Press Release: Cinis Fertilizer gains owner with industry expertise in connection with capital raising

Cinis Fertilizer has resolved to carry out a capital raise for the continued ramp-up of the production facility in Örnsköldsvik. Through the capital raising, Cinis will gain an owner with international industry expertise, Adam Nawrocki, who has extensive experience in building and running successful production and sales of water-soluble fertilizers. In addition, Cinis’ partner and customer Van Iperen International is participating in a convertible loan. Cinis has also reached an agreement in principle with bondholders on certain amendments and concessions, providing a liquidity boost and improving the company’s capital structure.

Cinis Fertilizer is a Swedish fertilizer company producing an environmentally friendly and water-soluble mineral fertilizer, potassium sulfate (SOP). In May 2024, Cinis started up production in its first production facility in Örnsköldsvik, Sweden. The facility has an annual capacity of 100,000 tons of high-quality, environmentally friendly SOP. A little more than 18 months after ground-breaking, Cinis sent its first shipload of SOP to its customer and partner, Van Iperen International. The SOP has since been distributed and sold by Van Iperen International to end customers in more than 40 countries across all continents, with a very positive reception.

However, the start-up and ramp-up of the company’s production facility in Örnsköldsvik has taken longer than expected. To strengthen the company’s liquidity during the continued ramp-up of the production facility until it reaches profitability, Cinis has resolved to carry out a capital raise. The capital raise consists of directed share issues to Adam Nawrocki, founder of ADOB Fertilizers, a convertible loan to Van Iperen International and a rights issue offered to existing shareholders.

” We are grateful for the support from Van Iperen International and Adam Nawrocki. Their extensive industry knowledge and vast experience in the production and sale of specialty fertilizers will be a great asset to Cinis in our continued development. Their support is a clear indication that there is a promising future for SOP produced with fossil free electricity,” says Jakob Liedberg, CEO of Cinis Fertilizer.

In summary, the capital raise consists of directed share issues to Adam Nawrocki of SEK 16.2 million in two tranches. A directed convertible note issue to Van Iperen International of SEK 10.8 million, and a rights issue of up to 145 million shares at SEK 1 per share, of which SEK 70 million are guaranteed by bond holders.

“What I like most about Cinis is the continuous production process able to use by-products from, for instance paper- and battery factories that so far are often disposed in the environment. Additionally, the unique Cinis process significantly reduces energy needs and in Sweden, that energy is 100% fossil free. Cinis is a real asset for the European fertilizer industry”, says Adam Nawrocki.

“Our decision to support and strengthen Cinis financially shows our firm belief in the Cinis project to produce high quality, sustainable SOP in Europe. Our partnership will show the world that innovation and entrepreneurial courage have a future in Europe — and are needed more than ever,” comments Erik van den Bergh, Managing Director of Van Iperen International.

The bond holders have also agreed to convert one year’s interest payments into shares, corresponding to SEK 56 million, which will boost liquidity during ramp-up and improve the company’s capital structure. More details on the transaction structure can be found on Cinis’ website.

Together with its main process and technology supplier, Cinis has a clear plan on how to ramp up production over the next couple of months. During April and May 2025, a number of measures to improve plant capacity will be implemented together with the process and technology supplier with the aim of reaching full production capacity in 2025. In parallel, the company continues to work with initiatives that improve profitability, such as optimization of logistics and measures to reduce cost of input materials, MOP and sodium sulfate. This, together with production increases, is expected to lead to stable profitability.