December 31, 2021
Smart Wires Technology Ltd (“Smart Wires” or the “Company”) is pleased to announce that a debt financing agreement (the “Financing Agreement”) has been signed between the Company’s subsidiary Smart Wires Inc as the Borrower and an affiliate of Innovatus Capital Partners, LLC (“Innovatus”) as Lender, granting Smart Wires access to a debt facility of up to USD 50 million (the “Term Loan”). The Term Loan may be used to fund ongoing operations and working capital expenses and for costs, fees and expenses incurred in connection with the Financing Agreement.
The Term Loan includes two tranches. The first tranche consists of USD 30.0 million and is expected to be drawn down on December 31, 2021 (the “Closing Date“). The second tranche consists of USD 20.0 million and will be drawn at the Company’s election between April 1, 2023, and September 30, 2023, following satisfaction of certain conditions precedent, including a funding milestone of a trailing six months revenue of USD 40.0 million.
Prior to the fourth anniversary of the Closing Date, Innovatus will have the right to convert up to 10% of the outstanding principal of the Term Loan into common stock in the Company at a price per share equal to SEK 45, adjusted for the USD/SEK exchange rate at the time of the conversion.
Key terms of the Term Loan:
Peter G. Wells, CEO
Tel: +1 (510) 340-9797
This information is information that Smart Wires Technology Ltd is obliged to make public pursuant to the EU Market Abuse Regulation. The information in this press release has been made public through the agency of the responsible person set out above for publication at the time stated via the Company’s news distributor Cision at the publication of this press release.
ABOUT INNOVATUS CAPITAL PARTNERS, LLC
Innovatus Capital Partners, LLC, is an independent adviser and portfolio management firm with approximately $1.5B in assets under management. Innovatus adheres to an investment strategy that identifies disruptive and growth opportunities across multiple asset categories with a unifying theme of capital preservation, income generation, and upside optionality. Further information can be found at www.innovatuscp.com.