Swedish Automobile N.V. (SWAN) announces that it entered into a EUR 25 million convertible bridge loan agreement with Gemini Investment Fund Limited (Gemini), healing thereby securing additional short-term funding.
“Assuming the receipt of these funds as scheduled, Saab Automobile expects to have secured the liquidity required to restart production, hopefully within two weeks, subject to reaching agreement with its suppliers which includes feasible delivery schedules,” Swedish Automobile said.
Shares in Netherlands-based Swedish Automobile, which were up 25 percent before the news, were up 52 percent at 1515 GMT.
Swedish Automobile, previously known as Spyker Cars NV, said the loan has a maturity of six months and an interest rate of 10 percent per year.
Victor Muller, CEO of Swedish Automobile and chairman of Saab Automobile said: “I am relieved to report that we made the June salary payments this afternoon from the proceeds of the sale of cars we announced last Monday. We again extend our sincerest apologies to our employees for the hardship the late payment has caused to them. We have clearly gone through a very rough patch in the past few weeks and hopefully we can now reach agreement with our suppliers so as to ensure a resumption of our production in a controlled way. Our mid and long-term funding is secured by the Pang Da /Youngman agreements which are still subject to obtaining certain governmental approvals. Assuming these approvals are obtained, the Gemini bridge loan will be repaid in full.”