FrontOffice Nordic AB (publ) (“FrontOffice”) and GEM Global Yield Fund LLC SCS (“GEM”) have entered into an investment agreement under which GEM, at FrontOffice’s request, commits to invest maximum 52mSEK in FrontOffice during a period of 36 months.
“While the macro trends in the Swedish economy are trembling and causing an increased rate of bankruptcies, we are able to secure a financing solution through the agreement with GEM that enable us to get engaged in both more and bigger investments and at the same time securing working capital. This is something we have worked hard towards since the establishment of FrontOffice and finally we have the financial muscles necessary to take our company to the next level” says Johan Lund, CEO FrontOffice.
“Our previous investments have historically been profitable with a very competitive yield profile. By access to the now secured financing, we are obviously better positioned to do better deals adding further shareholder value. This potential trumps the dilution that naturally comes with utilizing this investment agreement. I trust and hope our shareholders share my view on this and that they also understand that to add significant shareholder value going forward, FrontOffice needs mores shares in trade and thus more shareholders”, says Johan Lund.
“Since the establishment of FrontOffice, we have continuosly come across many investment opportunities that we, due to the lack of funding, have been forced to forward to other players on the market, ending up in nice deals with solid yield profile. The GEM agreement allows us to take active part also in such opportunities going forward”, says Johan Lund.