In current markets, securing funding for breaking-even companies is not easy. Companies are pressed to issue equity at draconian terms. Linkfire just announced it secured EURO 5 million in debt funding from Mr Kuok Meng Ru, founder of BandLab, who is also LInkfire’s 4th largest shareholder. A very great achievement in current markets is a rubber stamp on the project from a major industry player.
Linkfire announcement:
Linkfire A/S secures debt financing of DKK 37.3 million (approx. EUR 5 million) on an improved interest basis to strengthen cash preparedness
Linkfire A/S (“Linkfire” or the “Company”) announces that it has secured debt financing of DKK 37.3 million from Kuok Meng Ru, a shareholder of Linkfire and Group CEO & Founder of Caldecott Music Group (“CMG”), as an expression of his commitment to and belief in the Company’s potential.
The terms of the financing agreement are similar to the terms previously announced (see the corporate announcement from 9 May 2023), whereas the financing is structured as a drawdown facility and carries a reduced annual interest rate of 17 per cent compared to 18 per cent previously, accruing on each draw of the facility and paid quarterly. The board assesses the interest level to reflect current market terms.
The facility has a duration of 2.5 years. It is repayable in whole or in part in the interim in case of future equity or debt raises during the term of the loan.
The loan will be deployed to repay part of Linkfire’s existing loans under the previously announced credit facility, contribute to financing the Company’s operations until cash flow break-even expected in 2024, and allow Linkfire to continue various avenues in its pursuit of maximizing shareholder value. The expected net proceeds from the loan is approximately DKK 20 million and will be utilized for the Company’s operations.
The debt financing is a testament to Kuok Meng Ru’s continued belief in the Company’s potential and unique market position.
Linkfire is reporting tomorrow before the open
Linkfire hosts a Q3/2023 interim report webcast on November 23, 2023
Linkfire (NASDAQ: LINKFI.ST) will publish its interim report for the third quarter on Thursday, November 23, 2023, at approximately 7.30 AM CEST. A webcast for investors and media will take place at 10.00 AM CEST on the same day.
The report is presented by Lars Ettrup, Co-founder and CEO, and Tobias Demuth, CFO. The presentation for the webcast can be downloaded on https://investors.linkfire.com/ 30 minutes before the webcast starts. A recording of the event will be available on the same website later the same day.
In addition to the Q&A at the end of the webcast, participants also have the possibility to preregister questions via email to investors@linkfire.com. The Q&A session is moderated through a chat function, which will be available via the webcast link below.
Please register for the webcast using this link: https://lnk.to/Q3-23
After registration, you will receive a link to access the webcast via e-mail.
What to expect from the Q3 report
Last year, Linkfire announced that 2023 is the first year the company will be EBITDA positive. Tomorrow’s Q3 report might be the first EBITDA positive quarter. If that is achieved, it would be a major milestone in Linkfire’s history.
We are long LInkfire.
Disclosure:
The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.
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