Azure Dynamics Corporation has closed the previously announced equity investment of US$5m by a strategic investor, which is a wholly-owned Canadian subsidiary of Johnson Controls.

The Johnson Controls’ Canadian subsidiary – which remains unnamed – acquired on a private placement basis 30,796,969 common shares of Azure, at a price of CS$0.165 per common share, for gross proceeds to Azure of CS$5,081,500 (US$4.99m).

As a result of the equity investment, Johnson Controls, through its Canadian subsidiary, now holds around 7.2% of the issued and outstanding common shares of Azure.

The company has also entered into an agreement with Johnson Controls providing for certain amendments to, and an expansion of, Johnson Controls’ existing supplier relationship with the company.

Azure plans to use the net proceeds of the equity investment to fund its ongoing product development as well as general corporate and working capital requirements.