Braidy Industries and Braidy Atlas Facts

Facts, Updated 8/12/19

  • The Braidy Atlas mill in Ashland, Kentucky (Braidy Atlas) will produce non-proprietary aluminum sheets for the automotive and food and beverage industries. Braidy Industries continues to be a private industry commercial supplier and has no history of any agreements of any nature to supply aluminum to any branch or department of the US Government.
  • Braidy Atlas is the first new U.S. greenfield rolling plant in 37 years.
  • Braidy Industries has raised over $300 million of common stock equity to date. The company is currently debt free. Braidy Industries raised $20 million at a price of $5 per share in its founding equity round. In its second round of equity fundraising, the company issued $75 million at a price of $10 per share. In its recent issuance, the company’s equity was valued at $18 per share. The Commonwealth of Kentucky invested $15 million in the founding equity round and has experienced a 250% appreciation in its investment in Braidy Industries common stock to date.
  • Braidy Industries has never lobbied the House or Senate on any sanctions legislation or issue. Moreover, Braidy Industries first engaged the law firm of Akin Gump in May 2019, long after congressional consideration of sanctions ended.
  • Akin Gump was hired on May 20, 2019 for general government relations representation in Washington, specifically to help Braidy Industries create transparency about the $1.7 billion Braidy Atlas mill greenfield project and efforts to rebuild Appalachia. So far, they have helped to provide updates on the construction, related investments, skills re-tooling program at a local technical college that currently enrolls 120 students, and an economic impact study that forecasts Braidy Industries generating $2.8 billion of revenue in Kentucky by 2021.
  • Concluding a competitive process between several states, Braidy Industries decided to locate in Kentucky, having received the most competitive bid from the state, which included a $15 million equity investment in the company’s seed capitalization round through Kentucky’s Commonwealth Seed Capital Fund, an independent fund of the Kentucky Cabinet for Economic Development that invests in early-stage Kentucky businesses.
  • The Commonwealth of Kentucky’s legislature unanimously supported its investment in Braidy Industries two years ago with full bipartisan support and no votes against it. The vote was 128-0 in the House and the Senate.
  • The list of founding shareholders has been published. Currently, Braidy Industries (the parent company of the Braidy Atlas mill) has over 800 shareholders. The majority of these shareholders are Kentuckians. We believe Braidy Industries has no Russian investors.
  • Braidy Industries is targeting to close its remaining equity issuance in the next 90 days, to be followed by a public listing on the NYSE or Nasdaq.
  • No one from RunSwitch PR was introduced to Braidy Industries, including Scott Jennings (who does not work with Braidy Industries on this project), prior to June 2019, when the firm was hired for local (Kentucky) PR. This hire coincided with material developments in the business, including key customer commitments and our SEC equity raise. Local PR is necessary because many Kentuckians are particularly interested in updates and hiring dates.
  • No employee or Director of Braidy Industries has ever spoken to Mitch McConnell about Rusal, or the Rusal sanctions.
  • The Rusal investment LOI was signed on April 13 and announced on April 15. The Rusal investment was not committed until the LOI signing on April 13 and was not definite until both Braidy Industries’ and Rusal’s boards approved the LOI on May 16, and En+’s board approved the investment on July 5, 2019.
  • Braidy Industries is not seeking loan financing or financing of any other nature from the US Government.
  • Braidy Industries withdrew its application to the US Department of Energy’s Advanced Technology Vehicle Manufacturing program, which would have provided low-cost debt, following favorable response in the capital markets and offers for more competitive debt financing packages from private lenders.
  • Other than the ATVM program, Braidy Industries has never applied for a loan from any domestic or foreign governmental entity for its Braidy Atlas mill.
  • The Braidy Atlas mill capacity is already 200% pre-sold, utilizing non-binding and binding commitments to private industry customers for the first seven years of production.
  • Braidy Atlas, the first aluminum rolling mill to secure a “minor contributing source” air permit from the Federal EPA, targets 20% lower carbon emissions than the next lowest US rolling mill competitor.
  • Braidy Atlas will become the first rolled products aluminum sheet producer to use 100% low-carbon inputs on an ongoing basis from its inception.
  • Rusal is investing $200 million of the $1.7 billion of capital required to build the Braidy Atlas mill (12%) for a minority equity stake in Braidy Atlas mill. The Braidy Atlas mill budget currently contemplates $1.2 billion in debt financing and $500 million in equity financing.
  • The 10-year supply contract between Braidy Atlas and Rusal represents the world’s largest low-carbon primary aluminum slab order for a single mill. The contract will enable Braidy Atlas to have a competitive advantage in terms of cost, quality and sustainability while providing a market value of over $5 billion to Rusal. The only alternative for the investment would have been to contract “non-green” aluminum from China.
  • The minority investment from Rusal in subsidiary Braidy Atlas (i.e., not Braidy Industries), was announced on the floor of the NYSE on April 15, 2019. The Wall Street Journal was the first to report the announcement.
  • Currently there are zero other investors in Braidy Atlas besides the parent company, Braidy Industries, and Rusal; however, Braidy Atlas is seeking additional investors. Rusal has invested in the Braidy Atlas mill, but not the parent company Braidy Industries. En+ is not investing in Braidy Industries or Braidy Atlas.
  • Rusal is the second-largest aluminum company in the world. Its largest market is North America.
  • Thanks to the hydro-produced, low carbon aluminum that Rusal will provide to the mill, Braidy Atlas mill will have the lowest carbon imprint for its end-to-end manufacturing process across the global aluminum rolling mill industry.
  • Braidy Industries will be announcing other major partnerships and investors soon. Braidy Industries has publicly stated that it currently has over $1 billion of indicated interest for the remaining $300 million equity portion of the Braidy Atlas mill construction budget.
  • Rusal is a public company now subject to regular and continuous oversight by U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC). There are a number of corporate governance and compliance requirements, audits and internal controls that now apply to Rusal, as overseen by OFAC. Rusal is possibly one of the most heavily monitored and regulated public companies in the world.
  • Under terms agreed to and monitored by OFAC, Oleg Deripaska has no management or day-to-day involvement in Rusal. His stake in En+, Rusal’s “parent” company, has been reduced to a minority investment with no access to dividends.
  • Rusal will supply 200,000 tons of certified low-carbon prime aluminum ingot and slabs each year for a 10-year period, with market value of approximately $5 billion. Rusal is the only prime aluminum supplier with the capacity to provide 200,000 tons of certified low-carbon prime aluminum ingot and slabs each.
  • Braidy Industries is thankful for the support provided by Rusal, the world’s second-largest aluminum company and largest supplier of low-carbon aluminum. Leading the rebuild of Appalachia is not easy. Unemployed coal miners, steel workers and railroad workers in Appalachia need new advanced manufacturing jobs. Braidy Industries welcomes Rusal’s contribution to this important economic revitalization.
  • Braidy Industries is audited by KPMG and has a SEC Reg D offering open. Thus, Braidy Industries is under SEC purview. Braidy Industries’ bank is Credit Suisse. Braidy Industries has a full team of lawyers including Vedder Price and VanAntwerp Attorneys.
  • Braidy Industries’ Board includes Dr. Michael Porter, Harvard Business School Professor, and Dr. Christopher Schuh, Head of MIT’s Department of Materials Science. Ret. General Norty Schwartz, also on the Board, served as the 19th Chief of Staff of the United States Air Force and as a member of the Joint Chiefs of Staff, leading Air, Space and Cyber for the Department of Defense.
  • Braidy Industries owns an MIT-incubated company and a Northwestern-incubated company. These companies are separately operated from the Braidy Atlas mill.
  • Braidy Industries has donated to well over $300,000 to community causes, has mentored over 20 interns in the last two years, and has granted 25 college scholarships.
  • Braidy is taking a leadership position in the effort to fight the opioid crisis in Northeastern Kentucky.
  • Overall, Braidy Industries is investing $1.7 billion in Appalachia.

