ABGF and CEFC’s investment in 3ME Technology
VCF Capital acted as financial advisor to 3ME Technology on its growth capital raising.
$21 million | October 2021
Company Overview
3ME Technology (3ME) is a Newcastle-based battery systems manufacturer providing advanced battery electric power and mobility solutions to the resources, defence and maritime markets.
Founded in 2018, 3ME’s innovative battery technology and deep connections in the resources and defence sector has lead 3ME to rapidly grow into a leading advanced battery technology company.
3ME has an assembly facility with an estimated monthly output capacity of 50MWh. It has signed contracts with mining OEM’s and defence primes transitioning the company from R&D to commercialisation. 3ME is also a valuable member of the Australian Defence industry’s C4 EDGE Program.
Background
VCF Capital was engaged as financial advisor to 3ME to raise capital to assist 3ME in expanding its operations to meet a significant forward order schedule for the retrofit electrification of heavy vehicle fleets in the Australian mining sector. The capital raising would also be used to further develop the sovereign manufacturing capability of innovative high-performance battery technology and e-mobility systems for the Defence industry.
Transaction Summary
In October 2021, The Australian Business Growth Fund (ABGF) and Clean Energy Finance Corporation (CEFC) invested $20 million in 3ME by way of a convertible note, with ABGF committing $15 million, CEFC committing $5 million and a family office committing $1 million.
As part of the transaction, 3ME appointed to the board, representatives from both ABGF and CEFC to provide strategic advice on its path to commercialisation and access to both investors’ vast network in the clean energy and resources markets.
Outcome
VCF Capital managed a process that saw significant interest received from domestic private equity funds, family offices and credit funds arising from VCF Capital’s network, which lead to a high profile consortium of investors investing in the Company.
The growth capital from ABGF and CEFC will enable 3ME to continue to commercialise and be a market-leading innovator in developing battery systems technology for its target markets and accelerate Australia’s sovereign onshore battery manufacturing capabilities.