Sivers Semi expands loan facility
€4.5 million loan to provide funding for continued growth
Sivers Semiconductors has agreed to entered into a loan agreement with Formue Nord and partners extending the previous €6.7 million (SEK 75 million) facility.
The new €4.5 million (SEK 50 million) loan facility includes a €3.1 million (SEK 35 million) convertible loan at a fixed conversion rate of 4.86 SEK, corresponding to 125 percent of the closing price for the company’s ordinary shares on Nasdaq Stockholm on 8 March 2023.
The company anticipates this financing, and its own cash flow will fully address funding for at least 2024, without the need for any further capital contributions from shareholders. Borrowings under the old and the new loan facility are due for repayment at the maturity date on 30 May 2025 .
“With this new loan facility, we have now secured our funding base, providing us with the resources needed to meet market demands. This funding, combined with last year's 80 percent YOY sales growth and reaching profitability in adjusted EBITDA for the second half of 2023, puts us on a great trajectory for continued expansion in 2024 and beyond,” said Anders Storm, group CEO of Sivers Semiconductors.
The directed convertible issue is a prerequisite for obtaining the loan facility. Sivers says the issue is also positive for the company's capital structure. The board has made the assessment that an issue of convertibles with preferential rights for shareholders would have been significantly more time-consuming to implement and would have increased exposure to market risk compared to a directed issue of convertibles.
In light of the above, the board has made the assessment that the directed convertible issue with deviation from the shareholders' preferential right was the most advantageous alternative for Sivers Semiconductors and in the interests of the shareholders.
