Mainebiz: Pandemic adversity, GO Lab response has company in much stronger position
GO Lab’s ability to pivot and make changes to its financial strategy in the early stages of the pandemic left the company in even stronger shape than it was before the crisis, reports Mainebiz in a feature story for the publications April banking and finance issue.
When the pandemic, and subsequent economic downturn, derailed an investment deal anchored by New Market Tax Credits and a European strategic partner, GO Lab’s financial team quickly changed gears. The company brought in many new domestic investors, hired a chief marketing officer and moved to a financing strategy anchored by $30 million in equity and $85 million in conduit bond financing through the Finance Authority of Maine’s Revenue Obligations Securities Program. The new financing arrangement will allow GO Lab to move to full production on a faster timeframe, with all three of its manufacturing lines scheduled to be up and running by late next year.
“We’ve found investors who’ve brought a lot to our project that we didn’t have before,” says GO Lab Co-founder Matt O’Malia. “It’s a really good deal for us. It puts us in so much a better position than we were.”