Componenta Corporation enters into a share subscription facility with Global Corporate Finance for USD 8 million

Componenta Corporation, Insider information, 21 June 2021 at 3.55 p.m. EEST

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Componenta Corporation ("Componenta" or the "Company"), has today entered into a share subscription facility with Global Corporate Finance LLC (“GCF”), New York, NY, USA, for providing funding of up to USD 8,000,000 to the Company over a three-year period. The share subscription facility is structured as a share purchase agreement with GCF with the total commitment of GCF being USD 8,000,000 and allowing the Company solely at its request to raise additional equity. The Company can issue new shares to GCF in deviation of the shareholders subscription rights in multiple tranches of up to USD 1,000,000 per tranche. The subscription price per share in each tranche shall be equal to ninety-four percent (94%) of the Company’s average daily volume weighted share price during five (5) consecutive trading days following the date when the Company issues a drawdown request for that tranche. The Company shall in addition pay a commitment fee of 2 percent (2%) based on the aggregate value of the share subscription facility and a fixed facilitation fee of USD 45,000.

Board of Directors of Componenta has the authorisation by AGM to decide on share issues in accordance with the proposal by the Board of Directors. The issuance of shares may be carried out by offering new shares or by transferring treasury shares held by the company. The number of shares to be issued or transferred under the authorisation may not exceed 940,000 shares, which corresponds to approximately 9.9% of all shares in the company.

President and CEO Sami Sivuranta: “The share subscription facility of USD 8 million provided by GCF is a flexible tool to help support the financing of Componenta Corporation in its part during the next three years allowing Company to focus on the implementation of its growth and profitability improvement targets. Additionally, during the current year Componenta’s liquidity has remained at a good level and it still has undrawn committed credit facilities of EUR 4.0 million.”

Randy Rivera, Managing Director of GCF: "We are pleased for an opportunity to invest in Componenta as it continues to partner and provide world class components to its customers."

Global Corporate Finance (GCF) is a private family office, located in New York City, focusing on micro and mid cap companies. GCF has made investments in listed companies in the US, Canada and Europe.

Borenius Attorneys Ltd. acts as legal counsel to the Company.

COMPONENTA CORPORATION

Sami Sivuranta
President and CEO

For further information, please contact:
Sami Sivuranta, President and CEO, tel. +358 10 403 2200
Marko Karppinen, CFO, tel. +358 10 403 2101

Componenta is an international technology company with operations located in Finland. With its wide technology portfolio, Componenta produces e.g. cast, machined and unmachined components for its clients who are local and global manufacturers of vehicles, machines and equipment. The company’s share is listed on Nasdaq Helsinki.

IMPORTANT NOTICE

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