RoHo Capital Opportunity Fund has lent NeoVolta $20 million, and the facility can rise to $30 million if both sides agree. The money backs the 210,600 square foot battery plant NeoVolta is building at Pendergrass, Georgia, with LONGi.
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NeoVolta, a United States-based manufacturer and developer of domestic battery energy storage systems, has drawn $20 million from a senior credit facility that can rise to $30 million if both sides agree, and the full first tranche was funded at closing. The lender is RoHo Capital Opportunity Fund, a joint venture formed by Horizon Technology Finance Corporation, an affiliate of Monroe Capital, and CR Financial Holdings, which is the holding company for Roth Capital Partners.
The company is based at Poway, California, is listed on NASDAQ as NEOV, and serves residential, commercial and utility applications. With its joint venture partner LONGi, it is developing a 210,600 square foot plant at Pendergrass, Georgia.
The plant is expected to open with annual production capacity of up to 2 GWh, and NeoVolta expects it to scale to 8 GWh over time. The company says that the borrowing is meant to support that ramp and its move into larger commercial and utility-scale work.
What the line is built for matters as much as how big it is. The systems are designed to meet US domestic content and supply chain requirements, so the capacity this loan funds qualifies where imported product does not.
RoHo is aimed at small- and micro-cap public companies, the segment where a borrower is listed but is too small for a conventional bank facility. Horizon itself lends to venture capital and private equity-backed companies and to publicly traded firms across technology, life science, healthcare information services and sustainability, and it is externally managed by Horizon Technology Finance Management.
CR Financial Holdings invests in public and private companies and in private investment funds, and Roth Capital Partners is an investment bank that works with growth companies and their investors. Between them they bring the public markets side of the venture, while Horizon brings the lending.