Under the terms of the SSF, Balluun will have the right, from time to time and during a period of up to 3 years, to request that the Investors subscribe for its common shares for total proceeds of up to CHF 40 million, subject to certain liquidity conditions. Under the SSF, the Investors undertake to subscribe to or acquire the Company’s common shares upon Balluun’s exercise of a Draw Down Notice. Balluun will control the timing and maximum amount of any Draw Down, and has the right, not the obligation, to draw down on the full Commitment Amount up to CHF 40 million.
Avalon Securities Ltd. (“Avalon”) acted as Balluun’s financial advisor to arrange the SSF and continues to work with the Company regarding its strategic plans for a SIX Swiss Exchange listing and a future NASDAQ listing. In addition, Avalon has been retained by Balluun to raise up to CHF 15 million in a pre-listing private placement.
Balluun intends to use the proceeds of the SSF and private placement financing to rapidly identify and launch new industry domains and subsequently build a sustainable subscriber base and advertising revenue stream, as well as to continue to improve Balluun365, the Company’s SaaS technology platform. Balluun is headquartered in Zurich, Switzerland also has offices in Silicon Valley and New York in the U.S. and also in Lausanne, Switzerland.
“A few years ago, we set out to make B2B commerce more social and simpler,” said Roland Kümin, CEO of Balluun. “Today’s B2B solutions remain mostly focused on pure transactional e-commerce, do not take into account that B2B sales can be complex and are primarily the result of an online discovery process coupled with on-going conversations between buyers and suppliers. This process creates the need to build trusted relationships before a transaction can take place. As we are experiencing with our current domains that serve the fashion and toy industries, constantly occurring new product introductions drives the need to facilitate improved communications between buyers and suppliers. Our investments in technology and marketing enable Balluun to monetize this growing need on a global scale. We are uniquely positioned to take advantage of the vast amounts of opportunities across industries to change the way business is and will be done in the future. We are therefore very pleased to have secured this CHF 40 million SSF from GEM and announced our intention to list on the SIX Swiss Exchange. The SSF, combined with the potential CHF 15 million pre-listing private placement, will provide us with sufficient capital to take advantage of several short- to mid-term growth opportunities.”