CEE Legal Matters

Category: Lithuania

  • Sorainen Advises Lewben Art Foundation on Public Tender for Art Gallery Premises

    Sorainen has advised the Lewben Art Foundation on a public tender for the lease of premises for an art gallery in Vilnius.

    According to Sorainen, “following the announcement of the Lewben Art Foundation as the winner of the public tender, it is planned that a modern Lithuanian and international contemporary art and education center will open its doors in 2022.”

    The Sorainen team working on the matter was led by Partner Ausra Mudenaite, and included Senior Associate Lina Barniskiene and Legal Assistant Simonas Slitas.

  • Deal 5: Paymont CEO Stefan Koscelnik on Securing an Electronic Money Institution License in Lithuania

    On February 1, 2021, CEE Legal Matters reported that Adon Legal had helped Paymont obtain an Electronic Money Institution license from the Bank of Lithuania. CEEIHM spoke with Stefan Koscelnik, CEO at Paymont, to learn more about the matter.

    CEEIHM: Could you begin by telling our readers a bit about Paymont?

    Stefan: Paymont, a member of Czech Republic-based Ronda Holding group, is our new project specialized in providing payment services on a European scale. Paymont UAB is a Lithuanian entity with the aim of becoming a European provider of payment services as the markets are becoming more and more connected, especially within the EEA. Paymont means Payments-On-Time, which is our motto. By using modern technologies in connection with the pro-business environment in Lithuania we would like to deliver the product not only on time but also with high standards.

    Paymont will focus on SME clientele and our strategy will be to support international businesses in their activities by facilitating cross-border payments for competitive prices. We come from Central Europe, where the market is dominated by the high street banks which seek to minimize their risk exposure and continue de-risking (rather than otherwise mitigating/managing the risks), therefore the offer of payment services for SMEs doing international business is limited. This creates new opportunities for other payments service providers as we can implement a more individualized approach to each potential/existing client. This is the market gap we have the ambition to fill,and that is the reason why we have entered the FinTech industry in Lithuania.

    CEEIHM: Adon Legal recently helped your company obtain an Electronic Money Institution license from the Bank of Lithuania. What made Paymont decide to expand to Lithuania?

    Stefan: The decision to apply for a license in Lithuania was based on an observation of trends in the financial market and on a business environment search of EEA countries. The Lithuanian government has been doing a great job in creating an innovative infrastructure and progressive regulation for the FinTech industry which leads to more and more new participants coming to the country. Another important incentive for us was the approach of the Bank of Lithuania, which provides FinTech companies with the same opportunity to connect to the SEPA infrastructure as it does traditional banks. A two-hour flight distance from Prague, where the headquarters of our group is based, is also very convenient, and I have to mention the Lithuanian pro-business mindset and diligence as great benefits for our project as well. To sum up, Lithuania presented itself as a perfect gateway for our expansion to Europe.

    CEEIHM: Could you tell us about some of the next projects for Paymont in the country?

    Stefan: Now that we have successfully established the company and got an EMI license from the Bank of Lithuania, we plan to proceed with the next step in our strategy, which is to enable the expansion of our sister company, Ronda Invest. Ronda Invest has been operating a crowdfunding platform in the Czech Republic and has been building its brand as a reliable and transparent partner for SME project owners and retail investors. Ronda Invest provides loans for SMEs mostly, but not only, engaged in real estate (i.e., financing of construction or purchase of development projects according to real needs of the developer) and on the other side offers individuals and legal entities an opportunity to invest in these loans. All loans are secured by real estate and thus they offer an interesting yield with low-risk potential.

    Currently, Ronda Invest operates its platform in the Czech Republic, but, with its growing client base, we came to the point where we decided to extend the reach of our business to clients from other markets. With the upcoming EU Regulation on European Crowdfunding Service Providers, which will enter into force on November 10, 2021, we would like to take advantage of the EU’s Single Market and provide our services across the EEA on a cross-border basis. So our next project will be to apply for a Crowdfunding Service Provider license from the Bank of Lithuania. Having both EMI and Crowdfunding licenses, we will get a significant synergic effect and be able to offer our clients a complex service under competitive conditions.

    CEEIHM: What did the process of obtaining the license entail and how did Adon Legal help you with it?

    Stefan: As mentioned before, Lithuanian FinTech legislation is very progressive and because it’s been in place for a couple of years now, the process is transparent and predictable. These two factors are essential for any business. We started by creating an action plan with Adon Legal as our main local partner, where we defined all the strategic points like organizational structure, infrastructure, division of responsibilities, and so on. Adon Legal was an essential part of crafting the plan for the licensing process as they gave us an insight into the perspective of the Bank of Lithuania towards financial market participants and also crucial info about the Lithuanian market, without which we wouldn’t be able to tailor our plan and, in the end, the process would have cost us much more time, personnel, and financial sources. Adon Legal was also very helpful in advising us on how to make sure our policies comply with Lithuanian regulations, and, finally, the firm facilitated all necessary arrangements with regards to the local company establishment process.

    CEEIHM: Why did you choose Adon Legal as your advisor? 

