STOCKHOLM, Sweden — Hexicon AB (publ) announces that the Company has entered into an amendment agreement to its existing development loan facility with Nuveen Infrastructure. The amendment introduces a new tranche, Tranche F, of up to EUR 2.67 million. Of Tranche F, EUR 0.67 million will be funded through back-leverage financing provided by certain Back Lenders, including some of Hexicon's largest shareholders, one of which is related to the Chairman of the Board. The Back Lenders will also, subject to approval by an Extraordinary General Meeting in Hexicon AB, have the right to convert their respective portion of the EUR 0.67 million financing into ordinary shares in Hexicon AB at a conversion price of SEK 0.25 per share with an additional warrant of SEK 0.25 per share at conversion date.
Tranche F represents a further extension of the development loan facility originally entered into on 30 May 2023 and subsequently amended on several occasions. The new tranche is incorporated into the facility through a Deed of Amendment and Restatement. Following the amendment, the aggregate amount under all tranches of the facility amounts to up to EUR 52.42 million.
Tranche F is intended to finance corporate overhead and the continued development of Hexicon's priority projects.
The terms and conditions of Tranche F are generally aligned with the structure and commercial terms of the existing facility. The capital under Tranche F will be made available in tranches and is at the discretion of the lender. Tranche F has a maturity date of 31 December 2027.
As part of the financing arrangement, the Back Lenders will, subject to approval by an Extraordinary General Meeting in Hexicon AB, have the right to convert their respective portion of the EUR 0.67 million financing into ordinary shares in Hexicon AB at a conversion price of SEK 0.25 per share. In addition to the conversion, a warrant will be issued for each share converted. The warrants will have a strike price of SEK 0.25 per share. The Board of Directors intends to convene an Extraordinary General Meeting to seek the necessary shareholder approval. Further information regarding the proposed conversion right, including the terms of the conversion and the Extraordinary General Meeting, will be provided in the notice to the meeting.
Hexicon’s CEO Marcus Thor comments:
“The additional financing provides Hexicon with further funding to continue the development of our priority projects and represents an important step in our ongoing financing activities. Our immediate focus is on advancing MunmuBaram ahead of the upcoming Korean offtake auction. With the key permits and grid connection required for participation in place, we are focused on positioning the project for the auction and its next stage of development.”