Enedo Plc Stock Exchange Release May 20, 2022, at 09:45
Enedo signs a shareholder bridge loan agreement totaling 1.95 MEUR and plans to arrange an EGM to decide on a share issue
As released in the Q1 Business review the inventory levels have been increasing because of the global component shortage and the strong customer order intake and the cash position has thereby remained constrained. Enedo is executing actions to decrease the level of inventories and thereby release the cash from inventories and working capital.
Enedo has signed a shareholder bridge loan agreement in the amount of Eur 1 950 000 including a convertible component in the total amount of EUR 650 000 to the Lenders. The due date of the loan is 30th of September 2022 and the conversion right of Eur 0,10 per share can only be used if the loan is not repaid at due date.
The shareholders granting the bridge loan are the three biggest shareholders Inission AB, Joensuun Kauppa ja Kone Oy and Rausanne Oy. The loan will be mainly used for working capital purposes and overdue payables to secure the continuation of the company’s operations.
Enedo has also started planning to organize an extraordinary shareholder’s meeting to arrange a share issue to further increase the liquidity and the equity of the company. The rights offering will be used to pay back the bridge loan and to strengthen the equity and cash of the company.
Enedo signed a new loan of EUR 5,0 million at the end of December 2021 and the loan was fully raised by the end of March 2022. The EUR 5,0 million loan arrangement has a maturity date of 30th September 2022. The company aims to either agree to prolong the maturity date, negotiate a new loan with another financing institution or to raise sufficient equity financing to repay parts of the loan. The company is currently evaluating the alternatives.
For further information please contact Mr. Mikael Fryklund, CEO, tel. +358 40 500 6864.
Nasdaq Helsinki Ltd
Enedo is a European designer and producer of high-quality electronic power supplies and systems for critical equipment even in the most demanding environments. Enedo´s mission is to make electricity better – more reliable, more secure, more energy efficient – and just right to fit its purpose. Enedo´s three main product categories are Led Drivers, Power supplies and Power Systems. In 2021 the group´s revenue was EUR 36,4 million. Enedo has 330 employees, and its main functions are located in Finland, Italy, Tunisia and USA. The group´s head office is in Finland and parent company Enedo Oyj is listed on Nasdaq Helsinki Oy.