Aquion secures $15M loan facility to fund growth - Center for Technology Transfer and Enterprise Creation - Carnegie Mellon University

Tuesday, June 19, 2012

Aquion secures $15M loan facility to fund growth

Aquion Energy’s plans to grow and manufacture state-of-the-art batteries in western Pennsylvania received another boost this week to the tune of $15 million in a venture loan facility.

Horizon Technology Finance Corp. (Nasdaq: HRZN) and Silicon Valley Bank are committing up to $10 million and $5 million respectively, the institutions said in a written statement.

“We appreciate the confidence Horizon and SVB have demonstrated in Aquion,” said CEO Scott Pearson in a written statement. “This venture loan facility was the right financing solution for us to bolster our liquidity, providing the additional financial strength needed to further our innovative battery technology and continue to successfully execute our growth strategy.”

With this type of deal, Horizon and SVB give a loan to Aquion and then receive interest and warrants, which are similar to an option and allow the lenders to buy shares at the company’s current valuation at a future time.

The deal was competitive, said Jerry Michaud, president of Horizon. He noted Aquion is a high-profile company in its space and that Horizon had looked at three or four other companies but opted not to invest in them.

Horizon, based in Farmington, Conn., specializes in financing venture or private equity backed, development-stage companies. Silicon Valley Bank, based in Santa Clara, Calif., focuses on technology, life science, cleantech, venture capital, private equity and premium win businesses. This isn’t the first local company Horizon has worked with: Other local investments include South Side-based Precision Therapeutics.

“We do find the Pittsburgh area to be an interesting market,” Michaud said. “Unlike the obvious markets of Boston and Silicon Valley, which are very big markets for us, in Pittsburgh we find more unique technology. Not the average software or bioscience. It’s something where the Pittsburgh area brings the value to the technology.”


Article courtesy of Pittsburgh Business Times