Mauna Kea Technologies announces further strengthening of financial condition by securing €4M of non-dilutive loans guaranteed by the French state (PGE)
Mauna Kea Technologies announced that it has received financing approvals from BNP Paribas and Bpifrance for a total of €4 million in non-dilutive financing in the form of French state-guaranteed loans (Prêts Garantis par l’Etat, or PGE in France). BNP Paribas and Bpifrance will each provide loans of €2 million with fixed interest rates of 0.25% and 1.75% per annum, respectively. 90% of the bank loans will be guaranteed by the French Government under the PGE state-guaranteed loan scheme (ministerial orders of March 23 and April 17, 2020 awarding the state guarantee to credit institutions and finance companies, implementing Article 6 of Law no. 2020-289 of March 23, 2020). Each loan has an initial term of 1 year. At the end of the first year, repayment of the principal amount due may be further deferred, at the option of the Company, over a maximum of 5 years.
“We are pleased to announce approvals for loans from BNP Paribas and Bpifrance totaling €4 million as part of the PGE state-guaranteed loan scheme by the French Government,” said Robert L. Gershon, Chief Executive Officer of Mauna Kea Technologies. “This non-dilutive capital infusion, combined with the drawdown of the €6 million second tranche of our financing agreement with the European Investment Bank announced in July, further strengthens our financial condition and will support the execution of our strategic growth initiatives.”