SeaTwirl’s new board and management review operations
Wind power company SeaTwirl announces that the company has decided to conduct an operations review and to take up a related party loan from main owner Knut Claesson. This will give the company the opportunity to develop its operations and strengthen its organization ahead of a capitalization later in 2020. This means that the pilot turbine S2 is expected to be launched into the sea in 2022.
SeaTwirl has an important and comprehensive step ahead to credibly attract capital to build a larger pilot turbine, S2, a 1 MW floating wind turbine. As part of the process of securing that the company is prepared for this, the new management and board have decided to accept a proposal which means that the company takes up a loan from main owner Knut Claesson.
This will give the company the opportunity to develop a well-planned and cost-effective plan. In addition, the company can strengthen its organization and prepare itself for larger capital raise later in 2020. This means that the new pilot turbine S2 will be delayed and is now expected to be launched into the sea in 2022 instead of 2021 as has been communicated earlier.
The extra project time also means that the company can systemize and optimize the production and installation processes, which in turn streamlines the development and cuts lead times for future commercial wind turbines.
“To conduct an operations review is a long-term wise decision from SeaTwirl’s new management and board and I’m happy to be able to make it possible”, says Techn Dr Knut Claesson.
As Knut Claesson holds 33.5 percent of the shares in SeaTwirl, the loan agreement is a so-called related party transaction and needs to be approved by a general meeting where Knut Claesson does not participate. The loan agreement is therefor conditional on approval from an extraordinary general meeting. A notice of an extraordinary general meeting will be published in connection with this press release.
The loan agreement between the company and Knut Claesson amounts to a total of SEK 5,000,000 and runs at an annual interest rate of three (3) percent until the loan has been repaid in its entirety. The loan must be repaid no later than December 31, 2020. Alternatively, SeaTwirl may propose a set-off. Offsetting requires the lender’s written approval. However, SeaTwirl is entitled to repay the loan at any time, in whole or in part, together with accrued interest. The board of directors considers the loan terms as market based and the loan agreement to contain customary terms. The loan agreement was entered into on May 18, 2020.