ROSH HAAYIN, Israel - Brenmiller Energy Ltd. (NASDAQ:BNRG), a provider of thermal energy storage solutions, will appoint Zvi Joseph and Miki Korner to its Board of Directors effective August 14, 2024.
The move comes after an agreement with investor Alpha Capital Anstalt following a Schedule 13D filing. The new appointees will fill vacancies from upcoming resignations of two current directors.
Joseph brings legal expertise and board experience from Amdocs (NASDAQ:DOX), Inc., and AYRO, Inc., while Korner offers a background in energy and environmental consulting, with current involvement at Flowlit Ltd. Both appointees are recognized for their diverse professional experiences and contributions to corporate governance.
Avi Brenmiller, CEO of Brenmiller Energy, expressed confidence that the new board members will enhance the company's prospects. Nicola Feuerstein, a director at Alpha, echoed this sentiment and disclosed Alpha's plans to increase its equity investment in Brenmiller by one million shares, contingent on regulatory approvals.
In a separate development, Brenmiller announced a private placement with Alpha for approximately $1.05 million at $1.05 per share, a 52% premium over the August 2, 2024 closing price. Alpha has an option for an additional investment of one million shares if Brenmiller's stock reaches or exceeds $2.50 within the next year.
Nir Brenmiller, COO, stated that due to Alpha's investment, the company will not utilize its at-the-market facility to sell shares below $2.00. This strategy is intended to stabilize the company's financial position and reflects Alpha's trust in Brenmiller's potential.
Brenmiller Energy's bGen system has been recognized for its ability to convert electricity into heat for industrial processes at competitive prices with natural gas.
The system, which was named one of TIME's Best Inventions in 2023, charges using low-cost electricity and discharges steam or hot water on demand, supporting the development of utility-scale renewables.
This news is based on a press release statement from Brenmiller Energy Ltd. and contains forward-looking statements regarding future director appointments, shareholder benefits, and financial strategies. These statements are subject to various risks and uncertainties, including market conditions and regional stability.
In other recent news, Brenmiller Energy Ltd. has made significant strides in its operations and strategic partnerships. The company has deployed and is developing a total of 73 MWh of its bGen™ thermal energy storage (TES) systems globally.
In addition, Brenmiller Energy has introduced a Heat as a Service (HaaS) business model, aimed at promoting the adoption of zero-emission heat for industrial power users.
Furthermore, the company has a robust project pipeline with the potential for 49 projects across 13 countries, estimated to be worth approximately $500 million in potential sales. Among these projects is a collaboration with Tempo Beverages Ltd. in Israel, where Brenmiller's bGen™ system is now in the construction phase.
In terms of financials, Brenmiller Energy has raised approximately $8.5 million in gross proceeds through equity capital this year. The company has also reported a decrease in net research and development expenses by 32% to $3,178,000 for the year ended December 31, 2023.
In a significant development, Brenmiller Energy has signed a $150 million exclusive distribution agreement with Rock Energy Storage, LLC, which is part of the company's broader strategy to implement a $500 million project pipeline.
These are some of the recent developments that highlight Brenmiller Energy's commitment to its growth strategy and focus on sustainable energy solutions.
InvestingPro Insights
As Brenmiller Energy Ltd. (NASDAQ:BNRG) welcomes new board members and secures additional investment from Alpha Capital Anstalt, the company's financial health and market performance remain critical for investors. According to InvestingPro data, Brenmiller Energy currently has a market capitalization of approximately $1.7 million. The company's revenue for the last twelve months as of Q4 2023 stands at $0.62 million, which reflects a significant decrease of 59.14% from the previous period. This contraction in revenue could be a point of concern for stakeholders considering the company's future growth prospects.
Despite the recent board changes and investments, Brenmiller Energy's financial metrics indicate challenges ahead. The company's gross profit margin is notably negative at -150.4%, and its operating income margin is deeply in the red at -1587.76%, suggesting operational inefficiencies that the company may need to address. Additionally, Brenmiller Energy's stock has experienced a sharp decline, with a one-year price total return of -91.5%, which could signal a lack of investor confidence.
InvestingPro Tips highlight that Brenmiller Energy may face difficulties making interest payments on debt and is quickly burning through cash, which aligns with the company's negative earnings metrics. However, analysts anticipate sales growth in the current year, and the stock is currently in oversold territory according to the Relative Strength Index (RSI), which could present a buying opportunity for contrarian investors. For those interested in a deeper analysis, InvestingPro offers additional insights and tips for Brenmiller Energy at https://www.investing.com/pro/BNRG, including 19 other tips that could help investors make more informed decisions.
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