India-based Lava International Ltd has announced that it has signed an agreement with GEM Global Yield Fund LLC SCS, part of the Global Emerging Markets Group, for the investment of up to USD 90 million into the company over the period of next 36 months through a Share Subscription Facility, the company said.
The facility will allow the company to sell American depositary receipts to GEM in exchange for drawing down available funds and can be used entirely at the company´s discretion subject to certain requirements.
The company will use the funds to strengthen its business by funding its research, development and business expansion activities, with the objective of becoming a market provider of the sub-USD 150 cellular phone segment.
Global Emerging Markets is a USD 3.4 billion alternative investment group that manages a diverse set of investment vehicles focused on emerging markets across the world and have completed 370+ transactions in 70 countries. GEM´s investment vehicles provide the group and its investors with a diversified portfolio of asset classes that span the global private investing spectrum.
Lava International Limited is an Indian multi-national company in the mobile handset industry with a presence of over 20 countries, founded in 2009 and is primarily involved in designing, manufacturing & selling handsets (both feature phones and smartphones), tablets and accessories in India and abroad.