Life is Hard wants to raise ten million lei through a bond issue

The software developer Life is Hard (LIH), listed on the AeRO market of the Bucharest Stock Exchange (BVB), wants to attract around ten million lei through a bond issue, the money to be invested in a similar company, according to issuer reports published on the website of our capital market operator.

The company will launch a public offer for 100,000 unsecured bonds with a nominal value of 100 lei, 10% annual interest, payable quarterly, and maturity in 2028. Investors will be able to subscribe at any price between 96 lei and 104 lei, including the ends of the range, the quotation step being one lei.

The final price of the offer will be determined on the basis of all valid subscriptions, so as to cover at least the amount of bonds set as the successful threshold of the offer, namely 50,000 bonds. The subscription period will end on April 15, with the intermediaries of the offer being BRK Financial Group and Goldring.

Investors who subscribe at a price higher than the closing price will receive a 100% guaranteed allocation, while investors who subscribe at a lower price will not receive allocations.

For subscriptions made at a price equal to the offer price, the pro-rata allocation mechanism will be applied. The sums resulting from the cancellation of orders placed at a price lower than the one in the offer will be returned to investors within five working days at most from the end of the market operation, as well as the differences between the subscription price and the final price for orders placed at a price higher than the one at which the market operation will be concluded.

"Life is Hard plans to build a strategic partnership, and this will be achieved by investing in a company with a similar profile. The value of this investment is estimated at two million euros and will be financed through the issue of bonds subject to the public offer", the prospectus states.

The securities will be listed in the Multilateral Trading System of BVB. Currently, the company has listed a bond issue worth 4.51 million lei, with maturity in 2025 and a fixed annual interest of 8%.

For last year, Life is Hard reported a preliminary turnover of 30.5 million lei, 21.7% above that of 2022, while the net profit amounted to 1.4 million lei, down 46, 3%, according to the information in the prospectus. On February 27, Ioan-Cătălin Chiş owned 29.6% of the software developer's shares, while Active Power Solutions had 27.8% of the company.