Veg of Lund obtain loans of MSEK 1.75 from Board members and existing shareholder with conversion rights
Veg of Lund AB (publ) (“Veg of Lund” or the “Company”) has today entered into an agreement with Board members and an existing shareholder regarding the raising of loans totaling MSEK 1.75. The terms provide a conversion right for the lenders whereby repayment can be made with the Company's shares. The loans are raised in order to strengthen the Company’s working capital.
Background
Veg of Lund has today, on 26 January 2024, raised loans of MSEK 1.75. The Company has entered into loan agreements with Board members and the existing shareholder Svarta Tornet Invest AB (the “Lenders”). The loans are raised in order to strengthen the Company’s working capital.
Terms of the loans
The loans amount to a total of MSEK 1.75. The loans carry a monthly interest rate of 1.5 percent and fall due for payment on 31 October 2024. Veg of Lund has the right to repay the loans plus interest in cash in advance.
Each lender may request the Company to repay the loan plus interest with shares. Such conversion shall take place through a directed set-off issue of shares. The subscription price per share upon conversion has been set at SEK 1.15, representing a premium of 16.40 percent to the closing price of the Company's shares on Nasdaq First North Growth Market on 25 January 2024, which was the last trading day prior to this press release. The subscription price upon conversion is deemed to be on market terms.
In the event that the Company carries out issues during the term of the loans, the Lenders have the right to set-off their claims in such issues. The Lenders also have a contractual right to act as underwriters on market terms in issues of shares carried out by the Company during the term of the loans.
Veg of Lund has also undertaken not to raise new loans or credits during the term of the loans without the consent of the Lenders, unless loans are raised to repay the Lenders’ loans in full.
For more information, please contact:
Veg of Lund AB
Helene Nielsen, CEO
Telephone: +46 732 22 76 35
E-mail: helene.nielsen@vegoflund.se
About Veg of Lund AB (publ)
Veg of Lund should be the natural choice for all actors in the transition to plant-based foods. The company’s business concept is to use its own patented methods, innovative solutions and know-how to develop and sell products that the market demands. Changes are required for the food industry to reach its set climate goals. The company is contributing by its investment in plant-based foods with a low climate footprint, raw materials that are easily grown and available, and health benefits for the end consumer. The company and its well-established partners in priority markets and channels provide the conditions to grow in a global market, valued at USD 100 billion. The share is listed on Nasdaq First North and is traded under the name VOLAB. Read more at ir.vegoflund.se. Mangold Fondkommission AB is the company’s Certified Adviser and can be contacted by phone: +46 8 5030 15 50 or e-mail: ca@mangold.se.
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