April 20, 2024

Renewcell Secures SEK 100 Million In Short-Term Financing

Renewcell AB has successfully addressed its short-term liquidity needs through strategic financial arrangements. The company secured two short-term loans totaling SEK 100 million from major shareholders, H&M Fashion AB and Girincubator AB, as well as existing lenders BNP Paribas, European Investment Bank (EIB), Nordea Bank Abp, and AB Svensk Exportkredit. Of the total amount, SEK 50 million is provided by shareholders as a short-term loan, while the remaining SEK 50 million comes from existing lenders. This injection of funds aims to handle immediate liquidity requirements with the ongoing strategic review prioritizing long-term financing solutions expected in Q1 2024.

The strategic review was initiated in November 2023 due to lower-than-anticipated sales volumes. The financial arrangements will manage the current slowdown in sales within the textile value chain, providing ample liquidity for the next few months. However, the company emphasizes that this is not a long-term solution. The strategic review remains ongoing, focusing on securing long-term funding in early 2024, potentially through equity injections like rights issues or other strategic transactions.

Simultaneously, Renewcell intensified discussions with customers along the textile value chain, leading to a non-binding term sheet with H&M Group. The term sheet outlines H&M Group’s intention to increase its usage of fibres containing CIRCULOSE, pending negotiations.

Details of the financial arrangements include an increase in the revolving credit facility with BNP Paribas, Nordea and AB Svensk Exportkredit, extensions to maturity dates and certain waivers. Furthermore, existing secured credit facilities with EIB, Nordea, AB Svensk Exportkredit, and Finnvera have seen the release of funds and waivers on amortizations.

The company’s next steps involve the continuation of the strategic review to secure long-term funding amid uncertainties in sales ramp-up and supply chain dynamics. Renewcell is advised by ABG Sundal Collier and legally represented by Advokatfirman Vinge during this process.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *