NoHo Partners: EUR 10m convertible bond converted into new shares - Nordea

On Friday 13 May, NoHo Partners announced that the management and domestic investors have acquired the majority of the EUR 10m convertible capital loan granted to the company by Finnish Industry investment and converted their purchase into new shares in the company. The company repaid the remaining portion of the loan principal and interest, approximately one sixth, to Tesi using its cash assets. The company’s equity is strengthening and its net debt decreases by more than EUR 10m following the transactions. Subscription price of shares was EUR 8.03 and the company will issue a total of 1.27m new shares. We view conversion positively as it will increase low equity ratio. In Q1, equity ratio was 14.4% and we calculate around 17% equity ratio after subscriptions. In addition, arrangement releases future cash flow to growth investments, although we believe the company will concentrate on lowering its net debt level in 2022. We have a fair value range of EUR 10.0-12.4 per NoHo share

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