June 16 (SeeNews) - Bulgarian IoT company Allterco [BUL:A4L] said that its board has approved funding to its wholly-owned subsidiary Allterco Robotics US in the amount of 1.5 million US dollars (1.4 million euro), a third of which will take the form of a capital increase.
Allterco Robotics will also receive an additional investment loan of 1.0 million US dollars for the duration of one year, at an annual interest rate of 1.0%, the Bulgarian company said in a bourse filing on Wednesday.
The capital increase will total 0.5 million US dollars and is subject to a registration procedure in accordance with local legislation.
The additional funding will be deployed to expand the subsidiary's sales team in the US, to cover temporary liquidity needs as well as to ensure further working capital for the development of the business in the North American market, Allterco explained in the statement.
According to Allterco's first-quarter financial report, the company owned 100% in five companies, two of which - Allterco Robotics US and Germany-based Allterco Europe - are registered outside Bulgaria. The Bulgarian company also owns 30% of China-headquartered Allterco Asia Ltd, with an option to reach ownership of up to 80%.
In 2021, Allterco increased the capital of its Bulgarian unit Allterco Robotics to 7 million levs ($3.7 million/3.6 million euro) from 1.5 million levs, through the issuance of 5.5 million shares of 1 lev par value each.
Last month, Allterco said that its consolidated net profit, excluding minority interest, decreased to 3.9 million levs in the first quarter of 2022 from just over 4 million levs in the same period of 2021, despite a 14% rise in revenue.
Earlier in June, Allterco said that it plans to acquire Slovenian sector player GOAP d.o.o. Nova Gorica for around 3.3 million euro ($ 3.45 million) so as to broaden its product portfolio and enter new markets.
($ = 0.9332 euro)