Saab secures 25 Million € from Gemini

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Saab Automobile has secured short-term liquidity with a convertible loan of 25 million €. The bond at Gemini bears interest at 10% per annum. The term of the bond goes over 6 months. The credit is redeemed at the latest when the entry of Pang Da and Youngman is completed.

Salaries are now being paid, with the convertible bond, the real estate sale and the order worth 13 million, Saab 66 has raised € million in liquidity. The hope is that the EIB will be able to call up the next loan installment via 29,1 million. And you want to start production again.

The Saab press release:

Trollhattan, Sweden: Swedish Automobile NV (SWAN) announces that it has entered into a EUR 25 million convertible bridge loan agreement with Gemini Investment Fund Limited (Gemini), furthering additional short-term funding.

SWAN entered into a EUR 25 million convertible bridge loan agreement with Gemini with a 6 months maturity. The interest rate of the loan is 10% per annum and the conversion price is EUR 1.38 per share (the volume weighted average price over the past 10 trading days). SWAN may at any time during the loan's term redeem it without penalty and it intends to do so once the funding from Pang Da and Youngman is received, in which case no dilution as a result of this bridge loan will occur.

Upon receipt of Gemini's EUR 25 million and upon reaching agreements with its suppliers on payment terms, Saab Automobile hopes to complete its scheduled loan drawdown of EUR 29.1 million from the European Investment Bank (EIB).

As a result of this convertible bridge loan (EUR 25 million), the sale of the real estate (EUR 28 million) and the sale of a Chinese buyer (EUR 13 million), Saab Automobile (conditionally) secured EUR 66 million in additional funding this week. 2 weeks, subject to the receipt of these funds, takes place as scheduled, Saab Automobile expects to have the sufficient time to complete the production process.

Victor Muller, CEO of Swedish Automobile and chairman of Saab Automobile said: “I am relieved to report that we made the June salary payments this afternoon from the proceeds of the sale of cars we announced last Monday. We again extend our sincerest apologies to our employees for the hardship the late payment has caused to them. We have clearly gone through a very rough patch in the past few weeks and hopefully we can now reach agreement with our suppliers so as to ensure a resumption of our production in a controlled way. Our mid and long-term funding is secured by the Pang Da / Youngman agreements which are still subject to obtaining certain governmental approvals. Assuming these approvals are obtained, the Gemini bridge loan will be repaid in full. ”

Source: Saab Automobile