Kaleyra Secures $9.0 Million Loan from Intesa Sanpaolo

Additional $6 million of funding is expected to be received in the next few weeks

Buyback of Shares from Greenhaven Road Capital

NEW YORK & VIENNA, Va.–(BUSINESS WIRE)–Kaleyra, Inc. (NYSE American: KLR) (KLR WS) (“Kaleyra” or the “Company”) a rapidly growing cloud communications software provider delivering a secure system of application programming interfaces (APIs) and connectivity solutions in the API/Communications Platform as a Service (CPaaS) market, today announced that its subsidiary, Kaleyra S.p.A., has entered into a general unsecured loan agreement with Intesa Sanpaolo, S.p.A. of Italy in the amount of $9.0 million (the Loan was disbursed in Euros for an amount of €7.9 million with an exchange rate equal to 0.87602 at the signing date July 16, 2020). Proceeds are being earmarked to help accelerate Kaleyra’s growth.

The Loan Agreement has a maturity of 72 months from the date of disbursement and bears interest at a variable rate equal to the three-month Euribor plus a spread of 1.65%. The loan is to be repaid in 16 quarterly installments with a grace period of 24 months. The loan is guaranteed by SACE S.p.A., the Italian state-owned export credit finance agency, and is made pursuant to a program to address COVID‑19 and Italian Government support for Italian businesses.

An additional $6 million of funding from the same bank but with a guarantee from a second government agency is expected to be received by Kaleyra S.p.A. in the next few weeks.

“We are pleased to have the support of such a well-respected lender like Intesa Sanpaolo,” commented Dario Calogero, Kaleyra’s Founder and Chief Executive Officer. “As we continue to execute upon our strategy of building our communication platform/API, adding complementary products, technologies and customers, particularly in the U.S., we believe this influx of capital, when combined with the $32.75 million we secured in June, will be instrumental as we execute on our value-building initiatives.”

The Company has also agreed to complete the buyback of the remaining 539,548 shares of its stock currently owned by Greenhaven Road Capital Fund 1, LP and Greenhaven Road Capital Fund 2, LP under the Company’s Forward Share Purchase Agreement, for an aggregate purchase price of $6,212,711.60, which is $100,000 less than what the Forward Share Purchase Agreement would require the Company to pay in August for these shares. Following the settlement of the repurchase, substantially all the liabilities that the Company had upon the closing of the Company’s business combination with Kaleyra S.p.A. to make payments in the future pursuant to forward share purchase arrangements have either been pre-paid (as is primarily the case with the arrangement with Nomura Global Financial Products, Inc., which remains in place) or made, or have otherwise been discharged as a result of sales of shares into the market by counterparties to the forward share purchase arrangements.

Calogero added, “In a world that has had to grow increasingly more reliant on digital transactions, Kaleyra is well positioned, both strategically and financially, to further build out our platform, support enterprises and enable transactions in a secure and compliant manner, driving future growth.”

About Kaleyra

Kaleyra, Inc. (NYSE American: KLR) (KLR WS), is a global group providing mobile communication services for financial institutions and enterprises of all sizes worldwide. Through its proprietary platform, Kaleyra manages multi-channel integrated communication services on a global scale, comprising of messages, push notifications, e-mail, instant messaging, voice services and chatbots. Kaleyra’s technology today makes it possible to safely and securely manage billions of messages monthly with a reach to hundreds of MNOs and over 190 countries. For more information: https://www.kaleyra.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this press release are forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding future loans, the use of proceeds of borrowings, and Kaleyra’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “seek,” “plan,” “intend,” “believe,” “will,” “may,” “could,” “continue,” “likely,” “should,” and other words.

The forward-looking statements contained in this press release are based on Kaleyra’s current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Kaleyra’s actual results may differ materially from those contemplated by the forward-looking statements as a result of several factors including market risks and uncertainties, the availability of Italian government guarantees of loans, and other factors discussed in greater detail in its filings with the Securities and Exchange Commission. Any forward-looking statement made by Kaleyra in this press release speaks only as of the date on which Kaleyra makes it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for Kaleyra to predict all of them. Kaleyra undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.