    Stefan: When we started our market search in Lithuania, we were looking for a reliable partner with the necessary experience in the regulatory environment. We came across many law firms and business consultants who offered their services, but one thing that distinguished Adon Legal from others was their specialization in the FinTech industry, as well as their professional but-at-the-same-time human approach when negotiating the terms of a possible cooperation. Donatas Sliora, a partner at the firm, was very patient and precise in explaining the aspects of the licensing process to us, which assured us he knew the details from his own experience, not only on a theoretical basis.

    We are very satisfied with the services of Adon Legal in the EMI licensing process and we will continue with our cooperation in the Crowdfunding licensing project as well — and I personally believe our close partnership will not be limited to these two projects.

    Originally reported by CEE In-House Matters.

  • Motieka & Audzevicius Advises Turing College Startup on Participating in Silicon Valley Accelerator Y Combinator

    Motieka & Audzevicius, working with Orrick, Herrington & Sutcliffe, has advised Lithuanian start-up Turing College on its relocation to the United States in order to participate in Silicon Valley accelerator Y Combinator.

    According to Motieka & Audzevicius, “Turing College has become the first Lithuanian start-up to be selected by Y Combinator. In the past Y Combinator has invested in such prominent companies as Airbnb, Stripe, Dropbox, Reddit, and many more.” According to the firm, “Turing College is seeking to build an educational coding institution where all learning processes are fully automated, built on top peer-to-peer learning pedagogy.”

    On September 25, 2020, CEE Legal Matters interviewed Turing College co-founder & CBDO Benas Sidlauskas regarding the startup’s receipt of a EUR 1.2 million investment from Startup Wise Guys and the Motieka Investment Fund (initially reported by CEE Legal Matters on September 2, 2020).

    The Motieka & Audzevicius team included Partner Giedrius Kolesnikovas, Senior Associates Mantas Juozaitis and Rokas Jankus, and Associate Darius Amsiejus.

  • TGS Baltic Advises Maxima Grupe on Commercial Paper Program Structuring and EUR 40 Million Issuance of Notes

    TGS Baltic has advised Maxima Grupe, which controls the largest food retail group in the Baltics, on structuring a commercial paper program, and issuing EUR 40 million of notes under it. Luminor bank acted as the sole arranger and book-runner of the offering.

    According to TGS Baltic, “the notes were subscribed by institutional investors representing the Baltic states, Scandinavia, [and] the United Kingdom and other European countries. Demand for the securities exceeded EUR 100 million, and the notes were placed at 0.618% yield. This is the first commercial paper transaction under such format in the Baltic region bringing brand new financing opportunities for corporate borrowers via debt capital markets. Commercial papers are short-term unsecured promissory notes issued by companies with a fixed-term maturity and used to address short-term liquidity or working capital needs.”

    TGS Baltic’s team included Partner Vidmantas Drizga, Associate Partner Mantas Gofmanas, Senior Associate Karolina Lapinskaite, and Legal Assistant Kotryna Visockyte.

  • Deal 5: Monimoto Co-Founder Andrius Bruno Rimkunas on Capital Raise

    On January 28, 2021, CEE Legal Matters reported that Sorainen had advised Open Circle Capital on its investment in Monimoto, a company developing smart trackers for motorcycles. CEEIHM spoke with Andrius Bruno Rimkunas, Co-founder and Business Developer at Monimoto, to learn more.

    CEEIHM: What is the story of Monimoto?

    Andrius: Back in 2013, when I first met Rolandas Dranseika, currently CEO and co-founder of Monimoto, we were playing with the idea of making an efficient anti-theft tracker for bicycles. In 2014, we decided to move onto motorcycles, as with existing technologies at a time, bicycles ended up not being as promising of an avenue. But with motorcycles, it looked good: existing problem (thefts), no end-user solutions, no B2C solutions, and distribution was available. It took two years and lots of failed experiments to get there. At the end of 2016, we decided to establish a company to start a separate business dedicated to this product

    CEEIHM: SPC Legal recently advised your company on attracting investment from Open Circle Capital. Could you tell us a bit more about the deal and what role Open Circle Capital will play in Monimoto’s future?

    Andrius: SPC Legal – and Partner Mindaugas Rimkus – have been with us since the very start, and we are extremely delighted to work with them, and see them growing along with us. As for OCC (Open Circle Capital), I am excited to work with them. I worked with one of the partners, Rokas Tamosiunas, in the past, when he was managing “Startup Highway” (and yes, we failed with that startup, causing about EUR 8,000 of losses for them), and now we are working with OCC Partner William Cardwell, an Adjunct Professor on Finance and Entrepreneurship. William has extensive experience in M&A and investments, and hopefully, when growing at full speed, they will use this incredible brainpower, experience, and network for us! For now, we are getting used to each other and on-boarding ourselves during periodic meetings.

    CEEIHM: How will the investment further Monimoto’s business goals in the coming months?

    Andrius: As promised, we are increasing our team and expenditures towards the USA and other markets. We did finish 2020 profitably, which looks very positive (considering COVID-19 and triple team growth), and in 2021, the raised amount will add some capabilities for us to take measured, but brave risks.

