NORWALK, Conn.--(BUSINESS WIRE)--Smart grid technology leader Tantalus Systems today announced it has entered into a definitive agreement to merge with RiseTech Capital Corp., a TSX Venture Exchange-listed capital pool company, and also that it closed on a concurrent financing to bolster the company’s balance sheet in order to support and accelerate several strategic growth initiatives as well as for general working capital purposes. Following the closing of the merger, Tantalus’ board and management team will remain in place and lead the combined company, which will continue to focus on delivering innovative smart grid solutions to electric, water and gas utilities. Upon receiving the necessary approvals for listing from the TSX Venture Exchange, Tantalus will gain increased access to the capital markets as a publicly traded company.
“When RiseTech Capital entered into a letter of intent with Tantalus on September 8, 2020, we sought to partner with the experienced leadership team at Tantalus to accelerate the growth of this purpose-driven, innovative technology company,” said Manny Padda, CEO of RiseTech Capital. “In entering into definitive agreements today and securing additional capital, we believe that Tantalus is well-positioned to leverage its industry proven solutions and become a market leader in helping utilities prepare for the transformation of distribution grids across North America and beyond. Our shareholders are extremely excited to have the opportunity to support them in their mission.”
In parallel, Tantalus also announced the closing of a financing in the amount of approximately CAD$8.8 million through a private placement of subscription receipts that will ultimately be exchanged for shares of the publicly-traded company. The financing, led by Canaccord Genuity and Cormark Securities, as Joint Book Runners, and PI Financial, included contributions from several institutional technology funds and retail investors. In announcing both events, Tantalus and RiseTech will submit a Filing Statement to the TSX-Venture Exchange to seek approval for the public listing of the combined entity.
“On behalf of our Board of Directors, shareholders, employees, utility users and partners, our management team is extremely excited to take this pivotal next step in the evolution of Tantalus. This milestone marks the continued success resulting from our unwavering purpose to deliver mission-critical solutions to public power and electric cooperative utilities,” said Peter Londa, President & CEO of Tantalus Systems. “As we seek to help communities prepare for the future where technological, environmental and behavioral developments impact the needs and expectations of consumers, we believe this transaction will position our company to remain a long-term partner to the utilities we serve. Tantalus plans to be at the epicenter of empowering our utilities to transform their distribution grids, engage with their customers and members, utilize granular data to enhance their operations, quickly respond to unexpected events and proactively support the communities they serve.”
Over the past three decades, Tantalus has consistently and creatively delivered mission-critical technology solutions that enhance the safety, security, reliability and efficiency of public power and electric cooperative utilities across North America and the Caribbean Basin. By leveraging technology, Tantalus empowers utilities to transform their distribution grids from systems designed to support one-way power flow into a connected network of devices capable of supporting multi-directional power flow from solar panels, distributed storage and electric vehicles. The solutions and tools delivered by Tantalus enable utilities to also engage proactively with their customers and members, to be more responsive and reliable, pinpoint where to make capital investments to improve the resiliency of their grids, and generate cost savings by streamlining system operations. Tantalus’ comprehensive suite of smart grid solutions includes advanced metering infrastructure, demand-management technologies, data analytics, distribution automation and street lighting control systems - a broad portfolio built purposefully to support smart community initiatives essential to both the near-term and long-term success of the utilities Tantalus supports and the communities they serve.
This news release includes information, statements, beliefs and opinions which are forward-looking, and which reflect current estimates, expectations and projections about future events, including, but not limited to, the completion of the merger with RiseTech Capital Corp. and gaining increased access to capital markets and other statements that contain words such as “believe,” “expect,” “project,” “should,” “seek,” “anticipate,” “will,” “intend,” “positioned,” “risk,” “plan,” “may,” “estimate” or, in each case, their negative and words of similar meaning. By its nature, forward-looking information involves a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking information. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Readers should not place undue reliance on forward-looking information, which is based on the information available as of the date of this news release and Tantalus disclaims any intention or obligation to update or revise any forward-looking information contained in this new release, whether as a result of new information, future events or otherwise, unless required by applicable law. The forward-looking information included in this new release is expressly qualified in its entirety by this cautionary statement.