Hexicon has successfully concluded negotiations with lenders to extend its revolving credit facility by a further 24 months.
The SEK 75m RCF had been due to mature at the end of June but will now continue until 30 June 2027 under updated terms with a monthly paid-in-kind interest of 1.38% and additional fees.
Up 158 million warrants will be issued with a strike price of SEK 0.40 per share and a maturity of 36 months, subject to approval at an EGM.
The Swedish developer has also entered into a memorandum of understanding with Wallstreet Aktiebolag to convert approximately SEK 28m worth of outstanding loans into an equity stake in the IP company Freia Offshore AB, which holds the patents of Hexicon Group.
Hexicon, which reported a loss before tax of SEK 41m in the second quarter of this year, said the loan amount corresponded to 50% of the loan it holds with Wallstreet as part of the overall credit facility and would “further strengthen the industry partnership between the two parties”.
An additional loan commitment of up to €4.75m has also been secured from Nuveen Infrastructure as part of the previously established financing agreement that will be made available in tranches to fund corporate overheads and continued development of priority floating wind schemes, subject to project related milestones.
Hexicon CEO Marcus Thor (pictured) has agreed to provide a subordinated non-interest-bearing loan of €20,000 to Hexicon that will be repayable at a multiple of five or ten times if repayment of the Nuveen loan reaches certain thresholds.
He said: “These agreements mark an important milestone for Hexicon. By securing financing and strengthening our industrial partnerships, we can now focus fully on our core business.
“We are pleased with the continued trust from our lenders and partners, and I am confident that these steps will enable us to accelerate our strategy and create long-term value for our shareholders.”