Tropical Battery Gears Up for Big Moves in 2025

2025 will be a big year for Tropical Battery as the company has revealed bold plans to grow its business and reward shareholders. 

Speaking on Taking Stock with Kalilah Reynolds, CEO Alex Melville, shared plans for another equity raise, a move to the Jamaica Stock Exchange’s (JSE) Main Market, and the resumption of dividend payments in 2025.

Wanting to avoid the seemingly negative stigma attached to APOs, Melville said the company plans to raise funds through a “secondary offering”. 

He said the company has already submitted the appropriate documents to the relevant authorities and hopes all will be approved by January.

According to Melville, the funds will be used to repay the bridge loan taken for the acquisition of Rose Batteries in California. 

“We submitted the prospectus to the FSC, and hopefully in January, we’ll raise funds to pay down the bridge loan,” he explained.

The raise will see Tropical surpassing the Junior Market’s capital limit and a move to the main market would be necessary.

Melville sees this as a natural step forward. “Why not move to the Main Market? It offers opportunities for larger investors and more liquidity,” he said. While the Main Market comes with higher taxes, Melville noted that the company was already facing half of these tax obligations by the end of 2024.

Finally, shareholders can look forward to the return of dividend payments in 2025. Tropical Battery had consistently paid and increased dividends for the first three years after listing. However, no dividend was issued in 2024 due to the significant cost of the California acquisition and the board’s conservative approach. Melville reassured shareholders, saying, “We’ll start paying dividends in 2025 for sure. We believe the acquisition will positively impact dividends going forward.”

With these plans, Tropical Battery is positioning itself for long-term growth while keeping its shareholders in mind. The year 2025 promises to be a pivotal one for the company.