The Board of Directors and management team of Goodbye Kansas Group has agreed on several financing facilities to support the continued growth of the Company. The Financing Package will be used to execute the new strategic direction announced on 6 May 2021, positioning the Company for profitable growth in 2022 and beyond. The strategy includes, for example, the launch of the location-based mobile game Hello Kitty in 2022, continued acceleration in Goodbye Kansas Studios, continued product development of own IP’s and scalable solutions.
“After evaluating different financing alternatives, we have in LDA Capital found an international investment partner that can provide flexible and non-restrictive capital as well as facilitating strategic partnerships within key client segments” says Per-Anders Wärn, Chairman of the Board, Goodbye Kansas Group
Financing Package in brief
- Equity Commitment of up to SEK 175 million from LDA Capital
- Loan facility of SEK 36 million from some of the Company’s major shareholders and other investors
- Loan facility from Nordea of SEK 15 million
LDA Capital is a Los Angeles-based global investment group with expertise in cross-border transactions in the corporate technology sector, visualization, and SaaS. LDA Capital has a large network in the technology sector and aims to support Goodbye Kansas Group’s growth plans through its strategic partnerships in the film- and TV-industry. LDA Capital has undertaken to provide the Equity Commitment, enabling capital calls of up to SEK 175 million in aggregate within a three-year period in exchange for new ordinary shares in Goodbye Kansas Group. The capital calls are fully optional for Goodbye Kansas Group and will be exercised on the Company’s full discretion.
“Visual content is a particularly dynamic industry offering strong growth opportunities. We are highly impressed by Goodbye Kansas innovative digital experiences and solutions for the entertainment industry and beyond, proven by its international track record in the film- and TV industry. We are convinced of the great potential in Goodbye Kansas Group which we believe have reached a key phase for future profitable growth,” says Anthony Romano, Co-founder LDA Capital
Some of the Company’s shareholders and other investors, including Chairman of the Board Per Anders Wärn and the largest shareholder Johan Karlsson, have provided a loan facility of SEK 36 million with a tenor of 12 months (the “Loan Facility”). Nordea has provided a new loan facility of SEK 15 million with maturity in January 2022 (the “Nordea Facility”).
The financing agreement previously announced in October 2020 with Nice & Green has been terminated without any utilizations. The financing agreement has not resulted in any costs for the Company.
The Equity Commitment
The financing agreement with LDA Capital gives Goodbye Kansas Group the right, but not an obligation, to raise capital in through issuance of new ordinary shares from LDA Capital every 30 trading days. The amount to be subscribed will be determined by Goodbye Kansas Group and depends on certain parameters such as the trading volume during the previous 15 trading day period prior to the day of issuance of a notice. The subscription price will be determined by the volume weighted average price (“VWAP”) of the Company's shares during a 30-day pricing period following the day of issuance of a notice and fixed at 90 percent of the price implying a 10 percent discount. The Company may also, at its sole discretion, determine a floor price for the VWAP, meaning that the VWAP will exclude days falling below such floor price. The new shares issued will have the same rights as other ordinary shares and will be admitted to trading on Nasdaq First North Growth Market.
As part of the Equity Commitment provided by LDA Capital, the Company also undertakes to issue 5,000,000 warrants with a strike price of 2.93 and a tenor of 36 months (the “Warrants”). LDA Capital may choose to exercise the Warrants at any time during the term of the Warrants, to subscribe for ordinary shares in the Company. If all Warrants are exercised, the Company will receive SEK 14.7 million and issue 5,000,000 new ordinary shares, which would result in a dilution of 4.4 per cent based on current number of outstanding ordinary shares in the Company.
LDA Capital's ownership in Goodbye Kansas Group may not exceed 19.9 per cent of the total share capital. As LDA Capital seeks a non-controlling stake, they will not ask for representation in the Board of Directors.
The Loan Facility
The Loan Facility amounts to SEK 36 million and has a tenor of 12 months. Of the SEK 36 million, SEK 16 million are converted from existing loans incurred in 2020, meaning that the Loan Facility will provide the Company with net SEK 20 million of new capital. The interest rate amounts to 10 percent and will be capitalized, meaning that there will be no cash interest payments during the term of the Loan Facility.
The Nordea Facility
The Nordea Facility amounts to SEK 15 million with a maturity in January 2022. In connection with establishing the Nordea Facility, the Company will also repay the existing loan facility of SEK 25 million provided by Nordea.
Advisors
ABG Sundal Collier acted as financial advisor and Baker McKenzie acted as legal advisor to Goodbye Kansas Group in connection with the Financing Package.
For further information, please contact:
Peter Levin, CEO and Managing Director, Goodbye Kansas Group
e-mail: peter.levin@goodbyekansas.com Phone: +46 (0) 73 041 63 93
Anders Lundström; CFO
e-mail: anders.lundstrom@goodbyekansas.com, Phone: +46 8 502 312 74
About LDA Capital
LDA Capital is a global alternative investment group with expertise in complex, cross-border transactions. The founders of the company have extensive experience in international investments and the team has collectively executed more than 200 transactions in over 43 countries with aggregate transaction values of over USD 10 billion. LDA Capital has recently completed several investments in corporate technology companies, including investments in cybersecurity, artificial intelligence, and SaaS companies. For more information visit: www.ldacap.com or email at info@ldacap.com.
Goodbye Kansas Group
Goodbye Kansas Group AB (publ) is a leading company in visual content and emerging technology. The company creates award-winning visual experiences for all media and offers products and solutions with the possibility to scale, combining cutting-edge technology with world-class artistry. Services include VFX, Virtual Reality (VR), Augmented Reality (AR), Performance Capture & Scanning, Real Time expertise, Design, Animation, production of Game Cinematics, Digital Humans and development of IP’s & scalable products.
The Group comprises of: Goodbye Kansas Studios (Visual experiences for film, TV and games), Infinite Entertainment (Film/ TV co-productions & IP development), Vobling (Virtual training and XR) Sayduck (3D/AR SaaS solutions for e-commerce), Virtual Brains (Location based mobile games) and Plotagon (3D animation film engine). Goodbye Kansas Group is listed on the Nasdaq First North Growth Market and has studios and offices in Stockholm (HQ), London, Helsinki, Vilnius, Belgrade, Los Angeles, Beijing & Manila.
The company has G&W Fondkommission as Certified Adviser, Kungsgatan 3, Stockholm, Stockholm, email: ca@gwkapital.se, phone. +46 (0)8-503 000 50.
Forward-looking statements
This press release contains forward-looking statements that reflect the Company's intentions, beliefs, or current expectations about and targets for the Company's and the Group's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company and the Group operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "intend", "may", "plan", "estimate", "will", "should", "could", "aim" or "might", or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq First North Premier Growth Market rule book for issuers.
GOODBYE KANSAS GROUP AB 
