Azure Dynamics Corp. (TSX:AZD) says the Canadian subsidiary of a major American auto parts company has agreed to purchase $6.3 million worth of its common shares.
The company said Tuesday that the wholly-owned Canadian subsidiary of Johnson Controls Inc. has agreed to buy 21.1 million of its common shares at a price of 30 cents per share. This will give Johnson Controls' subsidiary a 3.4 per cent stake in Azure.
"This strategic investment, which is at a premium to the recent trading price of our shares, is a meaningful endorsement of our technology by the world's leading supplier of automotive batteries and a company deeply experienced in integrated automotive systems solutions," stated Azure CEO Scott Harrison.
The company said it plans to use the proceeds of the investment to fund its ongoing product development and commercialization efforts, as well as for general corporate purposes.
Azure develops hybrid-electric and electric components and powertrain systems for commercial vehicles.
Shares in the company, which announced the deal after markets closed, added one cent to 28 cents in Tuesday trading on the Toronto Stock Exchange.