2019-07-19 10:00:00 CEST

2019-07-19 10:00:02 CEST


English Finnish
Valoe Oyj - Other information disclosed according to the rules of the Exchange

Valoe Corporation: Prospectus Regarding Admission to Trading of in Total 13,615,864 New Shares in the Company Approved

Valoe Corporation                     Stock Exchange Release          19 July 2019 at 11.00 Finnish time

Not for release, publication or distribution, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, Singapore, South Africa or the United States or any other country where distribution or disclosure would be against law.

The Financial Supervisory Authority has today approved the prospectus (the "Prospectus") of Valoe Corporation (the "Company") pursuant to the Finnish Securities Markets Act (746/2012, as amended) regarding admission to trading of in total 13,615,864 new shares in the Company. As set out in the stock exchange release published by the Company on 18 July 2019, the Prospectus covers admission to trading of in total 2,050,000 new shares subscribed by the Company in the directed share issue without consideration to the Company itself on 15 July 2019 and of in total 11,565,864 new shares subscribed by the lenders of the Company's convertible bond 1/2019 by converting the promissory notes on 18 July 2019.

In this release, the Company discloses certain information related to the financial situation and financing needs of the Company, as described in the Prospectus.

As described in the Prospectus, to the understanding of the Company, the amount of Company's working capital is not sufficient for the conduct of its business in accordance with its expansion driven strategy (including strategic investments) for the period of next 12 months. The strategy of the Company covers expansion to the IBC solar cell technology, further development of such technology, starting of IBC solar cell production and carrying out other investments related thereto.

The cumulative cash flow of the Company is estimated to be approximately EUR 1.5 million negative. The trade payables due on the date of the Prospectus amount to approximately EUR 1.6 million. Other debts than equity instruments to other parties than to the related parties of the Company amount to approximately EUR 1.0 million and other short-term debts amount to approximately EUR 0.9 million. The product development investments to i.a. solar cell technology pursuant to the Company's investment plan amount to EUR 6.0 million for the period of next 12 months.

To the understanding of the Company, in addition to the utilization of the existing financial commitments amounting to EUR 3.0 million in full, additional financing in the minimum amount of EUR 8.0 million is needed for the conduct of the business pursuant to its strategy.

The Company has existing financing commitments from Winance Investment in the amount of EUR 1.5 million for the purposes of enhancing its cash position of which the Company estimates to withdraw approximately EUR 1.5 million during the period of next 12 months.

Additionally, the Company has a product development loan related to the ongoing solar cell product development from Business Finland (former Tekes) of which the Company believes to be able to withdraw the remaining EUR 0.8 million in late 2019. Further, the Company is involved, as a participant to the European level consortium. in the research project belonging to the European Union's Horizon 2020 program of which the Company believes it can withdraw approximately EUR 0.7 million financing in or around in October 2019.

Additionally, the Company has negotiated on additional financing with its key shareholders and expects that in total EUR 0.5 million additional financing can be withdrawn from such key shareholders by the end of August 2019. Further, the Company believes that it is able to agree on the extension of the payment terms with respect to its existing short-term debts and liabilities amounting to EUR 0.5 million (existing short-term debts and liabilities amounting in total to EUR 5.0 million) so that such liabilities would not need to be settled during the period of next 12 months .

In order to cover its strategic investments and working capital deficit the Company contemplates to arrange a new share issue or to collect new capital by way of some other financing arrangement during the second half of 2019 in which the Company intends to collect in total EUR 7.0 million of new capital.

Should the Company not be able to collect sufficient funds to carry out its investments, the Company would be obliged to abandon its expansion driven strategy.

However, the Company could continue its basic operations as a company selling and developing new generation solar panel and cell technology provided that it would be able to finance the negative cumulative cash flow for such basic operations. Provided that the Company abandons all its investments and is able to utilize existing financing commitments in full, the Company assumes to be able to finance the negative cumulative cash flow for the period of next 12 months.

The investors are requested to read entire contents of the Prospectus and particularly sections concerning description of the risks.

The Prospectus is available in Finnish language at the registered office of the Company at Insinöörinkatu 5, 50150 Mikkeli, during the customary office hours and in the electronic form on the website of the Company at www.valoe.com/sijoittajat.

In Mikkeli 19 July 2019

Valoe Corporation

Board of Directors

For more information:

Iikka Savisalo, President and CEO, Valoe Corporation
Tel. +358 40 521 6082
email: iikka.savisalo@valoe.com

NASDAQ OMX, Helsinki
Main media

Valoe Corporation specializes in the clean energy, especially in photovoltaic solutions. Valoe provides automated production technology for solar modules based on the company’s own technology; production lines for modules; solar modules and special components for solar modules. Valoe's head office is located in Mikkeli, Finland.