© carabiner dreamstime.com Electronics Production | January 17, 2013
Shareholders grant capital loan to Incap
Incap Corporation has concluded its negotiations concerning the redemption of the convertible loan issued in the year 2007.
The company had in spring 2012 agreed upon the arrangement of the convertible loan and negotiated now on the part of the loan, which was maturing in November and December 2012 and amounted to a total of EUR 2.4 million. As a result of the negotiations Incap has agreed with the holders of the convertible loan upon redemption arrangements and partly renegotiated the conditions of the contracts made last spring. Incap redeems out of the remaining loan units a total of EUR 1.0 million in cash payment in January 2013. Furthermore, a part of the loan with respective interest, i.e. a total of EUR 0.4 million, will be converted to Incap's shares by means of a directed share issue to one holder of the convertible loan in the near future. The final redemption of the 2007 convertible loan, EUR 1.0 million including interest, will be settled by the end of June 2013. In connection with the negotiations concerning the redemption of the convertible loan three of Incap Corporations major shareholders have granted the company a capital loan of EUR 1.05 million. The loan period is three years and an interest of 10% is calculated on it annually. The loan conditions include the right to set off eventual subscription price of shares in a share issue arranged by the company. Kalevi Laurila, who is closely related to the company, is one of the shareholders who granted the capital loan. The negotiated arrangement of the convertible loan and the capital loan granted by the major shareholders will improve the financial position of Incap, because the redemption of the convertible loan has been a prerequisite for the withdrawal of a bank loan which has already been granted to the company. Respective negotiations with the bank continue. Sami Mykkänen, President and CEO of Incap Group: "I am very pleased that the long and diverse negotiations now have come to a successful end. The result of the negotiations proved in my opinion the fact that major shareholders and financiers are committed with our company on a long term. Thanks to the arrangement our liquidity is improving clearly. We can now focus all our efforts on enhancing our core business and improving our profitability for the best of our customers and other stakeholders."