TROPICAL Battery Company Limited graduated to the Jamaica Stock Exchange Main Market this week, but the milestone comes against a backdrop of heavy debt, net losses, and an undersubscribed share offer that raised just over a third of its target.

The additional public offering, which closed on July 4, brought in an estimated $696.6 million from the issue of 372.5 million new ordinary shares. That was lower than the original target of $1.79 billion that the company had been aiming to raise. Those shares were officially listed Tuesday alongside Tropical Battery’s move to the Main Market. The proceeds were intended to repay short-term borrowings and ease liquidity pressures.

“We are working towards issuing shares for the funds raised in our secondary public offering, which will primarily be allocated to reduce short-term debt obligations thereby alleviating liquidity pressures,” noted CEO Alexander Melville in the overview in its recently revised, unaudited, third-quarter report.

As of June 30 the company reported total liabilities of $7.2 billion, including debt amounting $4.7 billion. With equity of $894 million, Tropical Batteries’ debt is 4.3 times its equity. Short-term obligations include a $300-million bond carrying interest of 11.75 per cent and maturing in July 2025, a US$9.5-million bridge loan from CIBC Caribbean equivalent to about $1.47 billion and due in June 2025 with interest at 8.5 per cent, and revolving credit lines of $253.9 million with rates as high as 16.95 per cent. The company has disclosed that it is in discussions with CIBC Caribbean and bondholders to extend or refinance these facilities. Management has outlined a plan to reduce leverage to a one-to-one debt-to-equity ratio.
Tropical stated that the company plans to pay down a part of the CIBC loan.

“We are exploring options to address long-term debt, focusing on lowering financing costs and strengthening our capital base. These efforts include evaluating potential debt-to-equity conversions, subject to necessary approvals and processes, and considering asset optimisation strategies to enhance liquidity,” the CEO’s overview outlined.

These measures come as the company continues to report weak financial performance. Tropical Battery reported a net loss of $53.11 million for the third quarter of 2025. Losses for the nine months to June reached $146 million. Consolidated revenue for the nine months rose 8.5 per cent to $4.63 billion, up from $4.27 billion in the prior year. The company credits this to a strong demand for energy storage products, particularly batteries and accessories, as well as the inclusion of three quarters of the US subsidiary’s operations in financial year 2025 compared to two quarters in 2024. The energy storage segment was the main driver, generating $4.41 billion in revenue year to date — an 18.1 per cent increase from $3.73 billion, with growth coming from Jamaica and contributions from US operations. By geography, Jamaica contributed 54 per cent of year-to-date revenue, reflecting record net profit performance in the third quarter. The United States accounted for 44 per cent, supported by steady growth despite temporary operational disruptions, while the Dominican Republic contributed 2 per cent, with management pointing to strong potential for expansion in renewables during the fourth quarter.

The company has also pointed to regional renewable energy targets that support its long-term strategy. Jamaica is advancing toward 50 per cent renewable energy penetration by 2030, with 220 megawatts of utility-scale projects incorporating storage planned for 2025. In the Dominican Republic renewables are expected to account for 25 per cent of the energy mix by the end of its 2025 financial year, with solar projected to rise from 8 per cent to 17 per cent.

Tropical Battery said these developments align with its focus on expanding energy storage and renewable solutions across the Caribbean and beyond. The renewables segment, however, faced challenges due to project delays, posting year-to-date revenue of $220.2 million compared to $532.1 million in the prior year. However, management anticipates a rebound in the final quarter as planned renewable energy projects in Jamaica and the Dominican Republic come on stream.

“With over $500 million in renewable energy projects slated for completion in Jamaica and the Dominican Republic in the fourth quarter we anticipate consolidated revenues of approximately $2 billion for the quarter, marking a significant rebound from Q3,” CEO Alexander Melville said in the company’s overview.

The group’s primary activities are selling and distributing energy storage solutions across Jamaica and the Caribbean, including automotive and renewable energy batteries, while also providing custom battery assemblies for mission-critical applications through Rose Batteries in the US.

Since the start of the year Tropical Batteries’ share price has lost 28.5 per cent of its value, closing Tuesday at $1.80 compared to its APO of $1.87.

Tropical Battery executives at the company’s listing on the Jamaica Stock Exchange Junior Market in September 2020. The company this week graduated to the Main Market.

For the nine months ended June 30, 2025 Jamaica contributed 54 per cent of Tropical Battery’s $4.63 billion revenues while the United States accounted for 44 per cent, with the Dominican Republic making up the remaining 2 per cent.