Smart Eye entered into an agreement on market terms with an independent credit market actor group, enabling the company to secure a total credit facility of SEK 150 ($14.52) million and increase its unused credit limit from SEK 82 ($7.94) million to SEK 232 ($22.46) million.
The credit facility has been arranged with the purpose of creating financial buffers, should the economic climate continue to negatively impact new car sales. Additionally, it ensures that Smart Eye can proceed with its expansion plans, including further development of new products and potential acquisitions.
“We have proactively decided to increase our credit limits as global new car sales are currently not meeting the expected levels. We must acknowledge the risk that this may continue to affect the growth rate of our licensing revenues,” Martin Krantz, CEO of Smart Eye, said. “We remain optimistic about the development of Smart Eye’s licensing revenues in both the short and long term, benefiting from multiple car models and several manufacturers. The legislation (ADDW) that came into effect in mid-2024 requires customers to adapt all European car models by 2026. Increasing the credit limits also provides additional security, complementing our previously communicated focus on cost control.”
