Welcome. I'm Vibeke Krohn, and I'm the President and CEO of Betolar. Thank you for joining us today. We are here to present our Q2 numbers, and in this webcast, you'll meet myself, Vibeke Krohn, and our CEO, Mikko. I have recently joined Betolar as the CEO. Over the last past weeks, I've spent time with our employees, our board, our customer, and our partners, building my understanding of opportunities and challenges ahead. We close off a first quarter with a continued revenue growth, strengthened financing, and a sharpened strategic focus. What has impressed me with Betolar is our strong foundation in technology, our ability to turn market opportunities into solutions and real customer demand, both in metal extraction and Critical Infrastructure Protection. Also finally, that it's a strong company, it's a strong foundation, and a purpose-driven setup.
Betolar operates in the intersection of resource efficiency, critical raw material, circular economy, and industrial decarbonization, all topics that are increasingly more important globally. Challenging geopolitics continue to highlight the importance of resilience, creating new opportunities and market demand for Critical Infrastructure Protection and proprietary extraction of rare earth metals. Building on our strong foundation and our material knowledge, we are well-placed to meet this demand and to really drive our strategic focus areas going forward. Here today, we will share a little bit about the details, both some highlights, and we will also share financials underlying this revenue growth that has continued and our financing situation. This is our disclaimer about forward-looking statements, so please review. Our agenda today is highlights, as I said, financials. We'll open up for questions, and you'll get a chance to get to know me. Okay. So who am I?
Prior to joining Betolar, I have focused on building businesses. I've built businesses across many markets, but mainly building business scaling technologies and rapid commercialization. I bring with me about 15 years of C-suite roles, CEO roles, and C-suite roles in various tech scale-ups, difficult, and multinational corporations. I'm very much driven by purpose and solving global challenges. I'm super excited about Betolar. What really attracted me was the opportunity to help scale the transition from technology development to commercial growth and industrial implementation. It is early on for me. It's my day 8.5 . Today's focus will very much be pre my time and our current business and performance. Looking ahead, though, my priorities as CEO will be to drive commercialization and customer adaptation.
We need to be disciplined, we need to be focused and execution-oriented to continue to develop the company to drive value both for customers, partners, and shareholders. With that, Mikko, I think I'll hand over to you.
Okay. Thank you, Vibeke. Let's then move to the business highlights of the second quarter. Indeed, we had quite eventful quarter here, and we will first focus on the business side and then move to the financing arrangements, which we also had during the second quarter. Starting with the metal extraction side and the strengthening the financing and partnerships that what are we then using to drive the growth in our metal extraction business. Starting from the partnership with Scalewolf, and first explaining what is Scalewolf. Scalewolf is a venture capital fund, and we have been partnering with them and signed a letter of intent with them. The plan is that we are then accelerating the implementation of our metal extraction technology business.
Scalewolf is very much providing access to capital for us together with them, they are extremely well-connected to different parties there. For example, they have good NATO connections and also that they have impressive track record in building businesses and finding funding for them. The first step where they have been committed is to our financing arrangements for the convertible hybrid loan, and I will talk about that later on today. That's not all, that we are also planning there to make some structural changes there under the letter of intent, and all the details will be then disclosed when we have been then executing those.
The plan is that we would be establishing new entities under our parent entity together with the Scalewolf, and with their help, then we are able to collect more capital to these entities where we can actually then create value for our shareholders and also for all the owners of different entities there. We will then disclose more details when we are progressing with this collaboration there. The first step anyhow is that during the third quarter, then is that the Scalewolf that will be then participating that our convertible hybrid loan program. The second new deal, what we announced there during the second quarter in June, is that we secured the exclusive rights to utilize titanium-rich mine tailings from Otanmäki mining area in Finland. Just to give some of the scale of how big is the mining area and the tailings there.
There are roughly 10 million tons of titanium-rich mine tailings in the mining area. Otanmäki, that plays in Finland there, and what is then essential there that it's closed mine, and when the mine was operating, so during that time, all the extraction technologies were not that efficient. That's why the mine tailings are having big quantities of valuable metals. If we transfer the titanium value when that has been then refined to metals, so we are talking of roughly about EUR 7 billion value of the metals. It's big opportunity, and to capture the value from these mine tailings there, we need, of course, the partners. Scalewolf is the main partner there, and that's why these two arrangements are also linked.
