Investor FAQ
The questions investors actually ask.
$8.5M for 30% of GridLynQ Inc., released in two tranches — $2M at signing and $6.5M at the pilot gate. Below: what each tranche buys, the three gate conditions on the second payment, and how the stake vests.
The raise
$8.5M for 30% of GridLynQ Inc., released in two tranches.
- What exactly is being raised?
- One seed round of $8.5M for 30% of GridLynQ Inc., paid in two tranches: $2M at signing and $6.5M at the pilot gate. The equity is in the operating company that holds the technology, the leases and the project entities.
- Why split it into two tranches?
- Technology, team employment build and legal work buys the things that must exist before any site can be committed. First pilot build is only drawn once the first pilot is real on paper — a recorded lease, an accepted interconnection position and a first lien on the plant and batteries.
- What does the host contribute?
- Land and a connection point — never capital. GridLynQ funds and owns the equipment and carries the performance and replacement obligation for the life of the plant.
Tranche 1 — $2M for 10%
Technology, team employment build and legal work. Released on signing. No site conditions.
- What does the first tranche pay for?
- Engineering and controls work to take the block design from drawings to a buildable package. Employment of the core team — engineering, delivery and site development. Entity, lease, SPV and licence legal work so a pilot can be signed cleanly.
- Is the first tranche conditional on anything?
- No. Released on signing. No site conditions. It funds the work that has to happen before a site can be committed, so it is not gated on a site.
Tranche 2 — $6.5M for 20%
First pilot build. Conditional. If the gate is not met, tranche 2 is not drawn.
- What does the second tranche pay for?
- Released only once the guarantees are in place. Recorded long-term host lease at the pilot site. Interconnection position established with the utility. First lien on the physical plant and the batteries.
- When is it drawn?
- Only when all three gate conditions below are satisfied in writing: the recorded host lease, the accepted interconnection position, and the perfected first lien. No hardware is ordered ahead of them.
Gate one — the lease
A recorded long-term host lease at the pilot site.
- What has to be signed?
- A host lease on a long-term host site agreement, recorded against the property rather than held as an unrecorded side letter.
- What protects the equipment on someone else's land?
- Landlord consent to GridLynQ equipment remaining on the land for the term, and no landlord lien against the plant or the batteries.
- Why is a handshake not enough?
- Until the lease is recorded, the site is a conversation, not a project. The larger cheque is never exposed to a site that cannot be held for the long term.
Gate two — the interconnection
An accepted interconnection position with the utility for the pilot block.
- What counts as an accepted position?
- An interconnection application accepted by the utility for the pilot block's capacity — not an enquiry, and not a study still in the queue.
- Why is interconnection the gate rather than construction?
- Interconnection timing, not construction, is what moves a schedule. No hardware is ordered against a study that has not been accepted.
- What about utility-imposed upgrades?
- Any utility-imposed upgrade scope and cost is identified before the draw, so it is priced into the pilot rather than discovered during it.
Gate three — the lien
A first lien position on the physical plant and the batteries.
- What secures the second tranche?
- A first lien on the battery containers, conversion equipment and balance of plant, filed and perfected before the funds are released.
- What is the asset worth if the pilot site fails?
- The containers are serialized, movable assets. Residual value does not depend on a single site — the plant can be relocated to another host.
The 30% stake
How the equity vests across the two payments.
- How does the 30% split?
- 10% vests with the $2M paid at signing. 20% vests with the $6.5M paid at the pilot gate.
- What happens if the gate is never met?
- The second payment is never drawn and the stake stays at 10%. There is no ratchet and no re-pricing of tranche 1 if tranche 2 is not drawn.
- What is the equity in?
- GridLynQ Inc., the operating company. It holds the technology position, the host leases and the project entities — not a single site vehicle.
Risk and status
What is true today, stated plainly.
- What is the largest risk?
- Interconnection timing. That is exactly why the accepted interconnection position is a condition of tranche 2.
- Is anything energised today?
- No block is energised today, and no pilot site is named publicly until it is signed.
- What is the patent position?
- The GridLynQ method is the subject of a provisional patent filing — pending, not granted.
- Where do the EcoJiva licence and the government channel stand?
- The EcoJiva licence is at term-sheet stage; nothing is executed. The government channel is at registration and assessment stage; no award is held.
- Are these final terms?
- No. Figures, gates and vesting are the terms GridLynQ Inc. is proposing. This page is indicative and for discussion only — it is not an offer of securities, and final terms are subject to definitive documentation and counsel on both sides.
Take the written terms with you
The same two tranches, gates and vesting in a short document you can read offline, then write to us.
Indicative and for discussion only. Not an offer to sell or a solicitation to buy securities, and not legal, tax or investment advice. Final terms are subject to definitive documentation and counsel on both sides.