Leclanché secures financing for turnaround plan

Leclanché signed a Senior Secured Convertible Loan Agreement for CHF17 million (US$17.62 million) from Precept Fund Management SPC. The loan matures in June 2016. The company states that the process was long and difficult but expressed positivity at closing the medium term financing with Precept.

"We are delighted that the company has secured this CHF17 million medium term financing which provides it with sufficient liquidity to pursue its product development and reach commercial deployment of its exciting lithium-ion titanate product range for the home and industrial markets," Chairman of Leclanché Rolf Eckrodt said.

Steve Barber, Chairman of Precept Investment Management Limited said that with this loan, Leclanché will be able to finance its turnaround plan and create a platform for future growth in all business sectors of the company at a time when energy storage technologies are poised for dramatic expansion.

This is Precept’s second investment in the energy storage sector globally. This sector is projected to be worth US$60 billion by 2020.

Revenues for first half of 2013

Leclanché also announced its unaudited revenues for the six months that ended 30 June 2013. This amount was stated as CHF7.3 million (US$7.56 million), a fall from CHF8.43 (US$8.73) million for the same period in 2012. The revenues were down 13.5% thisyear.

Leclanché does not expect the operating losses for the first six months to exceed CHF5.5 million (US$5.69 million). The losses were CHF4.45 million (US$4.61 million) in the same period last year before deduction of interest, tax, depreciation and amortization.

Leclanché also expects the operating losses before interest, tax, depreciation and amortization deductions to be below CHF10 million (US$10.35 million). This is lower than the CHF12.9 million in 2012.

With the funding secured from Precept, the company expects to break-even in 2015. Still this depends on Leclanché ‘s successful launch of the stationary product range and the continued execution of the turnaround plan.

More details on Leclanché’s financial results and financing can be found here.