Stockholm, Sweden, September 22nd, 2020 – KebNi AB, releases update on potential delays caused by Covid-19 and announces bridge loan.
As has been communicated through various media channels the past days, the Covid-19 cases are increasing in Israel and Prime Minister Netanyahu announced a second general nationwide lockdown starting Friday September 18, 2020.
The company is dependent on deliveries to Israel and informs that the lockdown is giving uncertainty to the timing of delivery payment of products to Israel originally anticipated in September 2020. Payment milestones are subject to final testing and approval together with the Israeli customer and those approvals will likely be affected by the lockdown. KebNi expects payments from Israel in excess of 20 MSEK on current contracts within 2020.
“As the covid-19 cases have increased in certain regions, measures have been taken by governments which, for our operations, entail certain delays in the final stages of concluding delivery of orders. We are working in close collaboration with the customer to find alternative ways to secure necessary testing and approvals, under these challenging and changing conditions that Covid-19 is providing. I feel certain that we will find pragmatic solutions and that, on a full-year basis, deliveries and payments for the current contract will be fulfilled.” – comments Carsten Drachmann, CEO of KebNi.
Due to the evolving situation with Covid-19 in Israel, the Company has, in order to ensure continued development and operation, secured interim financing through extension of the current bridge loan as well as an additional bridge loan of approximately SEK 12.6 million from Formue Nord. Both loans are due on December 15, 2020. The terms of the current loan are unchanged at 1% interest rate per months and no additional fees. The terms of the new loan are a 5% setup fee and 1.5% interest rate per month, with the option of paying back both loans sooner if possible.