Tigo Energy announces $50m capital raise to support its growth initiatives

Zvi Alon, Chairman and Chief Executive Officer at Tigo Energy

Tigo Energy, Inc. (Tigo), a provider of intelligent solar and energy storage solutions, signed a definitive agreement with L1 Energy for the purchase of $50m of newly issued Convertible Notes (the Notes) to support the Company’s future growth opportunities through the deployment of its solar and energy storage solutions and repayment of existing debt.

What are the transaction specifics?

The transaction closed concurrently with signing. The Notes bear a fixed annual interest rate of 5.0% with a maturity date of 36 months. They may be converted at the option of the investor into shares of common stock or an equivalent equity instrument created by a Public Company Event, which includes a merger with a Special Purpose Acquisition Company.

The conversion price is based on a valuation of $550m, excluding the shares issuable in the respect of the Notes and any shares issued associated with a Public Company Event.

What does the capital raise mean for Tigo?

“We look forward to deploying this capital to further our mission of providing critical solar solutions that optimize safety, yield and costs,” said Zvi Alon, Chairman and CEO of Tigo.

“This investment, coupled with anticipated proceeds from our business combination with Roth CH Acquisition IV Co., puts us in a position of strength as we look towards entering the public markets and continuing our robust growth trajectory,” Zvi Alon further commented.

Last December, Tigo and Roth CH Acquisition IV Co. announced a business combination agreement that is expected to result in Tigo becoming a public company. Upon closing of the transaction, subject to approval by ROCG stockholders and other customary requirements, the company will be named “Tigo Energy, Inc.” and is expected to list on NASDAQ under the ticker symbol “TYGO”. The transaction is expected to close in the second quarter of 2023.