Innovative Climate Tech Company XNRGY Closes Growth Equity Financing to Expand Capacity

• XNRGY to enable more mission critical customers with cutting edge HVAC equipment

• Funding co-led by Canadian institutional investors, MKB and Idealist Capital

MONTREAL, March 20, 2023 /PRNewswire/ - XNRGY Climate Systems ("XNRGY"), a leader in the design and manufacturing of energy efficient commercial HVAC systems, today announced the close of a substantial growth capital raise co-led by MacKinnon, Bennett & Co. ("MKB"), a specialized growth equity firm focused on the energy transition, and Idealist Capital, a private growth capital fund focused on the energy transition and decarbonization sectors.

XNRGY's Arizona Facility Office Design (CNW Group/XNRGY Climate Systems ULC)

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Led by industry pioneers with decades of combined working experience, X_NRGY is on a mission to reduce the carbon footprint of commercial buildings through its high-performance HVAC systems that are designed to increase energy efficiency, reduce energy costs, and provide superior indoor air quality to mission critical customers_ such as hospitals, clean rooms, educational institutions and data centers.

This funding will enable XNRGY to expand its current facility in Montreal, Canada by 100,000 square feet of production capacity and replicate a new facility in Mesa, Arizona with 250,000 square feet production capacity. These state-of-the-art manufacturing facilities will accelerate the ability of its world-class team and technology to meet the rapidly growing demand of its customers spanning coast to coast.

"XNRGY is at the forefront of climate technology and this latest substantial investment by prominent institutional investors backed by leading Canadian sovereign and financial institutions, is a testament to how XNRGY will continue to deliver on our client's net zero and energy savings goals. We're pleased to work closely together with investors MKB and Idealist Capital on this exciting road ahead," said Wais Jalali, the Founder, Chairman and Chief Executive Officer of XNRGY.

Ken MacKinnon, Co-Founder, and Managing Partner of MKB said, "XNRGY brings cutting-edge technology solutions to an industry that has traditionally been slow to innovate at a critical time when reduction of energy consumption in buildings is becoming an urgent priority. With its expansion plans in motion, XNRGY is well-positioned to execute on its mission to enable customers to lower their carbon footprint".

"We're tremendously impressed with XNRGY's approach to decarbonizing HVAC, their superior, world-class climate technology and their leadership team.  We're proud to support XNRGY as they scale their business and generate a positive climate impact for their clients," said Pierre Larochelle, Co-Managing Partner at Idealist Capital.

About XNRGY Climate Systems

XNRGY is a privately held climate technology company that designs, engineers, and manufactures sophisticated, sustainable innovative solutions focused on reducing carbon footprint, water usage and energy consumption. Key products include large custom refrigeration and chilled water air handling units, vertical and horizontal CRAC and CRAH units up to 600 kW, clean room systems, energy recovery systems, low dewpoint EV manufacturing units, and factory installed turnkey controls platform.  XNRGY uses BIM/CFD to prevent transient performance failures in mission-critical facilities. XNRGY looks at iso vectors and pressure distribution to design the most efficient systems for clients. This contributes to lower KW while delivering the maximum air to the buildings as well as adding to LEED and NET ZERO initiatives (Paris Climate Accord). To learn more about XNRGY, visit www.xnrgy.com

About MKB

MKB is a North American private investment firm that specializes in providing growth equity to companies driving innovation in the energy, transportation, climate tech, food and ag and related sectors. MKB takes significant minority positions in its portfolio companies and proactively assists management teams in reaching their full potential. To learn more about MKB, visit www.mkbandco.com

About Idealist Capital

Idealist Capital is an investment firm focused on accelerating the energy transition by providing growth capital to entrepreneurs across North America, with a primary focus on the Canadian market. Idealist Capital supports businesses whose activities enable positive climate impact across one of three themes – (i) the decarbonization of power supply, (ii) the electrification of transportation, and (iii) the decarbonization of industrials and circular economy. The Firm has a dual mandate to achieve excellent risk-adjusted returns while scaling solutions which are beneficial to the climate. Idealist Capital underwrites its carbon impact and integrates critical non-financial KPIs in its asset management process to build sustainable platforms. To learn more about Idealist Capital, visit Idealist.Capital.

SOURCE XNRGY Climate Systems ULC