EFORE PLC Stock Exchange Release September 30, 2016 at 2 p.m.
Efore has rearranged its financing
Efore has concluded its financing negotiations. In connection with the arrangement, the company has agreed upon financing amounting to EUR 6.8 million. Jussi Capital Oy, which belongs to the related parties of the Company, has issued an absolute guarantee for part of the loan. The guarantee arrangement has been made on market equivalent terms. These financing arrangements and Efore’s transactions in China concerning outsourcing of manufacturing and manufacturing support functions will give Efore good opportunities to execute necessary actions that will enable a positive operating result in year 2017.
As a counter guarantee for the absolute guarantee granted by Jussi Capital Oy, the Board of Directors of Efore has also today resolved to pledge 3,501,995 own shares of the company in accordance with the authorization granted by the Annual General Meeting of Shareholders on 30 March 2016. The pledge of own shares has an especially significant financial reason in the interest of the company and for all the shareholders, as the pledge is a prerequisite for the new financing arrangements.
Simultaneously, Efore has received a waiver from the financier regarding the covenant breach that was disclosed in the half year financial report published on 10 August 2016.
EFORE PLC
Jorma Wiitakorpi
President and CEO
For further information please contact Mr. Jorma Wiitakorpi, President and CEO, on September 30, 2016 at 3 -4 pm., tel. +358 40 175 8510
DISTRIBUTION
Nasdaq Helsinki Oy
Principal media
Efore Group is an international company which develops and produces demanding power products. Efore's head office is based in Finland and its R&D functions are located in Finland, Sweden, Italy and China. Sales and marketing operations are located in Europe, United States and China. In the fiscal year ending in December 2015, consolidated net sales totalled EUR 89,9 million and the Group's personnel averaged 887. The company's share is quoted on the Nasdaq Helsinki Ltd.www.efore.com