Electrovaya Inc. is planning to raise up to $25 million through a private placement of debentures. Expected to close by March 31, the Toronto-based company has already secured an agreement with a lead investor for $15 million.

The net proceeds of the sale of debentures will be used for working capital to fulfill purchase orders, and for general corporate purposes. Electrovaya has retained Origin Merchant Securities Inc. as its exclusive financial advisor on the offering.

The debentures will have a term to maturity of 36 months and bear interest at a rate of 9% per annum, payable semi-annually. Unit holders will also have the right to convert all or part of their debentures into common shares at a price of $2.15 per share. The minimum conversion amount will be $50,000.