Westport, Cartesian Sign Investment Agreement
By Mike Brezonick11 January 2016
Westport Innovations Inc. has entered into an agreement with Cartesian Capital Group, of New York, for up to $71.3 million in financing to support global growth initiatives. The financing agreement immediately provides $17.5 million in non-dilutive capital with up to $53.8 million in additional capital contingent on reaching key milestones and establishing new investment opportunities.
The financing package includes a contingent payment derived substantially from future High Pressure Direct Injection (HPDI) product sales, a convertible debenture, non-core asset sales, and incremental funding capacity to support future product development.
As part of the financing agreement, Peter Yu, managing partner and founder of Cartesian, will be appointed to Westport's Board of Directors.
“This financing creates a solid financial foundation and clear path to the commercial launch of key products,” said David Demers, CEO of Westport. “It also removes any concern regarding Westport's balance sheet.
“The commitment from Cartesian signifies the importance of natural gas to the environment and ratifies that short-term energy market volatility has masked the importance of methane as a transport fuel. The natural gas engine and vehicle industry has a compelling future and Westport represents a key part of that future. This financing will be a critical part of our success and the addition of Peter Yu to our Board of Directors will add keen financial acumen and bench strength.”
Cartesian Capital Group LLC is a global private equity firm that manages more than $2.4 billion in capital.