Then a third point in the metal extraction side is that we have been applying for further grants from EU, and we secured EUR 2.1 million grant from EU LIFE programme. The program is called MINERVA project, and that is then collaboration project that is related then to the Sokli mine project in Finland as well. Betolar's role there is to extract the metals out from the mine tailings, and also to produce low-carbon circular cement. Regarding this project, we will then disclose also the results there when the program is then advancing. This is a multi-year program there, which is about to start during the second half of this year.
If we move to the Critical Infrastructure Protection side, we see the demand increase there, and basically, the increasing security concerns. We have seeing the physical damages done to the critical infrastructure, and the threat is growing all the time there. We have seen drone attacks happening there in different parts of Europe, and also some drones landing to the Finnish side there. We have been developing our solutions there and innovation, and we have been patenting new technologies there regarding the Critical Infrastructure Protection side there. We have also announced the letter of intent with the cooperation with Enersense so that we can then protect electrical substations. More also to be disclosed about this cooperation later on when we are then moving forward with our commercialization and building our solutions.
As Vibeke was mentioning, the Critical Infrastructure Protection side, there we really see the growing demand going future. The last point is, of course, that in the circular material sales side, we are continuing there, that we have the ongoing operations in India. Also, as we have been mentioning earlier, we have our own slag available in Finland. This is also what we have been communicating during the second quarter and also now lately after the quarter is that it is available there in Finland, and we have progressed with all the preparations with all the paperworks and the product is ready to be used from our terminal to our customers. Next, moving to the financing arrangement, what we announced in June.
Starting from the top, the last day of June, we announced that we have agreed, or actually we signed during the last day of June that we agreed that we are then having a EUR 3 million term loan from Danske Bank. This is then guaranteed by European Investment Fund and one of our largest owners, Virala. On top of that one, then we have issued convertible capital notes or as we are saying that in the review, we are also talking about convertible hybrid loan, meaning that the capital notes are convertible to the equity with the strike at EUR 2.1 per share. This has no maturity date. We have then classified this as an equity in our group financial statements. We had our largest owner, Virala and Nidoco, Ilmarinen, and Ajanta participating this program with EUR 1 million each.
This was issued at the end of June. On top of this one, we released that we have a tap issue on the convertible capital notes. This is that where Scalewolf has committed to subscribe with the same terms as mentioned above with the other investors. This was then subject to approval from our extraordinary general meeting that took place last week, and we got the green light there. Now we are working on to execute this last part of this financing deal. With all of this financing, we are then collecting EUR 9 million. With that money, we are then securing the runway there to the 2028 side. Let us then move to the financial operational indicators side.
Starting from the revenue, our revenue growth continued, and that more than doubled year-on-year when looking at the H1 numbers. We are very close to the numbers of entire year 2025. Meaning that our first half revenue was EUR 902,000. Then when reviewing our EBITDA levels, the EBITDA level is roughly on the same level where we were a year ago there. There are a few main reasons there. One is the other operating income. As mentioned in the first quarter, we had one of item in the first quarter other operating income regarding the grants. That is one reason why we are on the same level with the EBITDA.
Looking at the balance sheet side there, the liquidity, the cash balance was roughly EUR 6 million at the end of the quarter. Then the total liquidity and undrawn grants totaling then more than EUR 12 million. On top of that one will then come the convertible notes then from Scalewolf, which will increase the number then after the third quarter. Then turning to the order intake side. Order intake was unfortunately low there. Now going forward there, we are concentrating on the execution of our strategy and speeding up the commercialization in all of our businesses, especially in protecting the CIP side. Then finally having a look then for our financial position and outlook. Starting from the outlook, the guidance for the entire year remains unchanged.
The revenue for 2026 is expected to grow compared to the previous year. The financial position mentioned already, the cash balance roughly EUR 6 million. On top of that one, we have the European Union's LIFE grant, EUR 2.1 million. Then we have some half million euros remaining of Business Finland grant, and then some EUR 100,000 related to other grants that are still remain to be undrawn. At the end of June, we had the entire amount of the senior loan undrawn, and then EUR 1 million of the convertible capital notes that did not land to our bank account during the end of second quarter. That came in the early days of June. That was in the numbers. All in all, we are there more than EUR 12 million with our liquidity and undrawn grants.
This was in a nutshell, the highlights from the business side and also from the financial side. I will then hand it over back to Vibeke.
