EQS Group-Ad-hoc: Leclanché SA / Key word(s): AGMEGM
Leclanché concludes its Annual General Meeting
Significant debt to equity conversion strengthens the balance sheet
EBITDA loss trend reversed and revenues at a 22-year high in 2018
Major projects in operation in the Stationary Solutions business and solid pipeline of orders in the e-Transport business provide critical scale and put the Company on track towards profitability
Bénédict Fontanet and Lluís Fargas join the Board of Directors
YVERDON LES BAINS, Switzerland, May 9, 2019: Leclanché SA (SIX: LECN), one of the world's leading energy storage solutions companies, today announced that the Company's shareholders approved all but one of the proposals of the Board of Directors at its 2019 Annual General Meeting (EGM) held today in Yverdon-les-Bains.
The debt to equity conversion of CHF 36 million of debt contracted with FEFAM, the Company's main shareholder, was approved by shareholders. This restructuring measure shall reduce the Company's debt level to CHF 10.5 million. The strengthened balance sheet shall drive increased investment interest in the Company at this time of strong growth in Leclanché's order book in the fast-growing e-Transport sector.
The Board regrets that the resolution to reduce the nominal value of the shares from CHF 1.50 to CHF 0.10 was not approved by the majority of shareholders. The Board will review the options to restructure the balance sheet as a matter of priority.
The Board is pleased to announce that Bénédict FONTANET and Lluís M. FARGAS have been elected to the Board of Directors.
Mr. Fontanet is the chairman of the board of directors of Golden Partner SA in Geneva - an investment advisor to FEFAM, the Company's main shareholder - and was introduced to the Board of Directors by Golden Partner. A former President of the Geneva Christian Democratic Party and former Member of the Grand Council, Mr. Fontanet is a lawyer and director of several companies and brings his vast experience to Leclanché.
Mr. Fargas joined Alcoa Inc. in 1994, after five years spent as Senior Manager at Coopers & Lybrand in Barcelona, Spain. Since November 2016, Mr. Fargas has held the role of Vice President Tax, Controller and Corporate Development Europe at Arconic, which retained the rolling, plating, precision casting and fastening operations of Alcoa Inc. Mr. Fargas manages the European Tax and Country Controllership function, and is responsible for running the corporate development strategy of Arconic in Europe. Mr. Fargas is a visiting Professor at the University of Lausanne - UNIL Switzerland, and he frequently lectures at international seminars and workshops. Mr. Fargas will bring his vast finance, tax and merger & acquisition experience to Leclanché, as well as his strong network across the aerospace, automotive and banking industries.
With the constant and steady support of all shareholders, in particular FEFAM, its major shareholder who converted CHF 71 million into capital, Leclanché has been able to meet its growth targets while reversing the EBITDA loss trend.
Stationary Solutions: in operation throughout the world
Towards critical scale and profit
On the costs side, thanks to the strong order book in the e-Transport business, the cell production facility will reach near-full capacity utilization by the end of 2019. This will reduce the scrap rate significantly, which will enable the Company to reach profitable production levels.
Expected revenues should reach CHF 55 million to CHF 60 million, representing 13% to 23% annual growth. We will update our guidance in September as the final 2019 revenues depend on the delivery and implementation schedule of a key Solar PV + Storage project in the Caribbean, which is currently in final negotiations.
Anil Srivastava, CEO of Leclanché, said: "In 2018, Leclanché has turned the corner with a steady increase in revenue and firm orders that further strengthen the growth of the Company's business. Our continued success in e-Marine, and the Company's selection by world leading bus, truck and rail manufacturers, are a testament to Leclanché's strategy to focus its technology and products towards fleet vehicles and to be a leading contributor to a more efficient and greener energy world. I am grateful to our shareholders for their continued support and strong commitment to fulfilling this pioneering strategy."
 FEFAM means: AM INVESTMENT SCA, SICAV-SIF - Liquid Assets Sub-Fund, together with FINEXIS EQUITY FUND - Renewable Energy Sub-Fund, FINEXIS EQUITY FUND - Multi Asset Strategy Sub-Fund, FINEXIS EQUITY FUND - E Money Strategies Sub-Fund (also called Energy Storage Invest) and, all these funds being in aggregate the main shareholder of Leclanché, hereunder referred to as "FEFAM".
End of ad hoc announcement
|Av. des Sports 42|
|Phone:||+41 (24) 424 65-00|
|Fax:||+41 (24) 424 65-20|
|Listed:||SIX Swiss Exchange|
|EQS News ID:||809593|
|End of Announcement||EQS Group News Service|
809593 09-May-2019 CET/CEST