STENOCARE financing need has been completed as planned incl solution for refinancing of debt
STENOCARE A/S
NASDAQ FIRST NORTH GROWTH MARKET, DENMARK
TICKER: STENO
This information is information that STENOCARE A/S is obliged to publish in accordance with the EU Market Abuse Regulation. The information was provided by the contact person below for publication on January 12, 2024.
Refinancing of loans: Stenocare has reached a refinancing agreement (partial repayment, renegotiation and/or prolongation) covering all existing debt of 8.2 mDKK. As a result, total debt remaining on the balance sheet will be reduced to 5.4 mDKK with none of that balance being due for repayment before 1 January 2025. As announced, an extra ordinary general meeting (EGM) will be held on February 05, 2024 to update the authorization needed to complete the refinancing. The three founders have pledged to vote in favor of the authorization.
Background to the financing transactions, target 1: On 4 December 2023, Stenocare announced an updated guidance for working capital needs ahead of the anticipated break-even in 2024. The need for new working capital was estimated to only approx. 3 mDKK. This need was covered by the combined results of the TO1 warrant and a directed issue (total of 7.2mdkk in additional funding):
- Result of the directed issues: The December 2023 announcements relating to the Directed Issues secured approximately 4.2 mDKK from HHTM ApS, a new anchor investor as detailed in the announcement on December 19, 2023 in combination with an additional 0.2 mDKK from the founders, on the same terms and as announced on the same date, totaling around 4.4 mDKK.
- Result of the TO1 warrant exercise: As announced on 21 December 2023, the TO1 warrant exercise resulted in gross proceeds of 2.8 mDKK corresponding to a healthy subscription rate of 76.7%.
Background to the financing transactions, target 2: In addition, the Company confirmed its intention to refinance its existing debt of approx. 8.2 mDKK, which remained after the successful “Unit Right Issue” and loan conversion totaling 15 mDKK in the summer of 2023. This refinancing has now also been covered by today’s announcement.
Financing need secured: As a result of these transactions, Stenocare has now secured the entire anticipated funding and refinancing requirements until break-even which is anticipated by the end of 2024. The still remaining funding event (TO2 warrant exercise, due in June 24) can now be reserved for growth initiatives and further strengthening of the balance sheet.
Stenocare CEO, Thomas Skovlund Schnegelsberg comments: “These days, securing of funding for microcap companies can be a daunting task. This is why we are tremendously pleased that our anticipated financing needs have been covered. This rounds off a truly exciting 2023 which was marked by significant growth (about 100% growth in revenue YoY) as well as a stronger than ever (current) pipeline of further growth triggers for 2024 including a) the long awaited 3rd licensed product in Denmark, b) ramp up of sales in more of our markets, c) introduction of our potentially disruptive new bioavailability technology as well as d) first sales from our own world-class cultivation facility. All this is pointing to our anticipated sales growth of +100% and break-even at the end of 2024. Allow me to extend the warmest thanks and greetings to all stakeholders in Stenocare.
Company advisers: Keswick Global AG has acted as the Company’s Certified Adviser. Gemstone Capital A/S has acted as the Company’s financial adviser. Lund Elmer Sandager has acted as the Company’s legal adviser. Danske Bank has acted as settlement agent and issuing agent.