Company Announcement 14 December 2016 at 2.30 p.m. (CET)
The bank Suur-Savon Osuuspankki has extended the validity period of its bank guarantee limit granted to Savo-Solar Plc by 12 months, up and until 30 November 2017. The limit amounts to EUR 2 million and the company uses it in large projects for guarantees needed during deliveries and the warrant period, among others. The extension of the limit's validity period is conditional upon Finnvera Plc granting a counter guarantee to the bank on behalf of the company and the company giving an additional collateral to the bank. Finnvera has already made a positive decision regarding the guarantee.
The most important covenants of the bank guarantee limit are an equity ratio of at least 30% (currently 71.7% as per 30 November 2016) including the subordinated debt and a positive operating margin (EBITDA) during the last quarter of the year 2017. Should the covenants not be met, the bank has the right to adjust the terms of the bank's financing or cancel the financing.
The financial position of Savo-Solar has improved as a result of the successful rights issue and directed share issue carried out during the autumn 2016, when the company raised approximately EUR 5.8 million in net proceeds. The company aims to increase its revenue and to improve its profitability so that it can ensure the coverage of needed working capital and meet the covenants of its loan funding.
For more information:
Managing Director Jari Varjotie
Phone: +358 400 419 734
Savo-Solar Plc. discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 14 December 2016 at 2.30 p.m. CET.
Savo-Solar in brief
Savo-Solar with its highly efficient collectors and large-scale solar thermal systems has taken solar thermal technology to the next level. The company's collectors are equipped with the patented nano-coated direct flow absorbers, and with this leading technology, Savo-Solar helps its customers to produce competitive clean energy. Savo-Solar's vision is to be the first-choice supplier to high performance solar installations on a global scale. Focus is on large-scale applications like district heating, industrial process heating and real estate systems - market segments with a big potential for rapid growth. The company primarily delivers complete systems from design to installation, using the best local partners. Savo-Solar is known as the most innovative company in the business, and aims to stay as such. The company has sold and delivered its products to 17 countries on four continents. Savo-Solar's shares are listed on Nasdaq First North Sweden with the ticker SAVOS and on Nasdaq First North Finland with the ticker SAVOH. www.savosolar.fi.
The Company's Certified Adviser is Mangold Fondkommission AB, tel.: +46 8 5030 1550.