3 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/presentations/default.aspx
About FREYR Battery
FREYR plans to develop up to 43 GWh of battery cell production
capacity by 2025 with an ambition of up to 83 GWh in total capacity
by 2028 to position the company as one of Europe’s largest battery
cell suppliers. Five of the facilities are planned to be in the Mo
i Rana industrial complex in Northern Norway, leveraging Norway’s
highly skilled workforce and abundant, low-cost renewable energy
sources from hydro and wind in a crisp, clear, and energized
environment. FREYR aims to supply safe, high-energy density and
cost competitive clean battery cells to the rapidly growing global
markets for electric vehicles, energy storage, and marine
applications. FREYR is committed to supporting cluster-based
R&D initiatives and the development of an international
ecosystem of scientific, commercial, and financial stakeholders to
support the expansion of the battery value chain in our region. For
more information, 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 the funding of FREYR’s planned future expansion; FREYR’s
progress on decarbonizing its supply chain; the establishment of
localized supply chains of FREYR’s clean, next-generation battery
cell production; the development, timeline, capacity and other
usefulness of FREYR’s CQP and planned Gigafactories; the Final
Investment Decision regarding the Gigafactories; progress to
complete CQP equipment tenders and progress of tendering for the
subsequent Gigafactories; progress and development of customer
offtake agreements and estimated potential cumulative demand from
these agreements, supply chain partnerships and growing pipeline of
commercial opportunities; the development and growth of FREYR’s
target markets and prioritized customer leads; the scale and
arrangements for any FREYR production facilities in North America;
the progress and development of FREYR’s partnerships and plans in
Finland; the development and commercialization of 24M’s technology;
FREYR’s manufacturing capacity relative to other market
participants; and the development of customer and supplier
relationships 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 FREYR’s Registration
Statement on Form S-1 filed with the Securities and Exchange
Commission on August 9, 2021, as amended, 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 September 30,
As of December 31,
2021
2020
Assets Current assets Cash and cash
equivalents
$
622,582
$
14,749
Restricted cash
879
196
Prepaid assets
6,486
464
Other current assets
709
442
Total current assets
630,656
15,851
Property and equipment, net
5,606
80
Other long-term assets
11
-
Total assets
$
636,273
$
15,931
Liabilities and shareholders' equity Current
liabilities Accounts payable
$
3,147
$
888
Accrued liabilities
9,286
2,153
Accounts payable and accrued liabilities - related party
1,040
322
Redeemable preferred shares
-
7,574
Deferred income
1,387
-
Total current liabilities
14,860
10,937
Warrant liability
38,438
-
Other long-term liabilities
-
38
Total liabilities
53,298
10,975
Commitments and contingencies (Note 6)
Shareholders'
equity Additional paid-in capital
658,868
15,183
Accumulated other comprehensive income
334
658
Accumulated deficit
(76,227
)
(10,885
)
Total shareholders' equity
582,975
4,956
Total liabilities and shareholders' equity
$
636,273
$
15,931
See accompanying notes to condensed consolidated
financial statements
FREYR BATTERY CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In
Thousands, Except Share and per Share Amounts)
(Unaudited)
For the three months ended
September 30,
2021
2020
Operating expenses: General and administrative
$
30,027
$
1,666
Research and development
5,257
283
Depreciation
30
4
Total operating expenses
35,314
1,953
Loss from operations
(35,314
)
(1,953
)
Other income (expense): Redeemable preferred shares
fair value adjustment
-
-
Interest income
51
-
Warrant liability fair value adjustment
(11,173
)
(350
)
Convertible notes fair value adjustment
-
(165
)
Interest expense
(1
)
(11
)
Foreign currency transaction (loss) gain
1,015
4
Other income
3
6
Loss before income taxes
(45,419
)
(2,469
)
Income tax expense
-
-
Net loss
(45,419
)
(2,469
)
Other comprehensive income (loss):
Foreign currency translation adjustments
(558
)
(23
)
Total comprehensive loss
$
(45,977
)
$
(2,492
)
Basic and diluted
weighted-average ordinary shares outstanding
108,713,120
32,975,333
Basic and diluted net loss attributable to ordinary shareholders
(Note 14)
$
(0.42
)
$
(0.07
)
See accompanying notes to condensed
consolidated financial statements
FREYR BATTERY CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands)
(Unaudited)
For the nine months ended
September 30,
2021
2020
Cash flows from operating activities Net loss
$
(65,341
)
$
(4,384
)
Adjustments to reconcile net loss to cash used in operating
activities: Share-based compensation expense
14,367
447
Depreciation
54
10
Redeemable preferred shares fair value adjustment
(74
)
-
Foreign currency transaction loss on redeemable preferred shares
28
-
Warrant liability fair value adjustment
11,173
575
Convertible notes fair value adjustment
-
199
Other
(83
)
81
Changes in assets and liabilities: Prepaid assets
(6,065
)
(66
)
Other current assets
(236
)
129
Accounts payable and accrued liabilities
8,365
(385
)
Accounts payable and accrued liabilities - related party
738
11
Deferred income
1,431
-
Other long-term liabilities
-
7
Net cash used in operating activities
(35,643
)
(3,376
)
Cash flows from investing activities Purchases of property
and equipment
(4,099
)
(35
)
Purchases of other long-term assets
(12
)
-
Net cash used in investing activities
(4,111
)
(35
)
Cash flows from financing activities Proceeds from Business
Combination
70,836
-
Proceeds from PIPE Investment
600,000
-
Capital contributions - ordinary shares
-
12,349
Issuance cost
(26,334
)
(799
)
Proceeds from issuance of redeemable preferred shares
7,500
-
Payments for the Norway Demerger
(3,002
)
-
Proceeds from issuance of convertible debt
-
1,104
Proceeds from issuance of convertible debt - related party
-
427
Payments related to convertible debt
-
(125
)
Net cash provided by financing activities
649,000
12,956
Effect of changes in foreign exchange rates on cash, cash
equivalents, and restricted cash
(730
)
3
Net increase in cash, cash equivalents, and restricted cash
608,516
9,548
Cash, cash equivalents, and restricted cash at beginning of
period
14,945
257
Cash, cash equivalents, and restricted cash at end of period
$
623,461
$
9,805
Reconciliation to consolidated balance sheets Cash and cash
equivalents
$
622,582
$
9,740
Restricted cash
879
65
Cash, cash equivalents, and restricted cash
$
623,461
$
9,805
See accompanying notes to condensed consolidated financial
statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211115005454/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) 9920 54 570
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