RiverFort Global Opportunities (RGO ) announced it is investing €700,000 in a €5m debt financing package for Gaussin SA. The funding package was arranged by RiverFort Global Capital Ltd and will complement €4m of equity already raised by Gaussin in October 2022.
Guassin is a technology company that designs, assembles, and offers zero-emission smart and connected vehicles for freight transportation and people mobility for both off-road and on-road applications. Gaussin has been listed in Euronext since 2010 and has a current market cap of c. €115m.
The funding will support Gaussin's ability to fulfill its recently announced order book of €89.5m.
RiverFort said it expects to generate a return from the investment through a combination of interest income and equity upside through the exercise of warrants.
Phillip Haydn-Slater, Non-executive Chairman, commented:
"We are pleased to be able to invest in such an exciting technology company. This funding shows how we can deploy capital in significant high-quality businesses in order to help them implement their strategy. We are very pleased to be involved in the funding of Gaussin at this point in its growth cycle."
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Gaussin is a strong addition to RiverFort's debt and equity-linked portfolio that currently includes over 20 companies, such as Jubilee Metals plc, Challenger Exploration Limited, Deepverge plc and Troy Resources Ltd. Markets gave the move a nod, sending RGO shares up 4% today.
Guassin is an expert in logistic processes, autonomous technologies, and emerging energy solutions. The company specialises in ports, airports, logistics, people mobility, underground works, and road transportation. It has sold more than 50,000 vehicles worldwide so far.
Guassin's customers include big names such as UPS, Siemens, IKEA, and Carrefour. The company's revenue has grown rapidly over the past three years. It reported €52.8m of revenues in FY21, with a loss of €7.3 million. As of 31 December 2021, Guassin had net assets of €24.2m.
RiverFort has a good record of finding undervalued companies and accelerating their growth. The holding company typically invests in listed junior companies through equity-linked products and debt, a strategy which allows it to control volatility and risk. At the end of the FY21, RiverFort held £5.8m in these types of structured investments with interest in over 20 companies. This hedged strategy generates returns through a combination of fees, interest, and other equity-linked or performance-based instruments.
RiverFort also held £2.7m in pre-IPO investments at the end of FY21, a new focus for the company to further capitalise on undervalued assets.
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