EQS Group-Ad-hoc: Leclanché SA / Key word(s): Financing/Agreement
Leclanché Secures Convertible Loan Facility of up to CHF 39 Million with Yorkville Advisors and additional Convertible Loan Facility of CHF 25 Million with FEFAM
- Initial CHF 2.9 million tranche under the Convertible Loan Facility with Yorkville Advisors will provide financing for operations and expansion;
- Company confirms separate investment of CHF 25 million by FEFAM, its largest shareholder.
The terms of the agreement with Yorkville Advisors allows it to convert each loan note into Leclanché shares based on the prevailing Investor's Spot Rate of Exchange at the time of conversion and divided by the prevailing share price at time of conversion. The agreement calls for the drawdowns of the facility within a two-year period. The first tranche of the loan facility is CHF 2.9 million which has already been expended. Additional drawdowns are expected to be in the amount of CHF 1.4 million or an amount determined by both Leclanché and Yorkville Advisors. Any such additional drawdowns by the Company are conditional upon, amongst other, prior loans having been converted into shares and the shares having been traded out by Yorkville Advisors at its sole discretion as well as certain share price and trading volume thresholds being met prior to any additional request for drawdown. Loans drawn down do not carry interest, but trigger certain fees and the allocation of certain warrants to Yorkville Advisors with an initial exercise price of 120% of the closing price on the day prior to the date on which a loan is made. Accordingly, the warrants provide a means of compensation in a scenario in which the share price increases considerably.
Anil Srivastava, CEO of Leclanché, said: "We are pleased to partner with Yorkville Advisors in this innovative financing arrangement that achieves several key objectives and supports the Company's previously announced growth plan. Not only are we securing important short-term financing to fund current operations and growth activities, but we are also taking on a financial partner with tremendous expertise in helping to build liquidity for companies' listed shares. Our agreement provides built-in incentives for all parties to benefit handsomely from this transaction."
David Gonzalez, Partner and General Counsel for Yorkville Advisors, said: "We are delighted to team-up with Leclanché to help it address its financing needs. What Leclanché has accomplished as a world leader in energy storage is impressive. We believe in the company's going-forward business strategy and we recognize its tremendous long-term growth potential. At the same time, we understand very well the financial issues that growth companies like Leclanché face as a small cap company with challenging liquidity issues. We believe that the convertible loan facility that we have arranged for the company will enable both parties to achieve their intended ROIs."
Mr. Srivastava said: "This additional funding now in place will support the implementation of our high-growth business plan and, together with the other financing projects the Company is working on, will help finance the tripling of our manufacturing cell production capacity in Germany to 3 million cells per annum to support delivery of the large order book we have in Leclanché's eTransport Business. We expect to share more details of the business plan and funding in the coming weeks."
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SIX Swiss Exchange: ticker symbol LECN | ISIN CH 011 030 311 9
About Yorkville Advisors
The Yorkville Advisors' partners have decades of experience structuring micro and small-cap investments and understand and appreciate the volatility inherent to the space. The firm tailors its investments to the unique needs of each issuer working directly with management to implement the proper financing solution. Since its inception in 2001, Yorkville Advisors has completed over 700 company investments totalling more than $US 4B in value in over 20 countries.
 FEFAM means: AM INVESTMENT SCA, SICAV-SIF - Illiquid 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".
Document title: Leclanché Secures Convertible Loan Facility of up to CHF 39 Million with Yorkville Advisors and additional Convertible Loan Facility of CHF 25 Million with 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:||977413|
|End of Announcement||EQS Group News Service|
977413 18-Feb-2020 CET/CEST