Enersize receives project financing from Loudspring

Enersize Oyj (”Enersize”) has received project financing of EUR 250,000 from the major owner Loudspring Oyj (“Loudspring”), as a part of Loudspring’s growth financing program from NEFCO (Nordic Environmental Finance Corporation). The project financing is meant to establish scope for the continued development of Enersize's Chinese projects in connection with the major investment in the European market that Enersize initiated in connection with the acquisition of LEAQS during Q4 2018.

The loan is issued as two non-overlapping equally large tranches of EUR 250,000. Payment of the first tranche will take place immediately and it shall be repaid on August 31, 2019 at the latest. The second tranche of the loan matures on December 31, 2019, when it shall be repaid. After the due date, 14% annual interest is paid.

In connection with the project financing, Loudspring receives the right to profit-sharing based on the return from Enersize's Chinese projects, representing 20% of the proceeds up to a maximum of 100% of the loan amount (EUR 250 000). Dividend distribution is also limited to a maximum of 5 years. Reimbursement of previous project loans is a priority prior to payment of profit sharing.

Anders Sjögren, CEO of Enersize, comments: 

"With this project loan, we can continue to drive the Chinese projects in a good way against return, while we can invest fully in the European market, where we see a large pent-up need and opportunity for rapidly increasing sales and cash flow thanks to the customer contacts and the sales history we have gained through the acquisition of LEAQS. LEAQS has developed completely in line with expectations and together with the two and a half-year growth financing from Formue Nord, we now have a clear and clear and long-term financing plan for the company regarding expansion in Europe and China, at the same time as we can pursue ongoing projects in China."

Lassi Noponen, CEO of Loudspring, comments: 

”Enersize's new management have impressed us with the swift establishment of European activities and the extension of the business model through the acquisition of LEAQS. We see a value potential in ensuring that the company has resources to run both European new sales activities and at the same time create return on investments from the started Chinese projects, which is why we have chosen to approve this project financing.”

Certified Advisor 

Sedermera Fondkommission

Telephone: +46(0)40-615 14 10

E-mail: ca@sedermera.se

For more information about Enersize, please contact: 

Anders Sjögren, CEO

Telephone: +46(0)730-763530

E-mail: anders.sjogren@enersize.com

This information is information that Enersize Oyj is obliged to publish in accordance with the EU Market Abuse Regulation. The information was provided by the contact person above for publication on February 22th, 2019.

Brief information about Enersize 

With its proprietary patent-pending automated software for leakage management, data collection and analysis, Enersize can provide 10-50% energy savings in industrial compressed air systems. Through the recently acquired LEAQS system, the company has access to more than 9000 leakage management projects, and the associated more than 4000 customers worldwide. The combination of the company’s software services can increase the customer’s savings in running projects, while generating direct license and project revenue. 90% of the manufacturing industry uses compressed air, which constitutes about 5% of the world's total electricity consumption. Among Enersize's existing customers are one of the world's largest manufacturers of flat screens and well-known car manufacturers and steel mills. The company is headquartered in Helsinki, have a sales office in Gothenburg and a development office in Lund. The company is listed on Nasdaq Stockholm First North under the ticker: ENERS. www.enersize.com