Electrovaya Completes Final Tranche of Private Placement

TORONTO, ONTARIO--(Marketwired - Oct. 4, 2017) -

NOT FOR DISTRIBUTION IN THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Electrovaya Inc. (TSX:EFL)(OTCQX:EFLVF) ("Electrovaya", or the "Company") is pleased to announce that it has completed the second and final tranche of its previously announced private placement of units (the "Units"). The Company received subscriptions for Units in excess of the initial planned offering size of $5,000,000, and the second tranche consisted of the issuance of 604,347 Units at a price of $1.15 per Unit for gross proceeds of approximately $695,000. The total aggregate gross proceeds raised in the private placement amounted to approximately $5,295,000.

Each Unit is comprised of one common share of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share at a price of $1.45 for a period of 60 months from the closing of the Offering.

The Common Shares and Warrants composing the Units are subject to a hold period of four months plus a day from the date of issuance pursuant to applicable securities laws. The proceeds of the Offering will be used for general working capital purposes.

The Company paid cash finders fees in the aggregate amount of $48,649.93, representing 7% of the cash proceeds raised in connection with the subscriptions for Units. The Company also issued that number of broker warrants (the "Broker Warrants") as is equal to 7% of the number Units purchased by the subscribers. Each Broker Warrant entitles the holder thereof to purchase one Common Share at a price of $1.45 for a period of 60 months from the date of issuance.

The Common Shares composing the Units and underlying the Warrants and Broker Warrants have been conditionally approved for listing on the Toronto Stock Exchange.

About Electrovaya Inc.

Electrovaya Inc. (TSX:EFL)(OTCQX:EFLVF) designs, develops and manufactures proprietary Lithium Ion Super Polymer® batteries, battery systems, and battery-related products for energy storage, clean electric transportation and other specialized applications. Electrovaya, through its fully owned subsidiary, Litarion GmbH, also produces cells, electrodes and SEPARION™ ceramic separators and has manufacturing capacity of about 500MWh/annum. Electrovaya is a technology focused company with extensive patents and other Intellectual Property. Headquartered in Ontario, Canada, Electrovaya has production facilities in Canada and Germany with customers around the globe.