Veg of Lund AB obtains bridge facility of up to MSEK 16 to strengthen the company’s market position and product development, and issues warrants
Summary
With this loan, Veg of Lund has secured an intermediate financing of a maximum of MSEK 16 before transactions costs from five investors, three of whom are shareholders in the Company. In addition, the Board of Directors has resolved to issue 300,000 warrants free of charge to some of the lenders.The bridge facility enables financing of, among other things, the Companys marketing, sales organization and product development. The interest rate has been set to 10 percent per annum and the loans fall due for payment after 12 months from entering the agreements. Conversion shall be made at a subscription price per share which corresponds to a 20 percent discount compared to a volume weighted average price for the Companys share during a certain period before the conversion.Terms for the warrants In connection with the financing, the Board of Directors has, by virtue of the authorization granted by the annual general meeting on 11 May 2022, resolved to issue 300,000 warrants to the three shareholders. Veg of Lund can call for a maximum of one tranche per month and the possibility to use the loan commitment runs until 30 November 2022.