The loan of a total of SEK 6 million, which is to be disbursed within three banking days, has an arrangement fee of five percent of the total loan amount and a monthly interest of 1.5 percent which is capitalized. The loan is due for payment on January 31, 2027, but the Company has the right at any time, in whole or in part and without cost, to repay the loan together with accrued interest early.

If the Company carries out a new share issue during the term of the loan, the lenders shall have the right to offset parts of or the entire loan against shares in such new share issue, provided that the Company's board of directors deems this to be consistent with law and good practice in the stock market.

If the loan has not been repaid on the due date, the outstanding loan amount plus accrued interest shall be subject to late payment interest of three percent per month, which shall be capitalized. The lenders shall also have the right to request that the Company carry out a new share issue, whereby the lenders shall have the right to subscribe for shares in the new share issue by offsetting the loan, provided, among other things, that the Company's board of directors deems that such a new share issue is compatible with law and good practice in the stock market. The subscription price in the new share issue shall correspond to 85 percent of the volume-weighted average price (VWAP) of the Company's share during a period of 20 trading days ending the day before the due date, but not less than the share's quota value.

The loan, which has been raised with the aim of strengthening the Company's working capital and liquidity, enables the Company to manage its short-term capital needs while reviewing its long-term financing. The loan consists of seven separate bilateral loans on, apart from the loan amounts, identical terms from seven lenders. Within the framework of the lender consortium, the Company's largest shareholder and board member David Gramnaes (through Gramtec Invest AB) has committed to lend a total of SEK 2.625 million, and the Company's chairman of the board and major shareholder Oskar Säfström has committed to lend a total of SEK 1.1 million. In addition, the Company's CEO Magnus Andersson (through Innocreate AS) has committed to lend SEK 0.1 million. The remaining loan of a total of SEK 2.175 million has been committed to be loaned by four private investors. David Gramnaes (who is providing the loan through Gramtec Invest AB), Oskar Säfström and Magnus Andersson (who is providing the loan through Innocreate AS) are related parties to the Company according to Spotlight Stock Market's issuer rules. 

"The loan strengthens the company's liquidity and allows us to safely manage the current capital needs while we review the longer-term financing," says Magnus Andersson, CEO of Smoltek.