REC Silicon - Announces the Close of a USD 7.0 million Short Term Loan with Hanwha International LLC

Summary by AI ^BETAClose X

REC Silicon Inc. announced a USD 7.0 million short-term loan agreement with Hanwha International LLC to address urgent operational capital needs. This loan represents the fourth amendment to an existing USD 103.0 million short-term loan, initially established on January 24, 2025, and subsequently amended on February 5, 2025, July 18, 2025, and August 11, 2025. The maturity date for the amended loan remains January 24, 2026. REC Silicon anticipates requiring additional financing beyond this loan to meet debt service and operating cash flow needs for the year, potentially from Hanwha or other sources, though no arrangements are yet finalized.

Disclaimer*

Moses Lake, Washington, USA – September 3, 2025 – REC Silicon Inc, a wholly owned subsidiary of REC Silicon ASA (“REC Silicon”), announced today that it has entered into a USD 7.0 million short-term loan agreement with Hanwha International LLC to fund the company’s urgent operational capital needs.

Hanwha International LLC is a subsidiary of REC Silicon’s two largest shareholders: Hanwha Solutions and Hanwha Corporation.

This loan was executed through a fourth amendment to the existing USD 103.0 million short-term loan, which originally closed on January 24, 2025. It was subsequently amended for the first time on February 5, 2025, for the second time on July 18, 2025, and for the third time on August 11, 2025. The maturity date of the amended loan remains January 24, 2026, consistent with the original loan.

REC Silicon does not have sufficient available cash to meet debt service and other anticipated operating cash flow requirements for this year without the continued support of the major shareholder, Hanwha, or additional sources of capital. Therefore, it will soon require additional financing beyond this loan, either from Hanwha or from other sources of capital, none of which have yet been finalized or guaranteed.