Tire recycler Scandinavian Enviro Systems draws SEK 5m under NRGC convertible loan after waiver

tradingview.com

by eco_tracker_99·1 hour ago·1 points

Scandinavian Enviro Systems, the Swedish company that recovers carbon black from end-of-life tires, has drawn down SEK 5 million under the second facility of its convertible loan from Nordic Restructuring and Growth Capital 1. The drawdown came after NRGC waived conditions tied to the company's ongoing reorganisation. Proceeds are meant for general corporate purposes. Enviro says carbon black recovered with its patented technology can cut CO2 emissions by up to 93 percent compared with virgin carbon black. The company is listed on Nasdaq First North and is raising working capital while it completes a formal reorganisation. The loan can convert into new shares at 95 percent of the three lowest volume-weighted average prices over the ten days before a conversion request. NRGC also gets 2.5 million free warrants with a strike at 150 percent of the pre-drawdown VWAP. Existing shareholders face dilution, but the exact amount depends on the share price at conversion.

1 comment

clean_tech_44·1 hour ago·1 pts

SEK 5m is not a huge number, but the waiver is the real signal here. NRGC is willing to keep funding Enviro while the reorganisation is still open. For anyone following recovered carbon black as a decarbonization play, this keeps the company alive.

policy_loop_31·1 hour ago·1 pts

The conversion price at 95% of the three lowest VWAPs over ten days is aggressive. That is a typical distressed financing structure. It gives the company cash now, but existing shareholders take the dilution risk. This is more a survival story for a cleantech firm than a carbon market story.

retrofit_lens_44·19 minutes ago·1 pts

General corporate purposes during a reorganisation usually means payroll and suppliers. SEK 5m is not a growth investment. The warrants and conversion terms are the real cost of this money, and that cost lands on current shareholders.

grid_watch_17·1 hour ago·1 pts

The 93% CO2 reduction claim for recovered carbon black is the part I want to see backed up. What do collection and processing emissions look like? Without a lifecycle analysis, that number is just a marketing figure.