Financing

The financial position of the group

At the end of June, the group’s cash and bank receivables were 3.0 MEUR (1.2 MEUR). In accordance with the strategy, Endomines invests in ore exploration on the Karelian gold line. In addition, the work preparing the Hosko production area had an impact on the cash flow. The effects are one-time. Interest-bearing net debt at the end of June was 18.0 MEUR (11.6 MEUR), the net gearing ratio was 56 % (33 %) and the equity ratio was 50 % (66 %).

Convertible bonds from Finnish investors

In November 2023, Endomines agreed with a Finnish investor group on a convertible bond loan for a maximum of EUR 3.2 million, of which EUR 0.8 million was paid in January 2024. After payments in January, the financing arrangement is fully paid.

13.3.2024 Endomines agreed with the company’s current owners on a convertible bond loan of a maximum of 3.8 million euros. The loan is to be used for the expansion of ore exploration of the Southern gold line, as well as for general business needs. The maturity of the convertible bonds are 48 months, and the annual interest rate is 10 percent. In accordance with the financing agreement, the convertible bonds can be fully or partially exchanged for company shares no earlier than 12 months after the loan drawdown date. The exchange price is made up of the daily average price calculated at the share’s closing price during the 10 trading days preceding the day of the exchange request, minus 18 percent.

Warrants of LDA

In connection with the 2021 financing arrangement, the company issued 14,000,000 options, each of which entitles its holder to subscribe for one share in the company before the 40:1 reverse split share merger implemented in 2022. The number of shares subject to the warrants changed accordingly after the reverse split. The share options were issued to LDA Capital Limited, deviating from the shareholders’ pre-emptive rights, and without consideration. The subscription price of the new shares subscribed with options corresponds to 135 % of the average price weighted by the turnover of the company’s share for the 10 trading days preceding the date of the 2021 annual general meeting. After the Reverse Split, there were 350,000 options (1,400,000/40). According to the agreement, the subscription price of one share was EUR 0.36/share, i.e. EUR 14.4/share (0.36*40). The right to subscribe for shares ended on June 10, 2024.