Linkfire A/S (“Linkfire” or the "Company") announces that it has secured a debt facility of up to DKK 22.5 million from Egor Romanyuk, managing partner of Maverick Capital Limited (“Maverick”). The Company therefore waives the second tranche of the previously announced directed share issue to Maverick, and thus Tranche 2 will not result in any further shareholder dilution, which has been a priority to the Company.
On 21 October 2022, Linkfire resolved to carry out a directed share issue to Maverick, ICS Investment Management LLC, and Kuok Meng Ru, Group CEO & Founder of Caldecott Music Group of 110,913,930 shares at a determined subscription price of DKK 0.4057 (approximately SEK 0.60) per share (the “Share Issue”). The proceeds of the Share Issue amounted to DKK 45 million securing the Company’s path to breakeven in 2023. The Share Issue is divided into two tranches of equal size, where Linkfire has the right to waive the second tranche if the Company is able to obtain financing at more favorable terms. Linkfire closed the first tranche on 12 December 2022 and has since then been working to clarify whether or not it would be possible to raise the second tranche on better terms.
Today, Linkfire announces that it has secured a debt facility from Egor Romanyuk, managing partner of Maverick, of up to DKK 22.5 million (equal to approximately SEK 34 million) with a monthly interest rate of 1.5 percent accruing on each draw of the facility, which the Company considers more attractive than a draw of Tranche 2. As a result, the Company waives the second tranche of the Share Issue. This financing results from a diligent process exploring both equity and debt options, and the Company is convinced that the best possible deal has been obtained.
The facility has a duration of 5 years. It is repayable in whole or in part in the interim in case of future equity or debt raises during the term of the loan.
Copenhagen, 9 May 2023
Board of Directors of Linkfire
For further information, please contact:
Tobias Demuth, CFO
Telephone: +45 27 84 44 68