Valoe Corporation Inside Information 6 May 2020 at 09.47 Finnish time
VALOE HAS AGREED ON AN EUR 2.5 MILLION FINANCIAL FACILITY WITH NEFCO. THE FUNDING WILL BE USED FOR VALOE’S CELL PLANT INVESTMENT IN LITHUANIA. VALOE AIMS TO ARRANGE ANOTHER SHARE ISSUE IN JUNE 2020.
The Board of Directors of Valoe Corporation (“Company”) has on 5 May 2020 agreed on an EUR 2.5 million financing facility with Nordic Environment Finance Corporation (NEFCO).
Valoe will use the funding granted by NEFCO to complete the Company’s IBC solar cell investment in Lithuania and to scale up the annual production capacity of the cell plant from about 60 MW to about 120 MW. This also enables the payment of the remaining purchase price of the solar cell production business of JCS SoliTek R&D ("Solitek") between Valoe and Global BOD Group SIA ("BOD").
The financing facility comprises an investment of EUR 1.25 million done by NEFCO in the Company’s equity and a loan of EUR 1.25 million granted by NEFCO to the Company. The loan period is six years and the loan shall be repaid in equal instalments. The maturity date of the loan is in August 2026 and there shall be no payments during the first eighteen months after the date of the Loan Agreement.
The investment in the equity will be done simultaneously so that NEFCO subscribes a total of 23,148,148 new shares in the Company at a subscription price of EUR 0.054 per share in the share issue disclosed by the Company on 6 May 2020 (the “Offering”).
The arrangement is subject to the Savisalo Family and the companies under their control subscribing new shares of a minimum amount of EUR 1.25 million in the Offering by setting-off against indisputable receivables the subscribers have at the end of the financial year 31 December 2019 from the Company. In addition, one or more new investors should subscribe for new shares of the Company in the Offering for a total subscription price of at least EUR 100,000. The Company has received a subscription for this from Global BOD Group SIA.
The shares to be subscribed for in the Offering are subject to lock-up undertaking valid until 5 May 2021.
The Company has also issued a commitment and an undertaking to ensure, by all reasonable means available to it, that a new share issue, in which the Company shall offer up to 18,518,518 new shares in the Company under the same terms as in the Offering, is carried out on the basis of the share issue authorization proposed by the Board of Directors in the Notice to the Company’s annual general meeting to be held on 28 May 2020. The Savisalo's family and the companies under their control have committed to vote at the Company's Annual General Meeting to be held on 28 May 2020 for the Board's proposal regarding the share issue authorization included in the notice to the meeting.
Iikka Savisalo, Valoe’s CEO says “The financing facility from NEFCO to Valoe will allow the IBC cell plant investment in Lithuania to be completed and the production capacity at the plant to be ramped up. Production at the solar cell plant will begin in summer 2020 provided the Covid-19 pandemic does not cause unexpected delays. We are delighted with the cooperation with NEFCO. Negotiations and arrangements to promote the production of clean solar energy have gone smoothly and quickly.”
The investment is part of NEFCO's green growth strategy, which aims to promote the introduction and growth of Nordic environmental technologies in international markets.
“Solar power has a key role in the transition to a greener economy. This investment is well suited to our portfolio since it contains next-generation, modular solar cells which can be adapted for various purposes. We expect that Valoe’s technology will not only boost the cost effectiveness of producing clean energy but also enable a variety of innovative applications,” says Dennis Hamro-Drotz, Investment Manager at NEFCO.
NEFCO is an international financial institution established in 1990 by the five Nordic countries – Denmark, Finland, Iceland, Norway, and Sweden. NEFCO facilitates, in the private and public sectors, investments related to green growth and climate mitigation and adaptation globally, with a particular focus on Eastern Europe, as well as the Baltic Sea, Arctic, and Barents regions.
In Mikkeli on 6 May 2020
Valoe Corporation
BOARD OF DIRECTORS
For more information:
CEO Iikka Savisalo, Valoe Corporation
p. 0405216082
email: iikka.savisalo@valoe.com
Distribution:
Nasdaq Helsinki Oy
Main media
www.valoe.com
Valoe Corporation specializes in the clean energy, especially in photovoltaic solutions. Valoe 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. Valoe's head office is located in Mikkeli, Finland.