Valoe Oyj

07/23/2020 | Press release | Distributed by Public on 07/23/2020 02:15

Valoe Rearranged the Convertible Bond 3/2019 Subscribed by Global Bod Group SIA by Converting It into New Convertible Bond 1/2020

Valoe Oyj
Other information disclosed according to the rules of the Exchange

Valoe Rearranged the Convertible Bond 3/2019 Subscribed by Global Bod Group SIA by Converting It into New Convertible Bond 1/2020

Valoe Corporation Stock Exchange Release 23 July 2020 at 11.15 (Finnish Time)

Valoe Corporation ('Company') disclosed on 6 May that is has agreed with Global BOD Group SIA ('BOD') on a rearrangement of the remaining EUR 0.4 million principal of the Convertible Bond 3/2019 and the terms of the rearrangement. The Board of Directors of the Company has, on the basis of the authorization granted to it by the general meeting held on 28 May 2020, resolved on a new EUR 0.4 million convertible bond ('Convertible Bond 1/2020') and conversion of the loan receivable BOD has from the Company in connection with the Convertible Bond 3/2019 into a new Convertible Bond 1/2020. The Company has today received a signed subscription form from BOD.

The Convertible Bond 1/2020 is a capital loan referred to in Chapter 12, section 1 of the Finnish Companies Act, and amounts to EUR 400,000. It can be converted into a maximum amount of 5,479,452 new Company shares. The subscription price of one (1) new share of the Company shall be EUR 0.073 per share. The loan period shall commence on 22 July 2020 and expire on 30 June 2021 on which date the Convertible Bond 1/2020 shall expire to be repayable in its entirety. The conversion period shall begin on 1 September 2020 and expires on 30 June 2021.

The Convertible Bond is issued in deviation from the shareholders' pre-emptive subscription rights. The loan shares are issued as special rights to rearrange the Company's existing loan in an economical way. Therefore, there is from the Company's point of view a weighty financial reason to issue the special rights.

The company has one (1) class of shares.

The terms of the Convertible Bond are attached to this release as Attachment 1.

In Mikkeli on 23 July 2020

Valoe Corporation

BOARD OF DIRECTORS

For more information:
CEO Iikka Savisalo, Valoe Corporation
p. 0405216082
email: [email protected]

Distribution:
Nasdaq Helsinki Oy
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.

TERMS OF THE CONVERTIBLE BOND 1/2020 OF VALOE CORPORATION

The Board of Directors of Valoe Corporation (hereinafter 'the Company') has, based on the authorization granted to it on 28 May 2020, resolved to take a subordinated loan (hereinafter 'Convertible Bond 1/2020') so that the Company issues other special rights entitling to the shares pursuant to Chapter 10 of the Finnish Companies Act in the form of loan shares to the lenders of the loan so that the lenders shall have the right to subscribe for the Company's shares based on the respective special rights and that the lenders shall have the right to pay the subscription price of the shares by setting it off against the loan receivable referred to in this document. Further, the Board of Directors of the Company has resolved to convert the previously taken Convertible Loan 3/2019 to a new Convertible Bond 1/2020.

I CONDITIONS OF THE CONVERTIBLE BOND

1. The amount of the Convertible Bond

The amount of the Convertible Bond shall be EUR 400,000.00.

2. The Subscription right of the Convertible Bond and Loan Shares

The Company shall take the loan referred to in these Convertible Bond terms and conditions and shall issue simultaneously against the loan two loan shares. The number of loan shares to be issued shall be one (1) loan share against each subscribed loan capital amount of EUR 200,000.

The Convertible Bond is issued in deviation from the shareholders' pre-emptive subscription rights to BOD Global Group SIA ('BOD') in connection with the rearrangement of the Convertible Bond 3/2019. The Convertible Bond is subscribed against the loan receivable connected to the Convertible Bond 3/2019 BOD has from the Company by converting the principal and/or interest receivable into a Convertible Bond in accordance with the terms of this Convertible Bond.

The shareholders' pre-emptive subscription rights are deviated from as the loan shares are issued as special rights to rearrange the Company's existing loan in an economical way. Therefore, there is from the Company's point of view a weighty financial reason to issue the special rights.

