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19-03-2021 10:34
DGKV advised the structuring and implementation of MYX AD convertible debt investment

DGKV advised the founders of MYX AD, a start-up focused on the generation and AI-powered analysis of "digital twins", on the investment structure and term sheet negotiations with institutional investor New Vision 3 Fund KD.

The investment amount came from a mixed group of co-investors, of which New Vision 3 Fund KD was the lead partner, utilising funding from the Fund of Funds. The total investment amount was €350,000. Following the signing of the term-sheet, DGKV advised all parties to the transaction in the process of preparation of a complete set of the transaction documents.

MYX received debt financing convertible into equity for the development of the company’s business. This transaction, alongside with two other convertible-debt-transactions in the same industry advised by DGKV in the past three months, set an industry precedent of structuring the investee company as a joint stock company, coupled with the issuance of convertible bond securities. In this way the investors acquire direct corporate control rights, in their capacity as bondholders, and thereafter the conversion of the bonds into equity happens almost automatically and cost-free. This novel structure comes to improve the typical industry model where investee companies are structured as limited liability companies and the “convertible” debt is issued as a common loan which then gets contributed into the company’s equity by way of in-kind contribution.

MYX works mainly in the telecom sector, generating and analysing highly accurate digital representations of telecommunications cell towers and other critical infrastructure. The company combines data from a variety of sources - satellites, piloted aircraft, drones and mobile phones - to create 3D virtual copies of the real world that can then be analysed with AI algorithms, to yield useful information, such as signal propagation, angle of antennas, tracking of broken parts, rust monitoring and others. The technology has the potential of becoming a game-changer in the industry, due to its extreme cost-effectiveness, high level of precision and the ease and speed of retrieval and analysis of information by artificial intelligence.

DGKV team was led by Partner Stephan Kyutchukov and included Associate Peter Angov.
Source: dgkv.com
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