LED iBond International has successfully reached agreements for DKK 10 million in new funding to continue its growth strategy
COMPANY ANNOUNCEMENT NO. 81
Inside information
LED iBond International is pleased to announce the successful completion of agreement for DKK 10 million in new capital from both existing and new investors, hereby funding the growth journey expectedly well into 2025. DKK 4.5 million will come from issuing of new shares while DKK 5.5 million will be issued as a convertible loan paid out in steps during 2024 conditional to certain milestone delivery.
The raise of DKK 4.5 million will in December 2023 be completed by issuing 12,857,141 new shares at a price of DKK 0.35 per share. The new shares are issued to 3 existing shareholders as well as 3 new investors.
As part of the process of raising the new funding, the terms of LED iBond's current loans with EIFO (Vækstfonden) of total 7.9 million have been renegotiated with reduced interest rates and part (5.4M) being converted to a subordinated and convertible loan, and its amortisation being postponed until after 2026. This will strengthen LED iBond's cash flow.
Martin Løbel comments: “I’m delighted that our existing shareholders has increased their investment in LED iBond and I also welcome all new investors. I strongly believe that true growth in sales will materialise in 2024 after we successfully have improved our operation and reduced burn rate significantly the last 18 months, and that we at the same time have developed some attractive solutions for parking facilities and have managed to develop a new toplighting HORTISABER lamp for the greenhouse segment. I’m confident that we in 2024 will start to see increased sales as we prove our solutions and value to our customers with a stronger product portfolio.
I’m pleased to see both current and new investors sharing my confidence, and I see all investors as strategically important investors for LED iBond in our process of developing the company. The capital raise will strengthen our cash position so we can focus on continued growth, sales, product development and international sales expansion, and among others by hiring a Sales Director (CSO) with focus on growth and sales expansion.”
The new shares will be issued without subscription right for existing shareholders and according to the mandate given to the Board of Directors at the AGM on 24 April 2023 and which is reflected in LED iBond’s articles of association, which can be found at the company’s website.
The capital raise of DKK 4.5 million will increase LED iBond’s equity and cash position with the same amount.
The convertible loan of 5.5 million and its terms is conditioned the board obtaining mandate from an extra ordinary General meeting. A notice for such extra ordinary meeting will be published shortly.
About LED iBond International A/S
Founded in 2014, LED iBond International offers innovative lighting solutions, based on years of development and deep knowledge of modern LED technology combined with advanced packaging and assembly technology. Our patented technology platform includes a very thin formfactor of only 6 mm for the light panels, offering a unique value proposition based on high design flexibility, robustness, IoT integration, and low total costs of ownership due to market leading energy efficiency and superior cooling properties. The technology platform also reduces the installation cost due to a modular design with a limited need for traditional electrical wiring.
LED iBond’s technology has been installed in many projects, ranging from intelligent shelf lighting to numerous large scale illumination projects such as various parking facilities and as the indoor installation of 3.2 kilometres of TRACY®, the company’s innovative flagship product, at the Technical University of Denmark. LED iBond’s has also developed software-based advanced light management systems for control of lighting solutions.
LED iBond is focusing on three key business lines: Smart Building (Industry & Home), Indoor and Vertical Farming, and UV Disinfection, all projected to show significant growth in the years to come. For Indoor and Vertical Farming segments, LED iBond’s roadmap includes lighting solutions which incorporate advanced IT management with monitoring using sensors, cameras, and plant analysis.
Manufacturing takes place in Denmark in LED iBond’s own production facility with highly automated assembly lines.
LED iBond International A/S is admitted to trading on Nasdaq First North Growth Market Denmark (ticker: LEDIBOND).