Enedo signs a shareholder bridge loan for a total amount of 1.95 MEUR and plans to organize an EGM to decide on a share issue
Press release from the Enedo Plc stock exchange on May 20, 2022 at 09:45
Frewave a shareholder bridging loan agreement totaling 1.95 MEUR and plans to organize an EGM to decide on a share issue
As noted in the Q1 business review, inventory levels increased due to global component shortages and strong customer order intake, and the cash position therefore remained limited. Enedo executes actions to reduce the level of inventory and thus release cash from inventory and working capital.
Enedo has signed a shareholder bridge loan agreement for an amount of EUR 1,950,000 including a convertible component for a total amount of EUR 650,000 to the Lenders. The maturity date of the loan is 30e September 2022 and the conversion right of 0.10 euro per share can only be used if the loan is not repaid on the due date.
The shareholders granting the bridge loan are the three main shareholders of Inission AB, Joensuun Kauppa ja Kone Oy and Rausanne Oy. The loan will mainly be used for working capital and overdue payments to guarantee the continuation of the activities of the company. .
Enedo has also started to plan the organization of an extraordinary general meeting of shareholders to organize a share issue in order to further increase the company’s liquidity and equity. The rights offering will be used to repay the bridge loan and strengthen the company’s equity and cash flow.
Enedo signed a new loan of EUR 5.0 million at the end of December 2021 and the loan was fully raised at the end of March 2022. The loan of EUR 5.0 million has a maturity date of 30e September 2022. The company aims to either agree to extend the maturity date, negotiate a new loan with another financing institution, or raise enough equity to repay part of the loan. The company is currently evaluating alternatives.
For more information, please contact Mr. Mikael Fryklund, CEO, tel. +358 40 500 6864.
Nasdaq Helsinki Ltd
Enedo is a European designer and producer of high quality electronic power supplies and systems for critical equipment, even in the most demanding environments. Enedo’s mission is to make electricity better – more reliable, safer, more energy efficient – and just to serve its purpose. Enedo’s three main product categories are LED Drivers, Power Supplies and Power Systems. In 2021, the group’s turnover was 36.4 million euros. Enedo has 330 employees and its main functions are located in Finland, Italy, Tunisia and the United States. The group’s head office is in Finland and the parent company Enedo Oyj is listed on Nasdaq Helsinki Oy.