Lithium-ion energy storage manufacturer Leclanché has secured new finance from ACE & Company in Switzerland as it looks to double its revenue.
ACE will obtain the currently outstanding convertible loans under a loan agreement with Recharge A/S, as well as extend an additional CHF10 million (US$10.1 million) facility.
In addition, ACE agreed to generate an added CHF10 million on a best-effort basis.
The facility matures on 3 June 2017, boasts an annual nominal interest rate of 8% and is convertible into new shares of Leclanché. Recharge A/S will stand as a syndicate lender under the loan agreement.
Anil Srivastava, CEO of Leclanché: “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 to double its revenue and to reduce its loss by a further 50% in the financial year 2016. This funding is vital to deliver the 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 Page 2/2 commitment enabled not only to financially stabilise the company, it also helped us to win world leading projects.”
Scott Macaw, director of Recharge A/S, added: “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.”