Financing includes upfront funding of $1.5 million to enhance
COLUMBIA, MD – June 26, 2023– GSE Solutions (“GSE Systems, Inc.” or “GSE”) (Nasdaq: GVP), a leader in advanced engineering and workforce solutions that supports the future of clean-energy production and decarbonization initiatives for the nuclear power industry, today announced it has entered into a follow-on financing with The Lind Partners, which will be in the form of a convertible security with a term of 24 months. The offering is for a total of $8 million, with upfront proceeds of $1.5 million upon closing and up to an additional $6.5 million, funded in minimal increments of $1 million and subject to mutually agreed terms. Repayment of the new $1.5 million in proceeds will commence in one year and at that time will be repaid in 12 monthly installments.
In conjunction with this offering, The Lind Partners have agreed to amend certain terms of the initial convertible note entered into February 28, 2022, by extending the current outstanding balance by five months, so remaining balance will now be repaid in 12 monthly installments.
“We are appreciative to The Lind Partners on providing additional access to capital along with amended terms to our original offering. These funds and amended terms will offer the company additional liquidity as we look to close new business, while making sure we manage costs as tightly as possible. We are grateful for the relationship with and support of Lind,” stated Kyle Loudermilk, President and CEO of GSE Solutions.
“Lind is excited to assist GSE with additional access to capital. The company has had some solid recent contract wins and is well positioned to scale its business as the nuclear sector re-focuses on facility improvements and capital upgrades. There is long term momentum in place partially driven by the Inflation Reduction Act in August of 2022, which includes a federal tax credit for zero-emission nuclear power generation; and the Infrastructure Investment and Jobs Act, signed into law November 2021 which allocates $1.2 billion per year through 2026 for the DOE to aid existing nuclear facilities to extend their operating life,” said Phillip Valliere, Managing Director at The Lind Partners.
For more detailed description of the transaction, please refer to the Company’s Form 8-K filed with the U.S. Securities and Exchange on June 26, 2023.