Realfiction secures a loan facility of up to SEK 35 million
Realfiction Holding AB (“Realfiction” or “the Company”) has entered into a loan agreement of up to SEK 35 million with Formue Nord Fokus A/S and extends its financial runway until 31 August 2025.
Background and rationale for the loan
Realfiction has since 2019 invested in developing its Directional Pixel Technology™, a display technology that is aiming to transform the way we see images on displays. The intellectual property portfolio of the Directional Pixel Technology has developed well in the last 6 months and now includes several owned and licensed granted patents with more patent grants expected during 2024. With the intellectual property portfolio, the Company has the keys to unlock a new generation of incredible social 2D and 3D experiences without the limitations of attempts using glasses, or the drawbacks of competing technologies such as single user limitations, lower resolution, or high manufacturing costs. The technology is now being showcased to potential commercial partners with the aspiration to enter licensing and/or collaboration agreements. This liquidity injection increases Realfiction’s ability to strengthen the intellectual property portfolio and in the ongoing business development activities to enter sound agreements with licensors, partners, or collaborators.
“We are on the brink of several pivotal value moments in the upcoming 18 months. To capitalize on these opportunities, increased liquidity is crucial. Therefore, the loan is a rational, important, and integral part of Realfiction’s strategy to have a capital structure that enhances shareholder value while considering the Company’s current risk level. We are also pleased to present a financing solution that is non-dilutive for our shareholders.” says Realfiction CEO and co-founder Clas Dyrholm and continues “This is a financing solution that will provide the Company with an extended financial runway to enable us to be better positioned in the ongoing discussions with potential partners for our Directional Pixel Technology.”
Loan terms
The loan amounts to a total of up to SEK 35 million and is divided into two tranches. The first tranche of SEK 20 million is paid out upon signing of the loan agreement, and the second tranche, SEK 15 million, can be drawn between August and November 2024, at Realfiction’s discretion under the condition that Realfiction’s market capitalization exceeds SEK 350 million at the time. The loan matures for payment on 31 August 2025. The loan is subject to a set-up fee of 5 percent of the loan facility and carries an annual interest rate of STIBOR 3M + 11 percent of the outstanding loan amount and will be paid at the end of each calendar quarter. Realfiction has the right to repay the loan at any time without any early repayment fee. The Board and Company have assessed the loan terms as market competitive and deem taking the loan to be in the best interest of both the Company and its shareholders.