Roth CH Acquisition IV Co.’s (NASDAQ:ROCG) target company, Tigo Energy, announced this afternoon that it has signed a definitive agreement with L1 Energy for $50 million of newly issued convertible notes.
The notes will bear a fixed annual interest rate of 5% with a maturity date of 36 months and may be converted at the option of the investor into shares of Tigo common stock or an equivalent equity created as a result of the company’s merger with ROCG.
Today’s capital is expected to provide support for Tigo’s growth opportunities while it is still private through the deployment of its intelligent solar and energy storage solutions. Additionally, Tigo expects to use the proceeds to repay its existing debt, which stands at $20 million as of September 2022.
Roth CH IV recently inked its $600 million deal with Tigo Energy on December 6, 2022. Campbell, California-based Tigo manufacturers components that optimize and enhance safety for solar panel arrays, with installations on seven continents
The combined company is expected to trade on the Nasdaq under the symbol “TYGO” once the deal is completed in the second quarter of 2023.