Leclanché Secures $65 Mn Loan Facility to Expand Operations

Leclanché has signed an agreement with Yorkville Advisors for an unsecured convertible loan facility with a maximum ceiling of USD 40 million.

One of the world’s leading energy storage companies Leclanché has signed an agreement with Yorkville Advisors Global, a New Jersey-based investment firm providing for an unsecured convertible loan facility with a maximum ceiling of USD 40 million. The initial proceeds will be used for Company operations and expansion.

The agreement calls for the drawdowns of the facility within a two-year period. The first tranche of the loan facility is CHF 2.9 million which has already been expended. Additional drawdowns are expected to be in the amount of CHF 1.4 million or an amount determined by both Leclanché and Yorkville Advisors.

Anil Srivastava, CEO of Leclanché, said, “we are pleased to partner with Yorkville Advisors in this innovative financing arrangement that achieves several key objectives and supports the Company’s previously announced growth plan. Not only are we securing important short-term financing to fund current operations and growth activities, but we are also taking on a financial partner with tremendous expertise in helping to build liquidity for companies’ listed shares. Our agreement provides built-in incentives for all parties to benefit handsomely from this transaction.”

FEFAM, Leclanché’s majority shareholder, has agreed to provide Leclanché with a CHF 25 million working capital financing convertible facility with a fixed draw down schedule. This additional financing from a long-time supportive shareholder of Leclanché brings the total growth funding raised in 2020 to up to approximately CHF 65 million.

“This additional funding now in place will support the implementation of our high-growth business plan and, together with the other financing projects the Company is working on, will help finance the tripling of our manufacturing cell production capacity in Germany to 3 million cells per annum to support delivery of the large order book we have in Leclanché‘s eTransport Business. We expect to share more details of the business plan and funding in the coming weeks,” Srivastava added.

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Ayush Verma

Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.

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