Nanologica AB has signed a credit line of up to MSEK 50 with the company’s main owner Flerie Invest AB. The aim is to cover the company’s temporary financial needs pending expected cash flows from the preparative chromatography business, to meet the requirement of going concern for the next twelve months.
This loan financing is a flexible way to meet the company’s short-term capital needs pending expected cash flows from the preparative chromatography business. The credit line has been agreed on market terms and amounts to a maximum of MSEK 50 over 3 years at a cost of 1 percent and with an interest rate of 8 percent for loans taken within the credit line. In connection to signing the credit line, a loan of MSEK 10 within the same has been taken.
The signing of this agreement is subject to subsequent approval by an Extraordinary General Meeting, as the transaction is to be regarded as a material related party transaction. The company intends to hold an Extraordinary General Meeting on February 7, to which notice will be sent out no later than two weeks before.
The company continuously evaluates possible financing options to ensure long-term financing. Depending on how fast growth is gaining momentum in chromatography, but mainly on which projects the company decides to pursue in inhalation, additional funding may be needed.
”Securing working capital through a loan financing is assessed to be the most favorable for the company at the stage we are at right now – where we are approaching sales growth and cash flows from preparative chromatography – and taking into account the company’s current market valuation. Over time, we see an advantage in increasing the share of institutional ownership in the company and we therefore continue to engage in dialogue with both Swedish and international institutions and similar actors. Operationally, the company is now fully focused on delivering on the goals we have set, as well as relisting the company to Nasdaq Main Market.”, Nanologica’s CEO Andreas Bhagwani comments.
The loan of SEK 17 million from Flerie Invest AB that was taken in autumn of 2019 and spring of 2020 and which expires in July 2022, has been extended until July 1st, 2023.
For further information, please contact:
Johanna Johansson, IR, Communications and Marketing Manager
Ph: +46 72 211 21 90 or e-mail: email@example.com
About Nanologica AB (publ)
Nanologica manufactures, develops, and sells nanoporous silica particles for applications within life science. Nanologica is world-leading in controlling the shape, size, porosity, and surface properties of silica particles, creating opportunities to develop unique products. Through the two business areas, Drug Development and Chromatography, the company strives towards increasing the accessibility for innovative treatments and medicines in healthcare, for the benefit of patients around the world. In Drug Development, Nanologica provides a unique drug delivery platform for local delivery of drugs to the lung with the aim of providing new treatment options for patients with lung diseases. In Chromatography, the company aims to make insulin available to more patients in need, by lowering the cost of manufacturing. Nanologica is headquartered in Södertälje and the company’s share (NICA) is listed on Spotlight Stock Market. For further information, please visit www.nanologica.com.
This information in this press release is information Nanologica AB is obliged to make public pursuant to the Market Abuse Regulation issued by the EU. The information was submitted for publication through the agency of the contact person above on January 19, 2022.
(This is a translation of the original press release that was issued in Swedsih.)