Timeline of Key Dates:

Feb/March 2017After evaluating nearly two-dozen sites, Braidy Industries selects Indiana as site for the new aluminum mill
March 2017Braidy Industries CEO is introduced to Kentucky Governor Matt Bevin who wants the opportunity for Eastern Kentucky
March 2017Kentucky Legislature votes unanimously to make $15 million investment in Braidy Industries’ seed capitalization round at $5/share
4/26/2017Braidy Industries announces that it will build an aluminum mill and headquarters in Ashland, KYBraidy Industries Inc. to Spend $1.3 billion to Build the Highest Quality, Lowest Cost Auto Body Sheet and Aerospace Plate Aluminum Rolling Mill in the United States
12/25/2017Braidy Industries releases the names of all of its shareholdersBusiness world A-list together as shareholders in Braidy Industries
6/8/2018Braidy Industries breaks ground at EastPark CampusBraidy Industries: Groundbreaking 2018
8/15/2018First class of students enroll at Braidy Industries advanced degree program developed in conjunction with Ashland Community and Technical CollegeClasses start for first students in ACTC’s Braidy Industries program
12/19/2018US Treasury department announces that sanctions will be lifted on Rusal in one monthRusal shares soar, aluminum falls as U.S. lifts sanctions
1/15/2019Braidy Industries CEO has casual dinner with Rusal marketing representative. All existing Rusal primary aluminum customers had been continuously operating under exemptions during entire sanctions periodThere is a global structural shortage for prime aluminum. If a company is sanctioned, then customers will have to qualify for an exemption to continue doing business with the company. Most US customers of Rusal qualified for exemptions and continued to receive primary aluminum during the sanctions period.
1/27/2019Rusal is formally removed from US sanctions listU.S. Removes Rusal From Sanctions List
2/27/19 – 3/1/19Braidy and Rusal execs in Ashland, KY for tour of ACTC and mill site
3/2019En+ senior leadership first briefed on Braidy as a potential opportunity
3/22/2019Negotiations for a supply agreement and investment commence between Braidy and Rusal
4/4/2019Braidy Industries CEO meets En+ Chairman for the first time in NYC
4/13/2019Agreement on terms for investment and supply LOI is reached
4/15/2019Announcement of investment and supply agreement LOI is made at NYSE (April 13 signing)Rusal to Back New U.S. Aluminum Mill, the Largest in Decades
4/25/2019Braidy Industries announces economic impact of $1.5 billion in revenue generation for Kentucky by 2021Economic Impact Study: Braidy Industries to Generate $2.8 Billion for Kentucky by 2021
4/29/2019Braidy announces collaboration with key customer BMW, rooted in sustainability and for targeted supply agreement. Braidy will begin supplying in 2023Braidy Atlas Announces Collaboration with Car Manufacturer Focused on Sustainability and Supply Chain
5/21/2019Braidy Industries hires Akin Gump law firm (not individual attorneys) for External Government Relations
6/11/2019Braidy Industries hires RunSwitch for statewide PR only (first business call)
7/5/2019En+ Board Approves LOI
7/25/2019Braidy Industries closes fully-subscribed limited CF (crowdfunding) equity offer at $18/shareBraidy Industries attracts Kentucky backers in mill project