    CEEIHM: It was reported that Monimoto secured funding from a total of 392 investors during its crowdfunding campaign and follow-up investments. What is the secret of Monimoto’s appeal to the investors?

    Andrius: I am sorry to disappoint you. No magic, no secret, no over-promises were used during this small round. We just said and showed what we are. 392 investors sounds like a scary big number – some invested EUR 10,0000, some EUR 10, and we are about to learn how to communicate properly with all of them. These are not institutional investors, but rather regular, private individuals, and they trusted us with their hard-earned money. And yes, most of them are our clients. I will do my best to make them happy investors.

    CEEIHM: What would be the main qualities of SPC Legal that made you choose the firm as Monimoto’s legal advisor?

    Andrius: We have known Mindaugas Rimkus for more than seven years now. We, as founders, fully trust him, and this is because he is professional, open, humble, and straightforward. And it looks like we share the same values and attitudes.

    Originally reported by CEE In-House Matters.

  • Sorainen helps KogoPay Obtain Electronic Money Institution License in Lithuania

    Sorainen has helped KogoPay obtain an electronic money institution licence in Lithuania. 

    According to Sorainen, “the company plans to expand its operations in Lithuania and the EU by offering customers electronic money services, including e-wallet services, express payments and QR payments, allowing customers to pay conveniently when shopping online, or offline in physical stores.”

    Sorainen’s team included Partner Tomas Kontautas, Counsel Evaldas Dudonis, Senior Associate Jurgita Nikita, and Associate Liutauras Vasiliauskas.

  • Cobalt Helps Sezzle Obtain Electronic Money Institution License in Lithuania

    Cobalt has helped US-based Sezzle Inc. obtain an electronic money institution license from the Bank of Lithuania.

    According to Cobalt, the institution intends to provide electronic money and payment services to merchants offering their goods on the Sezzle platform and to buyers. 

    Sezzle is a publicly traded FinTech company that provides interest-free installment plans for buying products at online stores. The company has more than 2.4 million active users and over 29,000 participating merchants.

    Cobalt’s team consisted of Partner Akvile Bosaite and Associates Robertas Grabys and Andra Gavedaite.

  • Cobalt Advises Genesis on Creation of Heston Airlines

    Cobalt, working with lead counsel McCann FitzGerald, has advised Irish aircraft lessor Genesis on its strategic alliance with Heston Aviation to create Heston Airlines. Averus reportedly advised Heston Aviation on the deal, which also included the leasing of a number of A320 aircraft.

    According to Cobalt, Heston Airlines will be a new Lithuanian-based charter and aircraft, crew, maintenance, and insurance service provider, offering various leasing solutions to airlines. Genesis will work with Heston Airlines to deliver a number of additional A320 aircraft in 2021.

    Cobalt’s team included Partner Akvile Bosaite, Senior Associates Lina Aleknaite-van der Molen and Justinas Sileika, and Associates Justina Auzbikaviciene and Andra Gavedaite.

  • Sorainen, Walless, and Cobalt Advise on CGTrader’s USD 9.5 Million Series B Funding Round

    Sorainen has helped Lithuanian 3D model trading platform CGTrader attract USD 9.5 million in a Series B funding round from Mikael Hed, Evli Growth Partners, LVV Group, and Karma Ventures. Walless advised Mikael Hed and Evli Growth Partners and Cobalt advised Karma Ventures on the deal.

    According to Sorainen, as a result of the investment, Hed, the former CEO of Rovio, has become Chairman of the Board at CGTrader.

    Since its launch in 2011, The CGTrader platform has amassed approximately 3.5 million registered users, 1.1 million models, and about 380,000 customers. The company has 79 employees, and Sorainen report that the company’s team is set to double in size in 2021.

    Sorainen’s team included Vilnius-based Partner Mantas Petkevicius, Senior Associate Vytautas Sabalys, and Counsel Indre Sceponiene.

    The Walless team consisted of Managing Partner Dovile Burgiene, Senior Associates Arturas Grimaila, Guoda Sileikyte, Associate Gabriele Adomaviciute, and Junior Associate Migle Jeremiciute.

    Cobalt’s team was led by Partner Kristel Raidla-Talur with the support of Senior Associates Greete-Kristiine Kuru and Sven Bottcher and Assistant Lawyer Johanna Lumiste.

  • Cobalt and Ellex Valiunas Advise on Sale of AGACAD to Arkance

    Cobalt has advised the shareholders of AGACAD, a Vilnius-based developer of building information modeling software, on the sale of 100% of their shares to France’s Arkance. Ellex Valiunas advised the buyer on the deal.

    The acquisition is expected to help expand AGACAD’s research and development activities and the existing team of software developers in Vilnius. Financial details were not disclosed.

    Arkance, a subsidiary of Groupe Monnoyeur, is a provider of digital services in the construction and manufacturing sectors.

    Cobalt’s team consisted of Partner Juozas Rimas, Managing Associate Deimante Pagiriene, and Associate Milda Vaznelyte.

    The Ellex Valiunas team included Partner Paulius Gruodis, Senior Associate Mantas Juska, and Associate Arvydas Gruseckas.