3. Subscription Period and Venue for Subscription of the Convertible Bond

The Convertible Bond will be subscribed by approving the Convertible Bond and signing and submitting the subscription form attached as Appendix 1 to this Convertible Bond to the Company in accordance with the instructions included in the form. The Board of Directors of the Company has the right to approve or disapprove a subscription.

4. Loan Period of the Convertible Bond and Repayment

As the Convertible Bond shall be subscribed against the subscriber's loan receivable from the Company the Convertible Bond shall be deemed to be paid by signing the subscription form.

The loan period shall commence on 22 July 2020 and expire on 30 June 2021 (hereinafter the Maturity Date) on which date the Convertible Bond shall expire to be repayable in its entirety in accordance with these terms of the loan.

5. Interest of the Convertible Bond

As of the date of withdrawal an annual interest of eight (8) percent shall be accrued to the capital of the Convertible Bond.

The last interest period shall end on 30 June 2021. The interest shall be calculated based on the real interest days divided by 365 days.

Upon the due date of the Convertible Bond on 30 June 2021, all the interests accrued from the loan period shall also due fall and to be paid on 30 June 2021.

In the event the date of interest payment is not a banking day, the interest shall be paid on the following banking day. Interest shall be paid only in accordance with the provisions of the Finnish Companies Act regarding subordinated loans.

6. Promissory Note of the Convertible Bond

The Company shall issue to the subscriber of the Convertible Bond a promissory note (hereinafter the 'Promissory Note') as per Attachment 2.

7. Transferability of the Promissory Note

The Promissory Note cannot be transferred without consent of the Company.

8. Capital Loan

The Convertible Bond is a capital loan referred to in Chapter 12, section 1 of the Finnish Companies Act that shall be booked in the Company's balance sheet as a separate entry. The principal of the Convertible Loan shall be repaid and interest on the principal shall be paid only in accordance with the provisions regarding capital loans in the Finnish Companies Act. The company or its subsidiary shall not post security for the payment of the principal and interest.

9. Other terms of the Convertible Bond

For the delivery of the notifications based on this Convertible Bond, the Lender shall inform the Company of its postal address as valid from time to time.

The Lender shall, as per request of the Company, submit to the Company all necessary information with regard to the Promissory Note and its administration.

II TERMS FOR CONVERSION RIGHT OF THE CONVERTIBLE BOND

1. Conversion Right and Conversion Ratio

The Lender is entitled to convert the Promissory Note into the shares of the Company in accordance with the terms described below.

The subscription price of one (1) new share of the Company shall be EUR 0.073 per share.

One loan share of EUR 200,000 pursuant to the Promissory Note entitles the Lender to subscribe for 2,739,726 new shares of the Company. Based on the subscriptions made pursuant to the loan shares the Company shall issue a maximum amount of 5,479,452 new Company shares. The Company has one (1) class of shares.

Upon using the conversion right a portion corresponding to the subscription price of a share shall be set off against the unpaid capital of the Convertible Bond. The subscription price of the shares shall be entered in entirety into the Company's invested non-restricted equity fund.

2. Conversion Period and Process Regarding Use of the Conversion Right

The Lender shall have the right to convert the Promissory Note into the Company's shares during the conversion period (subscription period of the shares) which begins on 1 September 2020 and expires on 30 June 2021.

The conversion of the Promissory Note into the shares shall take place pursuant to the subscription rules in accordance with the Finnish Companies Act. The Lender shall present to the Board of Directors of the Company a written conversion request which shall constitute the subscription of new shares. Each loan share can be converted into shares only in its entirety.

When the Board of Directors has received the conversion request and the Lender has assigned the Promissory Note to the Company, the Board of Directors shall approve the subscription of new shares in accordance with the loan shares of the Convertible Bond. Within 30 (thirty) days from the presentation of the conversion request the Company shall file with the Trade Register notification with regard to entering the new shares to the Trade Register.

3. Shareholder Rights

The new shares of the Company, which have been subscribed for by using the conversion right of the Convertible Bond, shall have the similar rights with the Company's shares issued previously from the moment the new shares have been entered into the Trade Register.

