The loan is issued as two non-overlapping equally large tranches of EUR 250,000. Payment of the first tranche will take place immediately and it shall be repaid on August 31, 2019 at the latest. The second tranche of the loan matures on December 31, 2019, when it shall be repaid. After the due date, 14% annual interest is paid.
In connection with the project financing, Loudspring receives the right to profit-sharing based on the return from Enersize's Chinese projects, representing 20% of the proceeds up to a maximum of 100% of the loan amount (EUR 250 000). Dividend distribution is also limited to a maximum of 5 years. Reimbursement of previous project loans is a priority prior to payment of profit sharing.
Anders Sjögren, CEO of Enersize, comments:
"With this project loan, we can continue to drive the Chinese projects in a good way against return, while we can invest fully in the European market, where we see a large pent-up need and opportunity for rapidly increasing sales and cash flow thanks to the customer contacts and the sales history we have gained through the acquisition of LEAQS. LEAQS has developed completely in line with expectations and together with the two and a half-year growth financing from Formue Nord, we now have a clear and clear and long-term financing plan for the company regarding expansion in Europe and China, at the same time as we can pursue ongoing projects in China."
Lassi Noponen, CEO of Loudspring, comments:
”Enersize's new management have impressed us with the swift establishment of European activities and the extension of the business model through the acquisition of LEAQS. We see a value potential in ensuring that the company has resources to run both European new sales activities and at the same time create return on investments from the started Chinese projects, which is why we have chosen to approve this project financing.”