Alelion Energy Systems AB (“Alelion” or “the Company”) has received short term shareholder loans of 50 MSEK (“Bridge Loans”) from majority shareholders Fouriertransform AB, Pegroco AB and Sammaj AB (“the Majority Shareholders”}. Today Alelion’s board also publish summons to an extraordinary general meeting on 2 April 2019. It is proposed that the general meeting decide to authorize the board amongst other things to make an equity issuance of shares for at most 135 MSEK (“the Equity Issuance”).
Liquidity from the Equity Issuance will be used to strengthen the Company’s balance sheet, make investments to improve the Company’s efficiency and competitiveness and for repayment or refinancing of debenture loans.
The Majority Shareholders have undertaken to subscribe for their pro rata shares equivalent to 65.2 per cent of the Equity Issuance.
• As a step towards strengthening Alelion’s funds in the short term, the Majority Shareholders have decided to award Bridge Loans to Alelion of in total 50 MSEK.
• The Bridge Loans will be disbursed during the month of February at an interest rate of 10 per cent.
• The board today publish summons to an extraordinary general meeting to be held on 2 April 2019. It is proposed that the general meeting decide to make amendments to the articles of association regarding the number of shares and share capital and to authorize the board to make a new issuance of shares within the framework for the articles of association with preference for the Company’s shareholders.
• The board intend to use the authorization to decide on an equity issuance of up to 135 MSEK.
• Provided that the extraordinary general meeting authorize the board and that the board take the decision to make the Equity Issuance, the Majority Shareholders have undertaken to subscribe their respective pro rata shares of the proposed Equity Issuance. These subscription agreements amount in total to at most 88.1 MSEK, equivalent to 65.2 per cent of the Equity Issuance.
• The Bridge Loans from the Majority Shareholders will be fully offset against new shares in connection with the Equity Issuance subscribed in accordance with the subscription agreements in the point above. The Majority Shareholders’ Bridge Loans are not fully equivalent to their subscription agreements and the Company must therefore receive additional liquidity from the Majority Shareholders through the issuance.
• The Majority Shareholders whose total holdings are equivalent to around 65.2 per cent of the number of shares and votes in the Company have undertaken to vote for the proposal for issuance authorization and amendments to the articles of association.
• The subscription period for the Equity Issuance is expected to run during the month of April or May 2019.
The Bridge Loans
The bridge loans will be disbursed during the month of February at an interest rate of 10 per cent. The sums borrowed from the respective Majority Shareholders amount to 33.9, 14.1 and 2.0 MSEK from Fouriertransform AB, Pegroco AB and Sammaj AB respectively. The intention is to allow the Bridge Loans to be repaid as offset in the Equity Issuance or by 31 December 2019 at the latest.
Background and reasons
Alelion is a leading supplier of industrial energy storage systems based on lithium-ion technology. A battery with lithium-ion is more energy efficient, lighter, lasts longer and also contributes to considerably lower environmental impact.
The work with implementing the measures communicated in the end report is underway. The intention is to improve the general efficiency and competitiveness of the Company. The current savings program initiated at the close of 2018 is also underway and is anticipated to bring results successively throughout the year. The Company must furthermore complete current investments in order to achieve sufficiently large-scale production. The Issuance is to be made so as to continue investing and thereby create scale advantages and expand operations both geographically and to new final customer segments.
At present measures are being taken in the industrial truck segment to strengthen business with customers and to lower product costs. The Company’s new product platform and the current change from cells to more cost effective alternatives demand engineering work as well as investments, for instance in the form of certifications and controlling and streamlining. These measures are expected to start showing results from the close of the second quarter 2019.
The Company is also preparing for the future. Investments are being made in Green Energy Partner (AIES) where the AIES software must be adapted for industrial customers. The Company also intends to start operating in new segments in the course of the year and this is expected to first show results in the second half of 2019. New products are planned for serial manufacture towards the end of the year and this will also demand active purchasing and engineering to increase profitability for the these products. This work is underway.
The Company intends in the first instance to use the issuance liquidity to repay the raised debenture loan along with interest of 52.7 MSEK, in the second instance to make investments in AIES and the industrial truck segment of 25-35 MSEK, and in the third instance to refinance loans and in addition strengthen the Company’s balance sheet. Depending on how the Company’s capital requirement appears after the extraordinary general meeting on 2 April 2019 the board may decide on an Equity Issuance at a lower, but not a higher, amount than 135 MSEK.
Extraordinary general meeting
The board today summon to an extraordinary general meeting to take the decision authorizing the board to decide a new share issuance and amendments to the articles of association regarding changing the limits on the number of shares and share capital. The extraordinary general meeting will be held 2 April 2019 in Gothenburg.
Subscription agreements and voting commitments
Providing the extraordinary general meeting authorizes the board and that the board decide to make the Equity Issuance, the Majority Shareholders have undertaken to subscribe their pro rata shares to the equivalent of at most 88.1 MSEK or 65.2 per cent of the Equity Issuance.
The Company’s Majority Shareholders, whose total holdings are equivalent to around 65.2 per cent of the number of shares and votes in Alelion, have undertaken to vote for the proposal for equity issuance authorization and amendments to the articles of association.
Carnegie Investment Bank acts as financial advisor and Roschier is legal advisor in connection with the Equity Issuance.
For more information, please contact:
Alelion Energy Systems AB
+46 707-51 67 10
The information in this press release contains insider information that Alelion Energy Systems AB (publ) publishes in accordance with the EU market abuse regulation. The information was provided for publication under the responsibility of the above contact person on 18 February 2019 at 17:30 CET.
About Alelion Energy Systems AB (publ)
Alelion Energy Systems AB is a leading supplier of industrial energy storage systems based on lithium-ion technology. A battery with lithium-ion is more energy efficient, lighter, lasts longer and also contributes to a considerably lower environmental impact.
In step with the growth of climate threat and the urgent need to convert to more sustainable energy systems and more sustainable use of energy, an increasing number of sectors have begun to explore the possibilities offered by lithium-ion technology and this is opening up new markets and segments for Alelion. Through the development of smart software based control systems new business opportunities have evolved linked to lithium-ion technology in the area of energy management where Alelion offers solutions.
Alelion has built the first factory in Sweden for large-scale production of lithium-ion batteries for industrial trucks. This factory is located in the centre of the vehicle cluster on the island of Hisingen in Gothenburg and was completed at the start of 2019. Read more at www.alelion.com
Alelion’s biggest shareholders are Pegroco Invest and Fouriertransform. The company's share (ALELIO) is traded on Nasdaq First North Stockholm with G&W Fondkomission as Certified Advisor, e-mail: firstname.lastname@example.org, telephone: +46 8-503 000 50.