CEE Legal Matters

Category: Estonia

  • Deal 5: Kristel Leif on Solaride’s Solar-Powered Car Project in Estonia

    On November 18, 2020, CEE Legal Matters reported that Hedman Partners had agreed to serve as legal advisor to Solaride on its project to build a solar-powered car in Estonia. CEEIHM spoke with Kristel Leif, Chief Executive Officer at Solaride, to learn more about the matter.

    CEEIHM: Please tell our readers about Solaride and its mission. 

    Kristel: Solaride is a non-profit student project that is building Estonia’s first solar-powered car. First, we are aiming to race through the Australian desert in 2021 by taking part in the World Solar Challenge, where we will be competing with the world’s leading universities like Eindhoven University and MIT. 

    Second, Estonia is one of the last countries in Europe in terms of its use of renewable energy sources in the transport sector, and we want to change that as we give a damn about nature and the future. Besides that, this project gives our students the chance to put their knowledge into use. Mainly engineering students can get practical skills by working side by side with our mentors from leading technology companies. This means we are creating talent as well – not only as a potentially more experienced workforce in the engineering field but also with students themselves feeling more confident about their own future as they will enter the labor market with considerable experience. Through this, we are hoping we will bring Estonia to the world map regarding improvement in the renewable energy industry. 

    In conclusion, we are tackling the renewable energy field and the lack of an engineering workforce in Estonia. Looking at the progress so far, we are doing a great job of moving towards this larger goal. 

    CEEIHM: The project has some ambitious goals. What is your projected timeline at this point? 

    Kristel: At the moment we are making the last adjustments to the garage setting where we can finally start building the car. Right now, if everything goes according to plan, we can start testing the car on the road sometime in April. That suits us well as there will be enough sunshine in Estonia to actually carry out the test. We will use every minute to test in order to make the necessary corrections before heading off to Australia. 

    CEEIHM: What is Hedman Partners’ mandate? What type of legal assistance do you foresee you will require? 

    Kristel: We are more than glad that Hedman Partners decided to team up with us. As a result of the intellectual activity and creative work of the project participants, the authors of a specific development or research work have exclusive rights (personal and property) to their work. This is where we realized that we need a legal adviser to help us deal with the questions, like what happens to the intellectual property of a participant in the Solaride project, who actually owns it, and how it is going to be used. We are quite sure that several startups may arise from this project in the near future and, in that case, we need some advice as well. 

    In addition to intellectual property matters, Hedman Partners helps our organization in everyday corporate and commercial activities and helps to ensure that contracts with our partners are in order and confidentiality is maintained.

    CEEIHM: Since Solaride is a non-profit, student-run project, can you provide any insight as to the arrangement – commercial or otherwise – you’ve reached with the firm for its support? 

    Kristel: The firm is advising us on a pro bono basis. We deliver various marketing activities to our partners, as we have a very capable and ambitious PR & marketing team working every day to get us and the sponsors exposure in terms of marketing, fundraising, recruitment, etc. 

    There is no doubt that our partner company logo will be visible to millions across the world. Did you know that the World Solar Challenge has over 15 million viewers across the world? We are focusing on the target groups, channels, and activities that are important to our partners and we want our partners to be real members of our team. 

    Also, I would definitely like to bring out the fact that all the contracts are made by Hedman Partners so at least all our supporters will see and hear their name a lot. 

    CEEIHM: Last, but definitely not least, why was Hedman Partners the firm of choice for you? 

    Kristel: Hedman Partners is known as one of the leading law firms specializing in intellectual property, corporate matters, and startups working closely with entrepreneurs and investors within the technology sector. Although Solaride is a student project it is considered to be a startup as well and that’s our common ground with them. I think it’s a positive mark that Hedman Partners sees a lot of potential in this project and wants to contribute with its legal know-how.

    Originally reported by CEE In-House Matters.

  • Cobalt Successful for Lennuabi in Dispute with SmartLynx Airlines Estonia

    Cobalt has successfully represented Lennuabi in a dispute with SmartLynx Airlines Estonia.

    Lennuabi is an Estonian provider of assistance to passengers regarding recovery of flight-related compensations from airlines. According to Cobalt, “the court awarded compensations from SmartLynx Airlines Estonia for more than 80 passengers’ flights that were delayed or cancelled.”

    Cobalt’s team consisted of Senior Associate Lembit Tedder.

  • Karl-Erich Trisberg Becomes Equity Partner at Walless Estonia

    Karl-Erich Trisberg has been promoted to Equity Partner at Walless in Estonia.

    According to Walless, Trisberg specializes in M&A, business and contract law, and compliance. He began his career at the Estonian branch of Nordea Bank Finland in 2010. He moved to Tark Grunte Sutkiene in 2011, where he stayed for two years. He was with Freshfields Bruckhaus Deringer between 2015 and 2016 and with Ellex Raidla between 2013 and 2020. He joined Derling Primus in 2020, which joined Walless last October (as reported by CEE Legal Matters on October 2, 2020). Trisberg received his Master of Law and Business from the Bucerius Law School in 2015 and his Master of Law at the University of Tartu in 2012.