4. The Rights of the Lender in certain special cases

If the Company during the loan period issues new shares in the share issue against the payment or issues new stock options or other special rights entitling to the shares referred to in Chapter 10 of the Finnish Companies Act so that the shareholders shall have the pre-emptive subscription right, the Promissory Note Holder shall have the same or equal right as a shareholder. Equality is reached by the means resolved by the Board of Directors of the Company by giving to the Lender the same priority for the subscription of share, and/or stock option, and/or other special right as referred to in Chapter 10 of the Finnish Companies Act, and/or by adjusting the exchange ratio of the Convertible Bond, and/or by giving the Lender the right to convert the Convertible Bond during other time as stated under Section II.2 above, or by combining the manners of proceeding as referred to above.

If the Company during the loan period issues new shares free of charge, the exchange ratio of the Convertible Bond shall be adjusted so that the percentual share of the shares to be converted by the Convertible Bond compared to all shares shall remain unaltered except for the part that the new number of shares to be converted by the Promissory Note would be a fraction. In the event that the above-mentioned division would not be even, the highest round figure that will fulfill the division to the whole shares will be applied.

If the Company during the loan period resolves to acquire or redeem its own shares or stock options or other special rights entitling to the shares pursuant to the Chapter 10 of the Finnish Companies Act through an offer directed to all shareholders or holders of the above-mentioned rights, an equal offer shall be made to the Lender. The redemption or acquisition of the shares and stock options or other special rights entitling to the shares referred to in Chapter 10 of the Finnish Companies Act shall thus be directed also to the conversion rights of the Promissory Note pursuant to the resolution of the Board of Directors. Otherwise the acquisition or redemption of own shares and stock options and other special rights entitling to the shares referred to under Chapter 10 of the Finnish Companies Act shall not require any actions from the Company with regard to the Promissory Note.

If the Company during the loan period distributes its funds in other means than what has been referred to in the previous section, the Lender shall not be entitled to participate in the distribution of the funds and the distribution of the funds shall not require any actions from the Company with regard to the Promissory Note.

If the Company is placed into liquidation during the loan period, the Convertible Bond shall fall due for payment at the moment when placing into the liquidation has been entered into the Trade Register.

If the Company during the loan period resolves on the merger or division, the Lender shall be reserved a right, during the time period set by the Board of Directors of the Company prior to the resolution on the merger or division, to convert the Promissory Note into shares. Alternatively the Lender shall be given the right to subscribe for the Convertible Bond issued by similar terms by the receiving company so that the subscription can be made on equal terms compared to the shares of the receiving company which have been issued to the shareholders pursuant to what has been resolved on the matter in the merger plan or division plan. After the above-mentioned time period reserved for the use of the conversion right or after the end of the subscription period of the new Convertible Bond, no conversion right shall exist anymore.

If a redemption right or redemption obligation of the minority shareholders referred to under Chapter 18 of the Finnish Companies Act arises, after the Company has received notification on the origin of the redemption right or redemption obligation, the right to convert the Promissory Note into shares during the time period resolved by the Board of Directors shall without undue delay be reserved for the Lenders. After the above-mentioned time period reserved for the use of the conversion right, no conversion right shall exist anymore.

5. Disputes

Disputes arising out of this Convertible Bond shall be settled by arbitration consisting of one arbitrator in accordance with the Arbitration Rules of the Finland Chamber of Commerce. In the event the parties to the dispute cannot agree on the arbitrator, the Finland Chamber of Commerce shall appoint the arbitrator. The place of the arbitration shall be Helsinki, Finland.

6. Other Issues

The Board of Directors shall be entitled to resolve on any other matter related to the Convertible Bond and the use of the conversion right.

Notifications to the Lenders shall be submitted by letters to the postal addresses notified to the Company by each Lender. A notification is deemed to have been delivered on the working day following the date of sending the notification.

III OTHER MATTERS

1. Other Issues

These terms and conditions have been drafted in Finnish and in English. In the case of any discrepancy between the Finnish and English terms and conditions, the Finnish terms and conditions shall prevail.