Valoe Oyj - Company Announcement

VALOE’S NEGOTIATIONS FOR SIGNING THE FIRST MANUFACTURING PARTNERSHIP AGREEMENT HAVE IMPROVED. THE FINANCING SITUATION CONTINUES TO BE VERY TIGHT.

Valoe Corporation                      Stock Exchange Release 29 June 2015 at
15.45 Finnish time 



VALOE'S NEGOTIATIONS FOR SIGNING THE FIRST MANUFACTURING PARTNERSHIP AGREEMENT
HAVE IMPROVED. THE FINANCING SITUATION CONTINUES TO BE VERY TIGHT. 



Valoe has concluded business negotiations for the first manufacturing
partnership agreement with a foreign customer. However, a sale of a module
manufacturing plant is subject to local project financing that is under
negotiation and it is not yet certain whether the negotiations will be
successful. Valoe estimates that the negotiations for local project financing
will be concluded by the end of September 2015. The company will disclose a
separate release on a possible order relating to the manufacturing partnership
agreement after project financing will be secured. 



In addition to the above-mentioned Valoe is negotiating for delivering solar
module plants or production lines with several customers interested in Valoe's
manufacturing technology worldwide. These negotiations have improved but are
still going on. 



Previously Valoe has estimated that the company is able to finalize long-term
financing in the second quarter of 2015 and that the schedule of long-term
financing negotiations will be highly depended on whether the company succeeds
in signing its first manufacturing partnership agreement on solar module
production technology during the second quarter of 2015. Since then the company
has announced that it issues a convertible bond to secure a bridging financing
and starts preparing a share issue to be carried out during 2015. The company
plans to arrange its long-term financing with the aforesaid share issue to
national and international investors. 



On 29 May 2015 Valoe has issued a convertibe bond. The total principal amount
of the convertible bond is EUR 5,000,000 and subscription period continues
until 30 July 2015. Minimum subscription amount is EUR 100,000. The terms of
the convertible bond have been disclosed on a separate release on 29 May 2015. 



Despite improving negotiations for both financing and deliveries of production
technology Valoe's financing situation continues to be very tight. The
sufficiency of the company's financing for the next twelve months involves very
significant risks. According to the current view of Valoe's management the
company needs to obtain bridging financing until a long-term financing
arrangement has been secured by the planned share issue and the cash flow of
the business operations of the company has turned positive. The bridging
financing is supposed to be secured with the convertible bond issued on 29 May
2015. The company will have a significant deficit in its working capital until
the first delivery of production technology for solar modules will start to
generate positive cash flow. If the company does not succeed in securing
sufficient short-term and long-term financing, the continuity of the company's
operation may be jeopardized. 



Attainment of the project financing for the first manufacturing partnership
agreement and the success of the convertible and the share issue involve risks.
It is not certain whether the company is able to collect max. five million
Euros with the convertible bond to strengthen the company's capital structure,
or capital with a share issue to materialize the company's cleantech strategy
and to secure long-term financing. Further, it is not certain that local
project financing for building a solar module plant in accordance with the
manufacturing partnership agreement will be secured. Should negotiations for
local project financing fail, the manufacturing partnership agreement and a
possible order relating to it will not materialize. 



In Mikkeli 29 June 2015



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



Distribution:
NASDAQ OMX, Helsinki
Main media
www.valoe.com



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.