Leclanché signs a CHF 20 million facility for medium term growth financing.
Leclanché S.A, which specializes in the production of large-format lithium ion cells and delivery of energy storage solutions for utilities, industrial and residential clients, has announced that ACE & Company in Switzerland has agreed to acquire the currently outstanding convertible loans under the Loan Agreement with Recharge A/S of 8 December 2014 and to extend an additional CHF 10 million facility thereunder (the "Facility"). In addition, ACE has agreed to raise an additional CHF10 million on a best efforts basis.
The Facility matures on June 30, 2017, carries an annual nominal interest rate of eight per cent and is convertible into new shares of the Company. It further provides that upon completion of a qualified financing round mandatory conversion occurs. The conversion price is the lower of (i) CHF 2.86, (ii) 85 percent of the 15-days volumeweighted average price of the shares, or (iii) the subscription price in any future rights offering.
Recharge A/S will remain a syndicate lender under the Loan Agreement.
Commenting on the successful closing of this financing, Adam Said, founder and Managing Director of ACE & Company, said: "Leclanché is transforming the market with its energy storage solutions. Subsequent to our participation to the private placement in December 2015, we are very confident on the Company's ability to emerge to be a world leader in battery energy storage solutions".
Anil Srivastava, CEO of Leclanché, commented: "The increased commitment from ACE & Company, at a premium to the current market price, is a strong vote of confidence in the Company ability to execute its growth plan. As previously announced, it is the goal of the Company double its revenue and to reduce its loss by a further 50 percent in the financial year 2016. This funding is vital to deliver IESO Ontario project which will help the Company achieve its objectives."
"On behalf of the Company, I wish to thank Recharge A/S for their valuable investment and support at a crucial time for the Company. Their strategic commitment enabled not only to financially stabilise the Company, it also helped us to win world leading projects."
Scott Macaw, Board member of the Company and Director of Recharge A/S highlights: "Leclanché has achieved a step change since December 2014. We are fully supportive of the management team and thankful for the transformative change performed in such a short amount of time. We remain a committed key shareholder of the Company as we continue to work strategically with the Company on infrastructure projects development and funding".
