Hexicon AB ("the Company" or "Hexicon") has entered into an agreement for a credit facility of up to SEK 75 million, which can be utilized as needed, with disbursements of SEK 10 million at a time. The main financier is Wallstreet Aktiebolag, a company within the Wallenius Group, along with a few private investors ("the Credit Facility"). The Credit Facility is intended to cover Hexicon's working capital needs and enable the Company to divest projects at the best possible time and terms. With the facility the Company's liquidity is secured the coming year up until the summer 2024.
The Credit Facility will primarily be used to strengthen the Company's working capital and enable Hexicon to continue developing its project portfolio. In May 2023, Hexicon entered into a long-term financing agreement of up to EUR 45 million with Glennmont Partners, one of Europe's largest infrastructure-focused fund managers for clean energy investments, to finance the Company's project portfolio. Together, these two complementary financing agreements enhance Hexicon's opportunities to execute its growth strategy and divestment plan. Together, these two complementary financing agreements strengthen Hexicon's opportunities to realize the company's growth potential as well as values in the company's project portfolio.
"We are pleased to have secured financing that allows us to remain flexible in terms of the timing of project divestments, thereby optimizing the value creation in our portfolio. With this credit facility, we can ensure that we have liquidity in the Company to cover non-project-related expenses, and together with the Glennmont agreement, we can continue to accelerate our efforts to achieve our growth objectives", commented Marcus Thor, CEO of Hexicon.
The Credit Facility
The total amount of the Credit Facility is SEK 75 million, with over half of the financing provided by Wallstreet Aktiebolag and the remaining portion by a number of private investors. Hexicon has the option to utilize the credit within a twelve-month period, with a minimum withdrawal of SEK 10 million. Until the Company's outstanding convertible loans are fully repaid, a maximum of SEK 10 million of the Credit Facility can be utilized.
The credit facility is concluded at market terms. Repayment of the loan, along with accrued interest, is due no later than July 12, 2024. Hexicon has the option to make early repayments of the utilized credit, in whole or in part, at any time and subsequently terminate the Credit Facility.
As security for the Credit Facility, Hexicon, through its wholly-owned subsidiary Freia Offshore AB ("Freia Offshore"), has pledged all Swedish patents owned by Freia Offshore, including all related rights, to the lenders.
Pareto Securities has acted as the financial advisor in the transaction, and Setterwalls Advokatbyrå has acted as legal advisor.