Metacon secures short-term financing

Metacon has announced that it has secured short-term financing through a 20 MSEK loan. The financing was largely anticipated from our side, but we view the funding and its terms as positive. As a result, we are not making any changes to our estimates or recommendation.

Today, Metacon announced that the company has secured a temporary project financing of 20 MSEK. The Loan carries an interest rate of 2% per commenced 30-day period and has a setup fee of 5%. According to the press release, the repayment of the loan is to be made no later than on 31 August 2025. The purpose of the financing is to secure the Company's working capital needs until the Company receives milestone payments related to ongoing customer projects.

Secures short-term capital needs ahead of key project milestones

As we have emphasized in our previous research reports, we expect liquidity to remain tight until June/July 2025, when a significant portion of the restricted cash tied to previously announced orders is expected to be released. Since Metacon has not yet reached the level of maturity or creditworthiness required to secure financing from traditional banks, we have considered project financing the most likely alternative. Therefore, today’s announcement is in line with our expectations. At first glance, the loan terms appear reasonable. While project financing tends to be relatively expensive, we anticipate that the company will only need to rely on this type of funding until milestone payments from ongoing customer projects are received. However, we cannot rule out the possibility that the company may need to secure additional project financing to cover working capital needs as new orders are received. On the other hand, at that stage, with a larger order backlog, Metacon should be well positioned to obtain financing on more favorable terms.