Leclanché receives CHF 20 million investment commitment from the recently announced acquisition and JV facility of CHF 50 million
- CHF 20 million investment approved by FEFAM to set up a Joint Venture in India
- Leclanché terminates non-binding agreement with potential investor disclosed on 5 June
YVERDON LES BAINS, Switzerland, 25 June 2018: Leclanché SA (SIX: LECN), one of the world’s leading energy storage solution companies, today announces that FEFAM1, Leclanché’s largest shareholder, has approved an investment of up to CHF 20 million to set up a Joint Venture in India from the funding facility to finance acquisitions and joint ventures, as announced on 5 June.
FEFAM has confirmed its existing plans to further convert CHF 24 million of its debt into equity in order to help strengthen the balance sheet of the Company, subject to the approval by the Swiss Takeover Board and completion of the due process of capital increase. This follows FEFAM’s share capital increase of CHF 16.5 million announced on 6 June. The conversion into equity is in line with the Company’s objective to continue to attract equity-based growth capital.
Further, Leclanché’s Board has decided to terminate the non-binding term sheet with a potential strategic investor, which was announced on 5 June, as parties could not reach an agreement on terms and conditions of the funding and the timeline of the funding.
Jim Atack, Chairman of the Company, said: “The Board has reviewed the recent significant positive funding arrangements with FEFAM. These arrangements include an investment of CHF 75 million, announced on 5 June, an agreement to convert a large of part of its debt into equity subject to the Swiss Takeover Board’s approval, and lastly, the approval of an investment in a potential joint venture in India, which we look forward to updating the market about in due course.
As an outcome of this review, coupled with significant operational improvements in the Company well underway, the Company will continue to seek potential strategic investors to increase its overall corporate funding to between CHF 100 million and CHF 125 million.”
As previously stated, the Company is on track to be EBITDA positive by 2020.
The opportunity for Leclanché is now. We have a strong order book and pipeline and we have never been in a better position to meet the needs of the disruptors and incumbents, who are changing the way that we produce, distribute and consume electricity and how we transport people and products, as we move towards a clean energy future.
Headquartered in Switzerland, Leclanché SA is a leading provider of high quality energy storage solutions designed to accelerate our progress towards a clean energy future.
Leclanché’s history and heritage is rooted in over 100 years of battery and energy storage innovation and the Company is a trusted provider of energy storage solutions globally. This coupled with the Company’s culture of German engineering and Swiss precision and quality, continues to make Leclanché the partner of choice for both disruptors, established companies and governments who are pioneering positive changes in how energy is produced, distributed and consumed around the world.
The energy transition is being driven primarily by changes in the management of our electricity networks and the electrification of transport, and these two end markets form the backbone of our strategy and business model. Leclanché is at the heart of the convergence of the electrification of transport and the changes in the distribution network. Leclanché is the only listed pure play energy storage company in the world, organised along three business units: stationary storage solutions, etransport solutions and specialty batteries systems. Leclanché is listed on the Swiss Stock Exchange (SIX: LECN).
SIX Swiss Exchange: ticker symbol LECN | ISIN CH 011 030 311 9
This press release contains certain forward-looking statements relating to Leclanché's business, which can be identified by terminology such as "strategic", "proposes", "to introduce", "will", "planned", "expected", "commitment", "expects", "set", "preparing", "plans", "estimates", "aims", "would", "potential", "awaiting", "estimated", "proposal", or similar expressions, or by expressed or implied discussions regarding the ramp up of Leclanché's production capacity, potential applications for existing products, or regarding potential future revenues from any such products, or potential future sales or earnings of Leclanché or any of its business units.
You should not place undue reliance on these statements. Such forward-looking statements reflect the current views of Leclanché regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no guarantee that Leclanché's products will achieve any particular revenue levels. Nor can there be any guarantee that Leclanché, or any of the business units, will achieve any particular financial results.
1FEFAM means: AM INVESTMENT SCA, SICAV-SIF - Liquid Assets Sub-Fund, together with FINEXIS EQUITY FUND - Renewable Energy Sub-Fund, FINEXIS EQUITY FUND - Multi Asset Strategy Sub-Fund, FINEXIS EQUITY FUND - E Money Strategies Sub-Fund (also called Energy Storage Invest) and, all these funds being in aggregate the main shareholder of Leclanché, hereunder referred to as “FEFAM”.
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