    “Advancement in our firm depends on performance, ability, and contribution to our common success, which is evidenced by Karl-Erich’s promotion to equity partnership,” commented Piret Blankin, Managing Partner at Walless. “What is more, Karl-Erich’s personal qualities make him an irreplaceable team player and a colleague who is always there for others,” she said.

  • Ellex Raidla Helps R8Tech Obtain EUR 900,000 in Funding

    Ellex Raidla has helped Tallinn-based R8tech obtain EUR 900,000 in funding from multiple investors.

    R8tech provides a digital building platform which monitors and optimizes indoor climate, detects faults in the system, and manages tasks for the property management company in shopping centers, office buildings, and other modern commercial buildings.  According to Ellex, the platform helps save between 10-20% of energy per property, which in return leads to reduction in CO2 emissions.

    The startup is active in 12 different countries across the EU, including Portugal, Finland, Austria, the Netherlands, and Poland. According to Ellex, it will use the funding to expand into new markets.

    Ellex Raidla’s team consisted of Partner Risto Vahimets and Counsel Antti Perli.

    Ellex Raidla did not reply to an inquiry about the deal.

  • Cobalt Advises Alexela Logistics on Acquisition of Majority Stake in Kotka Tank Storage

    Cobalt’s Riga office has advised Alexela Logistics on its acquisition of a majority stake in Kotka Tank Storage Oy.

    Financial details of the transaction were not disclosed.

    Alexela Logistics is a provider of logistics solutions for handling oil products in several Northern European ports.

    Kotka Tank Storage Oy operates a 250,000-cubic-meter cavern storage space in in Kotka, Finland. The company provides fuel oil, VGO, and diesel storage services.

    Cobalt’s team consisted of Partner Peeter Kutman, Specialist Counsel Jesse Kivisaari, and Assistant Lawyer Getter Villmann.

    Cobalt did not reply to an inquiry about the deal.

  • Cobalt Advises Nordic Aviation Group on Loan to Sihtasutus KredEx

    Cobalt has advised AS Nordic Aviation Group on a EUR 8 million revolving loan facility agreement with Sihtasutus KredEx.

    Nordica is a public limited company wholly owned by the Government of Estonia, which is engaged in organizing commercial flights and is the parent company of the biggest aviation group in Estonia. Sihtasutus KredEx is a financing institution established by the Estonian Ministry of Economic Affairs and Communications.

    According to Cobalt, “the loans to be made available under the agreement will be granted by Sihtasutus KredEx in the framework of support measures to alleviate the crisis arising from the pandemic spread of COVID-19 and the emergency situation declared in relation thereto. The loans may be used by Nordica to alleviate the damages caused by the COVID-19 crisis and the emergency situation and to cover the costs related to ensuring the sustainability of its operations. The granting of the revolving loan facility has been approved by a state aid permission from the European Commission and a resolution of the Government of Estonia.”

    Cobalt’s team included Partner Marina Kotkas and Senior Associate Mattias Tammeaid and Mart Blondal.

    Cobalt did not reply to our inquiry on the matter.

  • Deal 5: Warren.io’s Tarmo Tael on USD 1.4 Million Seed-Round Investment

    On November 10, 2020, CEE Legal Matters reported that Cobalt had advised Passion Capital on its USD 1.4 million seed-round investment into Warren.io. CEEIHM spoke with Tarmo Tael, Co-Founder & CEO at Warren.io, to learn more about the deal.

    CEEIHM: Please tell us about Warren.io and its history.

    Tarmo: Warren is a complete self-service cloud platform for regional infrastructure service providers.

    Established initially as a side project, Warren was incorporated in 2016 out of a need for a platform to manage e-commerce projects across different local data centers to host providers more efficiently. Discussions with these providers led to the development of a complete feature-rich platform, packaged as a service that manages everything between the hardware and the end-users.

    The long-term goal is to unite local infrastructure providers into a coherent network. The network will enable local cloud providers to accommodate clients with international reach through automatically cross-selling resources. The end-user can consume all underlying infrastructure through a single API and user interface.

    CEEIHM: What was it about your business model that made it particularly attractive for Passion Capital?

    Tarmo: It’s best to answer this with a quote from Giuliano Sison of Passion Capital, who said, “we’re thrilled to be partnering with Warren in order to enable local cloud providers to offer best-in-class provisioning and service reliability to their customers. This market continues to grow at a phenomenal rate and Warren is perfectly positioned to serve that at great scale.”

    CEEIHM: What is the USD 1.4 million intended for?

    Tarmo: The new funds will be used to further develop the scaling capabilities of the platform to support larger deployments, automate expansion of each location, and onboarding more service providers in even more markets.

    CEEIHM: How was the deal initiated? Did you seek out potential investors or were you approached? if the first, how did you identify Passion Capital as the right investor?

