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Published: 2023-04-26 07:30:00 CEST
Elmo Rent
Company Announcement

ELMO Rent AS has raised up to 2.6 million euros

Elmo, the world’s first company to introduce remotely controlled electric cars in a car sharing service, has raised up to 2.6 million euros (incl convertable loan on 5,5eur per share) from international growth capital fund and other investors to speed up the licencing of remote control technology in foreign markets, grow the team necessary for the development of next-generation technologies and to prepare next eco-sustainable remotely controlled cars and take them to public roads.

ELMO Rent AS (hereinafter Elmo) completed the fundraising announced in May 2022, as a result of which Elmo raised a total of up to 2.6 million euros for the fulfilment of the above objectives as follows:

1.     Debt instruments between Elmo and the following investors with a possibility to convert the debt into shares in Elmo:

-        Investment from the lead investor Usaldusfond Highgoal Mobility IV (registry code 16611195) in the amount of EUR 500,000, including an option to increase the loan amount with additional EUR 500,000, conditions of conversion: EUR 5.5 per share, EUR 500,000 shall be converted into 90,909 shares, decision to receive repayment of the investment or convert it into shares must be made in February 2025 the latest, interest payable from the investment amount is 10% per year. Additionally, in connection with the convertible debt instrument, an option agreement has been concluded with the lead investor with the possibility to acquire shares in the subsidiary of Elmo which in in the process of establishment on the condition that the previously described investment is converted into shares in Elmo.

-        Investment from Barolo Finants OÜ (registry code 11459279) in the amount of EUR 300,000, conditions of conversion:  EUR 5.5 per share, EUR 300,000 shall be converted into 54,546  shares, decision to receive repayment of the investment or convert it into shares must be made in March 2025 the latest, interest payable from the investment amount is 10% per year.

-        Investment from SAGGIS OÜ (registry code 12876571) in the amount of EUR 300,000, conditions of conversion:  EUR 5.5 per share, EUR 300,000 shall be converted into 54,545  shares, decision to receive repayment of the investment or convert it into shares must be made in March 2025 the latest, interest payable from the investment amount is 10% per year.

-        Mezzanine loan agreement between ELMO Rent Autojagamine OÜ and FlyCap Mezzanine Fund II AIF KS in the total amount of EUR 1,000,000 which is disbursed in two tranches, interest rate of 8% per year, additional interest rate of 6% per year added to the outstanding amount as at 31st December each year (PIK interest), repayment date of the loan amount is in second quarter of 2027. The loan is not secured with collateral. 

New shares will be issued upon conversion of the shares, for which the shareholders of Elmo will decide on the conditional increase of Elmo’s share capital. In accordance with articles of association of Elmo, the supervisory board of Elmo has given its consent to enter into the above financing transactions. 

“We are happy to contribute to an Estonian technology company such as Elmo which is one of the first in the world to put remote control technology based services into daily practical use. We see remote control technologies and the related services as a necessary step in bringing fully autonomous driving technologies into our daily life in the future,” said Ragnar Meitern, head of the lead investor’s representative Highgoal Capital Management OÜ (14982716). 

Highgoal Capital Management OÜ is a technology focused small alternative funds manager with a track record of identifying and backing some of the most successful founders and companies in the mobility business, their investment portfolio including Bolt and Planet42 among others. The company has experience in European, Middle Eastern and African markets and has offices in London and Tallinn. FlyCap Mezzanine Fund II AIF KS (Latvian registry code 40203206885) is a Latvian growth capital fund that offers growth capital to medium-sized companies in Latvia and elsewhere in Europe.  Barolo Invest OÜ and SAGGIS OÜ are Estonian capital based investors. The financing transactions were counselled by KPMG Baltics OÜ and Keystone Advisers osaühing.

“It is a great recognition to the current work of our team when experienced investors are willing to contribute to our success in today’s financial climate, and a sign that Elmo’s position is strong in the fast-growing sector of remotely controlled vehicles,” said Enn Laansoo Jr., the founder and CEO of Elmo.

“Although Elmo’s greatest competitive edge has so far been the development of the technology as well as the provision of a short-term rental service in one company, we will now be able to conclude the separation of the technology and the short-term rental business into subsidiaries in order to bring aboard new investors with a more specific focus,” added Laansoo.

Last year, Elmo became the world’s first deep-tech company to bring its road legal remotely controlled cars and drivers licenced by the Transport Administration’s into a real-life car sharing service. Remotely controlled cars have become a daily service on the streets of Tallinn as well as Tartu. For the purpose of licencing the technology, Elmo’s remotely controlled cars have been driven and introduced to customers in the streets of Paris, Munich, Hannover, Zurich, Vienna, Helsinki, Los Angeles and many other big cities. By today, there are ongoing negotiations with more than 50 customers interested in the licensed technology and preliminary work is in process to start driving on the public roads of at least two foreign cities this summer.

Elmo is an Estonian company whose main field of activity is the development of an innovative deep-tech technology for remotely controlled cars (see elmoremote.com) and the provision of eco-friendly car-sharing services (see elmorent.ee). Elmo is the first car rental company in Estonia to receive the quality label for sustainable business.

 

Additional information:

Enn Laansoo, Jr.

CEO

ELMO Rent AS

enn@elmorent.ee

phone: 5216858