PRFoods Secures Financing to Strengthen Liquidity Position

PRFoods’ Strategic Loan Agreement

PRFoods is pleased to inform investors about its recent financial maneuverings aimed at bolstering the company's liquidity. Through its subsidiary, Saaremere Kala AS, a loan agreement has been established with Amber Trust II S.C.A., an associated stakeholder in the company. This loan is set to play a crucial role in the operational financing of PRFoods and its subsidiaries.

Details of the Loan Agreement

The agreement outlines a principal amount of up to EUR 550,000 at an 8% interest rate, structured for repayment in two phases: half by the end of February and the remaining by the end of July in the following year. Notably, a major share of this loan, EUR 400,000, is earmarked for supporting business activities at Saare Kala Tootmine OÜ, ensuring that this subsidiary has the necessary funding to thrive.

Purpose Behind the Loan

The loan aims to reinforce the financial robustness of the group companies during a period characterized by tight liquidity. PRFoods faces challenges in sourcing alternative financing; thus, this support is pivotal in maintaining operational smoothness and financial health.

Implications for the Balance Sheet

This financial influx is set to elevate the balance sheet totals of Saaremere Kala AS by increasing both assets and liabilities, essentially enhancing the financial standing of PRFoods’ subsidiaries. The interest payments associated with the loan will also contribute positively to the income statement, influencing PRFoods’ financial metrics.

Securing the Loan

To safeguard the Lender's interests, several security interests are enforced. These include the assignment of deferred receivables totaling EUR 405,000, which will be paid in two portions in early next year and the year following. Additionally, a pledge over shares owned by PRFoods in AS TFTAK has been established to further guarantee the performance of the loan obligations.

Usage of Funds

The funds acquired from the loan will serve as bridge financing, facilitating a smoother transition until the aforementioned receivables are due. Saaremere Kala AS plans to leverage these funds along with revenue from its ongoing business to fulfill its financial commitments.

Associated Persons Transaction

This loan agreement qualifies as a transaction with associated persons, given that Amber Trust II S.C.A. holds significant shares in PRFoods. Furthermore, its management board members are involved in significant oversight roles within PRFoods, thus linking their interests closely to this transaction.

Conclusion and Further Communication

Despite the importance of the transaction, it does not meet the threshold for a significant transaction as defined by the Nasdaq Tallinn Stock Exchange requirements. Investors are encouraged to stay updated on PRFoods’ progress and future endeavors.

For more information, please reach out to Kristjan Kotkas, a member of the management board at PRFoods, via email investor@prfoods.ee or visit www.prfoods.ee for more details and updates.

Frequently Asked Questions

What is the purpose of the loan obtained by PRFoods?

The loan is intended to enhance the liquidity position of PRFoods' subsidiaries and support their business activities during challenging financial conditions.

How much is the loan amount and what are the interest rates?

The loan amount can go up to EUR 550,000 with an interest rate of 8% per annum.

Who is the lender for this loan?

The loan is provided by Amber Trust II S.C.A., which is also a shareholder in PRFoods.

When are the repayment deadlines for the loan?

The repayment is structured so that 50% of the loan is due by February and the remaining by July next year.

What are the security interests involved in the loan agreement?

The loan agreement includes security interests such as the assignment of deferred receivables and a pledge over shares in AS TFTAK held by PRFoods.

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