Core Viewpoint - SCHMID Group N.V. has entered into an investment agreement to issue $30.0 million in senior convertible notes and warrants to an institutional investor, aimed at strengthening its financial position and supporting growth strategies [1][9][10] Investment Agreement Details - The investment agreement involves the issuance of senior convertible notes at 98% of principal amount, funded in two tranches of $15.0 million each [2] - The notes carry a 7% annual interest rate, compounded quarterly, with a maturity of two years, maturing on January 21, 2028, unless converted into shares [3] - The notes are convertible at the investor's option into shares at a price based on a fixed premium conversion price, with a minimum conversion price and daily conversion limits [4] Warrants and Registration Rights - Alongside the notes, the company will issue warrants to purchase shares, exercisable until December 15, 2028, at a price determined by the fixed premium conversion prices [5] - A registration rights agreement will be established, obligating the company to file a registration statement for the resale of shares from the notes and warrants [6] Financial Implications - The net proceeds from the notes will be allocated for general corporate purposes, including working capital, capital expenditures, and potential acquisitions [8] - The company will not utilize a previously announced €10 million convertible loan facility due to the more favorable terms of the new investment agreement [13] Company Background - SCHMID Group is a global leader in providing solutions for high-tech electronics, photovoltaics, glass, and energy systems, with over 800 employees and operations in multiple countries [21]
SCHMID Group N.V. announces a USD 30 million convertible notes financing