Envirosuite said that Hitachi Construction Machinery will invest $10 million to acquire approximately 12% of Envirosuite's share capital.
The transaction, conducted at 5.8 cents per share, marks a premium of 29% to the latest closing price and 32% to the seven-day volume-weighted average price.
The shares will be issued in two tranches, with the first tranche expected on or around Sept. 4, and the second tranche subject to shareholder approval at Envirosuite’s annual general meeting later this year.
The investment aims to fund a strategic collaboration between both companies to advance ESG and net zero initiatives in the mining sector.
Envirosuite CEO, Jason Cooper, commented, "We are thrilled to be launching into the top tier of global mining services with Hitachi Construction Machinery and their subsidiaries."
"Together, we expect to set new standards in operational management and environmental responsibility for the Mining industry globally," Cooper added.
Hitachi Construction Machinery Vice President and Executive Officer, President of mining business unit, Eiji Fukunishi, expressed enthusiasm about the partnership, "We are excited to be investing in a strategic relationship with Envirosuite."
"Their decades of experience and commitment to environmental and social responsibility while helping customers achieve their productivity goals aligns perfectly with Hitachi's vision for ‘ensuring a prosperous land and society for the future," Fukunishi said.
The collaboration is expected to leverage Envirosuite’s environmental impact data and Hitachi Construction Machinery’s fleet performance data to enhance mining site productivity and support the mining industry's net zero targets.
Envirosuite's innovative environmental intelligence technology will serve as a foundation for the joint effort.