Cencorp Corporation Stock Exchange Relase 17 March 2015 at 16.20 Finnish time
THE ESTIMATED REALIZATION OF CENCORP’S FINANCING NEGOTIATIONS AND THE FIRST MANUFACTURING PARTNERSHIP AGREEMENT WILL BE POSTPONED TO THE SECOND QUARTER – THE COMPANY’S FINANCING SITUATION CONTINUES TO BE VERY TIGHT
Cencorp has previously estimated that the company’s long-term financing arrangement will be secured during the first quarter of 2015, and that the schedule of the long-term financing negotiations will be highly depended on whether the company succeeds to sign its first manufacturing partnership agreement on solar module manufacturing technology during the first quarter of 2015. Further, Cencorp has previously stated that should the signing of the first manufacturing partnership agreement be delayed the long-term financing arrangement will be delayed too and the company will have to seek for bridge financing, and it is not yet secured that the company succeeds in securing bridge financing by the end of the first quarter.
It is still possible to sign the first manufacturing partnership agreement and to get a relating order by the end of the first quarter, but the company views that it is no longer probable that the company is able to secure project financing for an order in this schedule. Thus the company postpones the targeted schedule for signing of the first manufacturing partnership agreement and the long-term financing negotiations from the end of the first quarter of 2015 to the second quarter. Negotiations for manufacturing partnership agreements, deliveries of production lines, strategic deliveries of solar modules and long-term financing arrangement continue as usual and the company continues focusing on finding an overall solution as soon as possible.
Cencorp’s financing situation continues to be very tight. Very significant risks are involved in sufficiency of Cencorp’s working capital for the next twelve months. Cencorp’s management views that the company requires bridging financing until long-term financing arrangement has been secured and the cash flow from the business operations of the company has turned positive. The company is also having ongoing negotiations for arranging bridging financing. The company continues to have a significant deficit in its working capital until the first delivery of production technology for solar modules will start to generate positive cash flow. If the company does not succeed to secure sufficient short-term and long-term financing, the continuity of the company’s operation may be jeopardized.
In Mikkeli, 17 March 2015
Cencorp Corporation
Board of Directors
For more information:
Iikka Savisalo
President and CEO
Cencorp Oyj
Tel. +358 40 521 6082,
Email: iikka.savisalo@cencorp.com
Distribution:
NASDAQ OMX, Helsinki
Main media
www.cencorp.com
Cencorp Corporation specializes in the clean energy, especially in photovoltaic solutions. Cencorp provides automated production technology for solar modules based on the company’s own technology; production lines for modules; solar modules and special components for solar modules. Cencorp's head office is located in Mikkeli, Finland. The company is part of the Finnish Savcor Group.