Minesto Launches $9M Rights Issue

Minesto has decided to carry out a rights issue to raise proceeds of approximately SEK 86 million (close to $9 million).

The rights issue is carried out in order to give Minesto’s existing shareholders the opportunity to subscribe for new shares under the same conditions as in the private placement of units of approximately SEK 60 million that Minesto completed in October 2019.

With the capital injection from the private placement, the cash position is estimated to be sufficient to finance the company’s working capital requirement during the coming twelve-month period.

The net proceeds from the rights issue would be distributed according to the following order of priority and scope:

  • Completion, further development and expansion of the first production facilities in the company’s current projects in the UK, the Faroe Islands, Taiwan and France (approximately 60 percent); and
  • Other product and market development activities focusing on customer collaboration and installation projects (approximately 40 percent).

Minesto’s largest shareholder, BGA Invest, has committed to subscribe for units to a total value of SEK 20 million in the rights issue, corresponding to approximately 23 percent of the total number of units.

The expected subscription period runs from 4 December 2019 until 18 December 2019.

Transaction costs of the rights issue are expected to amount to approximately SEK 4 million.

Upon full exercise of all the warrants in the directed issue and the rights issue, and provided that any conversion of the subscription price is not carried out in accordance with current conditions, the Company will receive additional proceeds of approximately SEK 201 million, before transaction costs, no later than April 30, 2021.

The Company intends to use the net proceeds from the warrants according to the following order of priority and scope:

  • Enable the expansion of the first large-scale commercial parks, partly through initial project investments in-house and in combination with external parties, and partly to ensure the Company’s capacity to deliver products (approximately 70 percent); and
  • Other product and market development activities (about 30 percent).

The transaction costs for the directed issue, the rights issue and the exercise of warrants are estimated to amount to approximately SEK 12 million in total, upon full subscription.

Pareto Securities is the financial advisor and MAQS Advokatbyrå is the legal advisor in connection with the rights issue.

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