LIFE IS HARD S.A raises 2 million euros from the capital market for a new strategic acquisition

Until April 15, 2024, LIFE IS HARD offers the opportunity for anyone wishing to join the company’s strategic development plan to do so through a bond issuance. The LIFE IS HARD bonds, with an attractive interest rate of 10%, aim to attract resources for financing a new strategic acquisition process. This acquisition is part of LIH’s growth strategy initiated in 2021, which has been validated by the strong financial results of the past three years.

Over the past three years, as a result of the implementation of the strategy, LIH’s turnover has experienced an impressive compound annual growth rate (CAGR) of +62% (2020-203), and the profit has exceeded this growth rate, with a CAGR of +80.5% during the same period.

With a Rule of 40 score of 126%, LIFE IS HARD currently ranks among the top IT companies listed on the Bucharest Stock Exchange (BVB), on the AeRo market.

“This corporate bond issuance, a step in LIH’s strategic development initiative, is an indicator that LIFE IS HARD is in the midst of an accelerated growth process, with investments in business performance and expanding the operational capacity of the entire LIFE IS HARD business ecosystem. Through this issuance, we plan to establish a strategic partnership by investing in a company with a similar profile to LIFE IS HARD.

The value of this investment is estimated at 2 million euros, and at the General Shareholders’ Meeting scheduled for April 29, 2024, we are requesting shareholders to increase this budget by an additional 1 million euros. We are financing all these strategic endeavors using the mechanisms of the capital market to give everyone who wants to be part of the LIH story the chance to join us in writing it together,” says Cătălin Chiș, CEO and Chairman of the Board of LIFE IS HARD S.A.

In this operation, LIFE IS HARD S.A. (LIH) is issuing, through a Public Offering, 100,000 bonds with a nominal value of 100 RON/bond, with a maturity of 4 years (16 quarters) from the issuance date and an annual interest rate of 10%, payable quarterly. The maximum total nominal value of the issuance is 10,000,000 RON.

The bond issuance is conducted from 02.04.2024 to 15.04.2024 through BRK FINANCIAL GROUP S.A. and Goldring S.A.

All details related to the issuance are available at:

• LIFE IS HARD website: https://www.lifeishard.ro/relatia-cu-investitorii/
• The issuer’s profile on the Bucharest Stock Exchange website: https://bvb.ro/info/Raportari/LIH/LIH_20240329082620_26-Raport-curent-OBLIGATIUNI.pdf

Over the past 20 years of activity in the Romanian market, the company has been a strategic technological partner in the digital transformation of local companies and institutions. With a top team focused on service quality, the use of state-of-the-art technologies in products and solutions provided to customers, and the enhancement of consultancy skills within its own teams, LIFE IS HARD has significantly contributed to the growth of the insurance market in Romania over the last two decades.

LIFE IS HARD continues its impressive ascent, consolidating its position in the market and confirming the directions set in previous years. The company concluded the year 2023 with remarkable performance, recording a net profit of 6.4 million RON, representing a growth of 38.33% compared to 2022. This exceptional performance is primarily fueled by the prosperity of the Insurance division, which led to a 21.68% expansion in LIFE IS HARD’s turnover, with the 24Broker platform reaching nearly 1 billion EUR GWP (Gross Written Premiums) by the end of 2023.

Building upon the solid foundation established in the insurance industry and the remarkable financial health of the entire business ecosystem, LIH will begin regional development in parallel with expansion into multiple points of the digitalization value chain in Romania. Through impactful solutions, LIH will significantly contribute, both now and in the future, to the growth of local and regional insurance markets and will remain a key partner in business digitalization.

About LIFE IS HARD and the business ecosystem (www.lifeishard.ro) 

LIFE IS HARD SA (LIH) is the first Romanian software company listed on the BVB, AeRo market, Premium segment, and since 2021 is part of the BET AeRO index.  

The company has been in business for 20 years, and in 2020 it entered a process of accelerated growth through acquisitions and mergers, which significantly increased its financial results and market position. Thus, LIFE IS HARD integrated the goodwill of Active Power Solutions (APS) and TreeComm, both B2B telecommunications distributors, and acquired 40% of Performia Finance (financial services) and 100% of Innobyte Solutions (e-Commerce). 

In 2022, the company founded LIH Ventures, an innovation arm for insurance and related fields through which it aims to support investments in startups with regional scaling potential. LIFE IS HARD’s business ecosystem work is focused on digitalization for companies and communities, with an increased focus on the insurance industry and SMEs.