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Last close As at 07/06/2023
-0.96
— 0.00 (0.00%)
Market capitalisation
288m
Research: Industrials
Leclanché has announced an agreement with US-based investment company Yorkville Advisors for a convertible loan facility of up to US$40m (c CHF39m). FEFAM, Leclanché’s majority holder and long-term backer, has also agreed to provide a CHF25m working capital financing convertible facility. Our estimates remain under review until there is greater visibility regarding the St Kitts battery energy storage project.
Leclanché |
Convertible loan from Yorkville Advisors |
Financing update |
Renewable energy |
19 February 2020 |
Share price performance Business description
Analyst
Leclanché is a research client of Edison Investment Research Limited |
Leclanché has announced an agreement with US-based investment company Yorkville Advisors for a convertible loan facility of up to US$40m (c CHF39m). FEFAM, Leclanché’s majority holder and long-term backer, has also agreed to provide a CHF25m working capital financing convertible facility. Our estimates remain under review until there is greater visibility regarding the St Kitts battery energy storage project.
Year end |
Revenue (CHFm) |
EBITDA |
PBT* |
EPS* |
DPS |
P/E |
12/17 |
18.0 |
(31.1) |
(37.8) |
(0.68) |
0.0 |
N/A |
12/18 |
48.7 |
(36.9) |
(47.8) |
(0.62) |
0.0 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The agreement with Yorkville requires each loan tranche to be converted into shares and traded out before the next tranche is provided, increasing share liquidity. Drawdowns are also conditional on trading volumes and the share price and must take place within two years. Conversion is based on the prevailing share price at the time of conversion. The first tranche, of CHF2.9m, has been released. Further tranches are expected to be CHF1.4m each. There is no interest payable on the loans drawn down, but fees will be triggered on drawdowns and each share is accompanied by 1.2 warrants. The new facility with FEFAM carries 8% interest on loans and does not include warrants. The cash will be used for financing working capital over the next 12 months as Leclanché works on maritime orders from Kongsberg and Damen, and to support capacity expansion in Germany.
The announcement is encouraging because Yorkville is the first new major investor in the company for several years. This is indicative of investor interest in the electric vehicle industry generally as the transportation industry seeks to reduce carbon emissions, and more specifically in Leclanché. The group’s partnership with Bombardier Transportation, which is potentially worth more than €100m over the next five years, and numerous marine projects including the world’s largest all-electric ferry, demonstrate its ability to serve these niche markets.
At the current share price, we estimate that the two convertibles represent up to 88.6m new shares. (This calculation excludes any potential dilution from convertible debt provided for working capital in FY19).
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Research: TMT
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