Kraken Wins Deep-Sea Battery Contract with Ocean Infinity
- Business & Finance
Kraken Robotics said it has agreed a deal for Ocean Infinity to purchase $9 million of Kraken’s deep-sea batteries.
According to the company, delivery dates are expected between Q4 2018 and Q4 2019.
Kraken will arrange for these batteries to be built by Kraken Power, an entity in which Kraken currently holds a 19.9% interest.
The first purchase order has been issued for $2.5 million and the subsequent purchase order of $6.5 million is expected in early Q1 2019.
Karl Kenny, Kraken’s president and CEO, said: “We are very pleased to receive this large battery order from Ocean Infinity to provide pressure tolerant battery technology to their AUVs. Kraken added this battery technology to our product portfolio through an investment in Kraken Power GmbH in Q2 2017, pursuant to which we acquired our current 19.9% ownership position.
Kraken Plans to Exercise Option for Majority Control of Kraken Power GmbH Later This Year
Under the terms of our agreement with Kraken Power, we can increase our ownership to 75% from 19.9% by exercising the conversion option on our convertible note and paying an additional €200,000.
“Since May 2017, Kraken Robotics has introduced Kraken Power to several new military and commercial customers and Kraken Power has successfully delivered initial orders. Kraken Power’s unique pressure tolerant gel encapsulation technology for lithium polymer batteries provides an attractively priced, eco-friendly and superior alternative to oil compensated batteries currently used for subsea battery applications. Given the success of this relationship to date, Kraken expects to exercise its right to acquire the additional 55.1% ownership interest in Kraken Power at some point prior to the end of Q4 2018.”