The credit agreement is a revolving overdraft ceiling in amount of EUR1.8 million and is intended to finance the borrower’s working capital and current activity.
“The maturity is at 12 months with the possibility of extension, the variable interest is composed of EURIBOR 6M+2.15% per year. The guarantees established for this loan are: mortgage on the universality of the claims over clients of the borrower, mortgage on the bank accounts opened at Banca Transilvania and parental guarantee from Bittnet Systems SA. The withdrawals from the BT loan will ensure the pre-financing component for the IT&C integration projects, present and future, of Dendrio Solutions, thus strengthening the financing structure of the Group”, the report reads.
The Group’s management chose to explore the opportunity to borrow in foreign currency, considering the evolution of monetary policy interest rates over the last year, which led to the increase of interest on loans in RON.
Bittnet Group had a loss of RON557.500 in the first half of 2022, from a profit of RON1.6 million in the same period of 2021. Revenue from contracts surged by 45.3% to RON70 million.
Bittnet shares have lost 3% so far in 2022, amid deals worth RON32 million. The company has a market value of RON160 million and is 21% held by founders Mihai and Cristian Logofatu.