The Company was established in 2007 and is an experienced and well-known producer of premium chocolate products in Latvia. Although historically the Company has produced a wide range of chocolate sweets, currently, it is focused on truffles only. Around 55% of all the goods produced by the Company are exported to more than 20 countries worldwide. In addition to branded truffles, the Company provides private label production services as well. The core customer base of the Company is formed by reputable and well-known international retailers and is well diversified. In 2015 the Company has attracted an investment of EUR 1,4 million from BaltCap Venture Investment Fund (hereinafter – BaltCap) to ensure further expansion.

In April 2022 the Company received a sizeable export order from its regular customer Costco USA. With the help of previous loans issued by Capitalia the Company already has completed and shipped all goods to the USA. However, the Company could not agree on prepayments with another buyer to timely cover the remaining expenses related to the Costco USA order. Therefore, the Company is seeking additional financing of EUR 101,500 for 2 months. The financing will be used for final settlements with suppliers for chocolate, fillings, and packaging as well as for transportation and customs clearance services related to the order. Investors are offered 14.88% annual (1.24% monthly) interest with monthly interest payments and principal repayment at the end of the term. Costco USA is the second biggest retail chain globally and the Company has successfully executed similar seasonal orders to this customer for the last 3 years. Loan repayment is tied to incoming payments from the execution of the Costco order at the beginning of October 2022.

In May and June 2022 Capitalia issued two financing tranches to the Company for a total amount of EUR 243,600 to finance the execution of the same order. By receipt of the current tranche, the Company will cover all the remaining costs related to the Costco order and no other financing tranches are planned.

The Company is an existing client of Capitalia and has repaid EUR 500,000 of similar project financing loans.

Note about the war in Ukraine impact on the Company

The Company’s clientele mainly is located in Latvia, Western Europe, and the USA. The Company had insignificant exposure with a Ukrainian buyer and had no customers, suppliers, or partners in Russia or Belarus.

Ir vairāki faktori, kas padara Uzņēmuma kreditēšanu par pievilcīgu iespēju:

• The Company has been operating in the industry for over 13 years with well known and established local brand.
• The Company has successfully executed similar export orders of the same customer for the last 3 years and risks related to the execution of the order are minimized throughout the cooperation.
• The Company is a repeat client of Capitalia having repaid EUR 500,000 of project financing loans on time.
• The Company has reputable and well-diversified international customers that allow it to build on its export volumes.
• Support and supervision of an experienced venture investment fund BaltCap.
• Repayment of the loan is tied to incoming payments from the execution of a certain export order of Costco.
• The Company already has produced and shipped the order to the customer.