Ingredients manufacturer Evolva will receive investment of up to CHF 30 million (€28 million) over the next three years from funds managed by US investment firm Yorkville Advisors.
The financing will be delivered in instalments of CHF 1 million (€930,000) in return for shares in Evolva at a 5% discount on the market price at the time. By this morning’s share price, FoodBev understands that the investment would secure Yorkville Advisors nearly 12.8% in the Swiss company.
Setting aside the discount afforded to the financial firm, the price values Evolva at almost €235 million.
The terms of the transaction also allow Evolva – best known for its expertise in brewing and biotechnology – to instigate one of the million-franc investment rounds ‘with advance notice’, which its chief financial officer said would be an asset going forward.
Evolva CFO Oliver Walker said: “This [standby equity distribution agreement] provides us with financial flexibility, which is key at our current stage. Moreover, it has a reasonable pricing, limiting dilution for our current shareholders. It is a great addition to our financing toolkit. We have worked with Yorkville before and I am confident the facility will work as smoothly as it did back then.”
The two organisations worked on a similar arrangement between 2011 and 2013.
Evolva will pay an upfront fee of CHF 250,000 (€233,000) for the facility, followed by two further instalments totalling CHF 400,000 (€373,000) when the amount drawn from the facility passes CHF 10 million and CHF 20 million.
Its preliminary revenue for 2016 is expected to be around CHF 9.6 million (€9 million), but it made a net loss of CHF 36 million (€33.6 million) last year – down from CHF 31.8 million in 2015.
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