Leclanché receives CHF 20 million investment
Leclanché SA, a prominant energy storage solution company, has announced 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, 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.
