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Heramba Electric's January 2025 Financial Report: Key Transactions & Risks Revealed

$PITA
Form 6-K
Filed on: 2025-01-17
Source
Heramba Electric's January 2025 Financial Report: Key Transactions & Risks Revealed

Key Information and Insights from the Financial Report:

  1. Report Overview:
  • Type: Form 6-K (Report of Foreign Private Issuer)
  • Filing Date: January 16, 2025
  • Reporting Period: For the month of January 2025
  • Commission File Number: 001-42193
  1. Company Information:
  • Name: Heramba Electric plc
  • Principal Executive Office Address: Kiepe Platz 1, D-40599 Düsseldorf, Germany
  1. Business Transactions:
  • On February 6, 2024, KB GmbH sold 85% equity in Kiepe Electric GmbH to Heramba for an initial purchase price of EUR 4,800,000.
  • KB US transferred ownership of Kiepe Electric LLC to Heramba Holdings as part of the same transaction.
  1. Demand Letters:
  • On January 9, 2025, Heramba received demand letters from KB GmbH for payment of certain amounts under the Share Purchase Agreement. The claims include:
    • Adjustments to the Initial Purchase Price: EUR 8,370,000 (plus 9% interest)
    • An earn-out of EUR 15,000,000 based on revenue milestones for Kiepe in 2023 (plus 9% interest)
    • Monthly collateral fees totaling approximately EUR 1,485,000.
  1. Company's Response:
  • Heramba has contested the demanded amounts and proposed further discussions to resolve the issue. However, there is uncertainty regarding the resolution.
  • The company is assessing its options and may pursue legal remedies if necessary.
  1. Financial Implications:
  • If Heramba cannot satisfy the ongoing obligations under the Share Purchase Agreement, this may materially impact its liquidity, financial condition, and operational results.
  • The potential for a default under the Share Purchase Agreement could trigger cross-default provisions in other agreements, further exacerbating financial risks.
  1. Forward-Looking Statements:
  • The report includes forward-looking statements regarding the resolution of the Demand Letters, highlighting the inherent risks and uncertainties.

Conclusion:

This report outlines significant business transactions involving Heramba Electric plc and potential financial liabilities stemming from demand letters related to a recent acquisition. The outcomes of these disputes could have critical implications for the company’s financial health and operational stability moving forward.