Drone Volt

Drone Volt has adopted a strategy to reduce its debt through the emission of new stocks to better its financial structure. It has achieved the repayment of an expensive 12% interest rate bond of €800k and other convertible bonds and loans for a total value of €4.3m. Debt levels and associated interest rate have been adjusted downwards.

The NAV has been negatively impacted by the number of additional shares emitted through the execution of an equity line. Our estimates of shares outstanding by the end of the year were 235 million, and we now believe it will be closer to 268 million (currently 246 million).

Even if the cash generated through stock issuance reduces the debt and therefore the interest charge, the dilution stemming from the increased number of shares has more of an impact.