Chakratech in a pilot with Arco Corp in the United States – the capital market

Chakratec, the Israeli start-up that has developed energy storage technology for fast charging stations for electric vehicles, is expected to issue this week in Tel Aviv, and a moment before that the company is updating on a new pilot. In an update to her prospectus, it was revealed that a memorandum of understanding was signed in front of the girls

Arco Corp (US)
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, According to which it will purchase one Chakratech storage system that will be installed at one of the gas stations it operates.

Arco is considered the seventh largest convenience store and gas station operator in the United States, with 3,000 sites in 33 of its states, including 1,300 convenience stores and self-operating gas stations. The pilot is expected to begin in the first half of 2022 and take place over 3 months. Arco, for its part, will make two payments for Chekratech’s system. Arco will also be entitled to options in the amount of half a million dollars for the purchase of Arco shares at an exercise price of 120% of the issue price.

Chakratech hopes that the pilot will lead to wider cooperation, and so they write in this context: “The Arco Group sites may be used for a wide distribution of fast charging sites for electric vehicles and hence significant commercial potential for energy storage systems made by the company, as a solution for enabling fast charging sites. The electricity in them is limited in power. ”

“In addition, the Arco Group has significant positioning, deployment and resources in North America and hence its ability to serve as an influential distributor that assists the company in US sales processes, from market penetration and continued fruitful cooperation while growing the company and deploying its systems in North America.” .

If Barko wants to continue the contract, they will be able to order another 5-10 systems and will receive exclusive distribution rights in the US in exchange for royalties to Cherkatek. If Arco meets the minimum purchase targets of 1,200 systems in total between 2022-2027, the distribution right will be extended until the end 2030. If you purchase at least 1,750 systems between 2028-2030, Arco will be able to continue to distribute the product exclusively for another 5 years.

Chakratka will raise NIS 100 million from the public before a value of NIS 400 million after the money, in an IPO led by Leumi Partners and Apex IPOs. Chekratek’s last private fundraiser was made in November 2019 at a value of about $ 30 million before the money, or about $ 40 million after that. The current recruitment therefore reflects a doubling of the value to about three times in about a year. The company is accompanied by a “live business” comment, it has not yet recorded revenue and has not accumulated orders, but has signed a number of distribution agreements. Its most prominent shareholders are Natural Capital (19%), which also issued Ogwind, Electrion and Blade Ranger, the Ella Fund (25%), G-TEK Israel (1.7%), Goldbel (3%) and the I-Argento Fund (20). %).

The technology developed by the company is used to store energy in the charging stations of electric vehicles, in order to enable fast charging at any given moment, even when the electricity supply in the network is low, thus eliminating its dependence. Thus, the electricity is stored in the charging station when no vehicle is using it, so that when a vehicle is connected to the charging station it will have enough electricity to fill the battery in about 20 minutes, instead of prolonged charging for 5 hours, and with low abrasion of battery life. -15 years.

The company is building on expanding the use of electric vehicles, which will lead to increasing use of charging stations and expanding demand in electricity networks. According to Chekratech, not everywhere the existing infrastructure is suitable for such demands, and using its product will be a cheaper alternative to improving the infrastructure in some cases. The company also claims that the development of lithium-ion batteries with a larger capacity in electric vehicles will serve its product as well, as this will only increase the need for faster charging.