    Tarmo: We were looking for investors who understood the vision and were focused on the long-term goal. We see that many of the early-stage investors today are short-term focused, which is understandable as it seems less risky, but that just doesn’t work for us, considering what we aim to do. Our discussions with Passion Capital focused on the long-term goals and strategies right from the start, and that felt like a breath of fresh air.

    CEEIHM: Why did you turn to Hedman Partners for assistance on this matter and what was their mandate specifically?

    Tarmo: We have worked with Headman Partners from quite early on. They helped us back when we raised angel funding and they were very professional and agile at the same time. The process was well organized and smooth regardless of the complications brought by the COVID-19 outbreak. The firm facilitated all legal conversations with everyone involved and prepared all paperwork from employee and IP agreements to shareholder agreements.

    Originally reported by CEE In-House Matters.

  • Ellex Raidla and TGS Baltic Advise on Sale of Estonian Gas Company to De Maria Project

    Ellex Raidla has advised Capital Mill and Estmak Capital on their sale of the Energate gas company  to the De Maria Project investment company. TGS Baltic advised the buyer on the deal.

    Financial details of the transaction were not disclosed.

    Energate is a provider and distributor of natural gas to over 2,600 household and commercial customers through its own network in 14 exclusive network areas in Estonia.

    Capital Mill is an Estonian company founded in early 2008 that helps investors acquire commercial real estate in the Baltics.

    Ellex Raidla’s team consisted of Partner Ermo Kosk and Senior Associate Sandra Vark.

    TGS Baltic’s team included Partners Kadri Kallas and Kirsti Pent, Senior Associates Anu Kirss, Mari-Liis Orav, Triinu Jarviste, Vitali Sipilov, and Junior Counsel Mirko Kikkamagi.

  • Cobalt and Hedman Partners Advise on USD 1.8 Million Investment in Fyma

    Cobalt’s Tallinn office has advised early-stage investment fund Change Ventures on its investment in Tallinn-based computer vision startup Fyma. Hedman Partners advised Fyma on the deal.

    According to Cobalt, Fyma attracted a total of USD 1.8 million in the seed round from investors Change Ventures, 7 Percent, Decacorn, Lemonade Stand, Tiny VC, and Superangel. According to the firm, Fyma will use the funding to grow its team and to launch new pilot programs for its software.

    Fyma is an Estonian provider of computer vision AI analytics services, which turn any CCTV camera into a sensor for gathering real-time data.

    Cobalt’s team included Partner Kristel Raidla-Talur, Senior Associates Greete-Kristiine Kuru and Sven Bottcher, and Assistant Lawyer Johanna Lumiste.

    Hedman Partners’ team was led by Partner Valter Vohma.

  • The Buzz in Estonia: Interview with Kadri Kallas of TGS Baltic

    “Since the spring of 2019 we have had a new parliament and government,” says Kadri Kallas, Partner at TGS Baltic in Estonia. “Much like in a number of countries around the world we have a populist party in our government. However, the party which had most votes was unable to form the government, so the second-ranked party, along with two others, formed it instead.” 

    “The government is now proposing to have a national referendum regarding whether marriage should remain a union between a man and a woman,” she says, noting that such an amendment would not be in line with Estonia’s Nordic and Western partners. “We used to be described as a country aspiring to the Nordic way of life in terms of openness and tolerance, but the government is now taking us back to Soviet times,” she sighs. 

    Estonia is also making significant changes to its pension system, Kallas reports, explaining that a decision to make contributions to the pension system voluntary has recently been upheld by Estonia’s Constitutional Court. “Our pension system is built on three pillars,” she says. “The first pillar is for people who cannot rely on the other two; it is very basic, and provides only the bare minimum.” Contributions to the second pillar used to be compulsory, and once payment was made, funds could not be withdrawn from the system before retirement. However, that has now changed, Kallas says, meaning that those who choose only to rely on the first pillar may find its resources insufficient. 

    Estonia’s economy has faced its ups and downs recently, though Kallas reports that certain industries weather the storm better than others. “Everything which can be done remotely, such as delivery services and Internet companies, is thriving,” she says, although she reports that the country’s tourism sector suffered greatly during the pandemic. “The government of Estonia was more conservative than, say, that of Latvia or Lithuania, and it has not provided additional meaningful help to the tourism sector, past the initial aid package at the beginning of the pandemic,” she says, noting that the most recent aid package was valued at only EUR 2.1 million, which, she says the tourism sector has viewed as “extremely meagre.”

    In terms of big transactions, Estonia has gotten back on track since the autumn, Kallas says. “The lockdown that was imposed when the first wave of the pandemic hit stopped a number of transactions,” she says. “However, once people got over the initial shock, they started adapting.” 

    Kallas reports that the most significant change in the Baltic legal market recently was the Estonian and Latvian offices of Primus Derling joining and rebranding as Walless, with the Lithuanian Primus going its separate way.