Good. Thank you. Exciting. Many things ongoing, lots of customer interest, adoption slower than perhaps we expected, and perhaps even the market expected. We have lots of great questions and great engagement and you know that you can continuously ask questions. I will, with the help of Mikko, now try to address the main questions that we've had. Perhaps not every one, there's quite a few, but let me try to take them in order of priority. There's a few questions on the partnership with Scalewolf and the opportunities relating to MET. Also, on the opportunity mentioned by Mikko, the Otanmäki mine tailings, that I will try to cover. We've also had some questions on the opportunity, or the market, customer segments prioritized for critical infra, and a few more. So let's see how far we get. Let me start from the top.
We are obviously very excited about the opportunities in the metal extraction space. We have, over time, got to know and also now entered into a partnership with quite an interesting company called Scalewolf, which is a strong growth VC, with quite an impressive track record in building dual-use companies, defense companies, critical infra. They tend to invest in companies they find mission-critical and that has customer demand from private sector and/or governmental demand. They're backed by strong American funds and wide investors, so it's a good party to be part of. They're quite excited about the Otanmäki opportunity. You are well aware that we have secured the exclusive rights for the tailings.
We are developing now a structure, where we will, together with Scalewolf, explore the opportunity, understand in more depth the scope and the metal concentration that we can find in Otanmäki to really build a strong case. So far, there has been a strong case for the market and also investors, and we're very much excited. We have about five, six months now, where we work closely with Scalewolf, to execute on this opportunity. On the CIP side, several questions. First a question on market sizing. I think the market size for critical protection is rather huge, and it's almost a little bit comparing apples and pears and depending on what you put in. We haven't provided you with a direct number, and the reason for that is that we more so look to the various customer segments.
Some of the customer segments that we've explored over the last few months is sub-sea. We have explored, and are exploring in great depth, on land, our solutions for power grid, for water supply, and for dual use and defense. So far, one can argue that the customer uptake is slower. We've had a couple of good cases that have given us some revenue, but we're really seeing great interest and also perhaps a pent-up demand on the critical infra. That said, though, I think it is important to say that building critical infrastructure for sub-sea, for land, obviously has some lead time to get to market, but it's really our focus going forward.
With the likes of Enersense on power grid, we are very much excited about the LOI with Enersense and that we will move this into hopefully a joint go-to-market effort to secure power grids and substations. Other questions. There was a couple of questions on revenue and order intake that I'd like to cover. Having now worked in listed companies for more than 20 years, I think revenue expectations or revenue forecasts is probably more of the difficult ones. The challenge isn't necessarily the demand, it's more the timing of commercialization, and I think Betolar perhaps is a good company there where we have spent time to conduct R&D and to develop technology to get into position now to start commercializing and then also to drive and to build customer solutions and to drive actual commercialization. Our forecast, obviously, we try to be as honest as we can.
Our forecasts reflect the realities of what we see. But perhaps the realities of some of these customer projects, especially on the CIP side, are a little bit longer, due to customer decisions cycles, regulation, and rather complex installation. Think sub-sea installation and on land installation as well. But we're pushing ahead, and I think as much as I with you, perhaps look at the direct order book, a little bit lower than expected. That's really going to be my first priority going forward. Anything else, Mikko, that we want to cover? There was a couple of questions on grants. Yes, we are well-positioned for grants both from EU and the MINERVA project. We have good, strong, longstanding relations with Business Finland, and also Tesi. So I think we're well-placed. I think it is important, though, that in the shift towards commercialization, we should not live on grants.
We should definitely get to actual revenues. So that's also where our focus is. I think credibility comes from delivery and not really on the forecast, and that's what I live by.
Yep.
If there is no more questions, perhaps we go to concluding remarks. I would like to thank you. We are in the midst of a strategic turnaround. We are really pushing towards commercialization of our solutions. In short, four points. I think the geopolitics that we have around us provide opportunities for Betolar, both within Critical Infrastructure Protection and metal extraction. We are shifting from technology development to commercialization. Our partnerships also discussed today, e.g., our partnership with Scalewolf and Enersense really help us scale with lower capital intensity. We are coming from a strong base of technology, and technology development gives us the reason to play, but execution is what creates value. With that, thank you so much. We have enjoyed this time. We have, as a normal quarterly presentation upcoming, then next one coming in October.
We also would like to invite you for Capital Markets Day, a day to be announced very soon. We intend to then go a little bit deeper in terms of strategic priorities, focus areas, that we also do deep dives on our strategic business areas, and that we hopefully can come back with some exciting news both on the revenue side and also on partnership and how we drive long-term value for owners and society in general. Thank you.
Thank you.