Electric truck manufacturer Zeus Electric Chassis Inc. is looking for a round of fundraising as large as $50 million, CEO Wayne Kugel said.
The White Bear Lake-based company has opened the raise to accredited investors and is receiving interest from individuals as well as entities like investment bankers and family offices. The investment will be sold in convertible notes, which will become equity in the company once Zeus Electric receives a valuation, Kugel said. Silicon Prairie Capital Partners is serving as a placement agent for the round.
The firm will also open the round of fundraising up to non-accredited investors up to a total of $5 million later this year, he said.
The fundraising effort was financed by Zeus Electric's recent $751,000 seed round, which went in part to hiring marketing and PR agencies, Kugel said. He hopes the bulk of the fundraising will happen in the next three months.
Zeus Electric has 13 employees. Earlier this month, it signed a memorandum of understanding with Choctaw Defense Manufacturing to produce parts for Zeus's trucks. Choctaw Defense Manufacturing is an Oklahoma-based manufacturer owned by the Choctaw Nation of Oklahoma.
In July, the materials for Zeus Electric's first order will arrive in White Bear Lake. That order is a five-vehicle deal with the Sacramento Municipal Utility District worth $1.2 million.
Fifteen states have signed agreements to convert 30% of their work truck fleets to electric power by 2030, with more aggressive goals in New York and California. That means Zeus' potential market will be $8 billion by then, Kugel said.
