Nexam Chemical announces outcome of rights issue
04/08/2020
The board of directors of Nexam Chemical Holding AB (”Nexam Chemical” or the “Company”), today announces the outcome of the rights issue of units that was published on February 14, 2020 (the ”Rights Issue”). The Rights Issue was subscribed to 73.6 percent and Nexam Chemical receives SEK 45.6 million before issue costs. The outcome means that the Company secures financing for, among other things, product development and production capacity improvements.
The subscription period for Nexam Chemical’s Rights Issue was completed on April 2, 2020. The final outcome shows that the Rights Issue was subscribed to 73.6 percent, of which 63.3 percent was subscribed with support of unit rights and 10.3 percent was subscribed for without support of unit rights. The subscription price in the Rights Issue was SEK 22.00 per unit, corresponding to SEK 5.50 per share. Through the Rights Issue, Nexam Chemical will receive SEK 45.6 million before issue costs.
One (1) unit contains four (4) shares, one (1) warrant series TO1 and one (1) warrant series TO2. 2,071,087 units are issued in the Rights Issue, containing 8,284,348 shares, 2,071,087 warrants series TO1 and 2,071,087 warrants series TO2. Each warrant series TO1 entitles the right to subscribe for one (1) new share in the Company at a subscription price of SEK 6.50 during the period September 6 – 17, 2021. This means that the capital contribution from the warrants series TO1 may amount to a maximum of approximately SEK 13.5 million. Each warrant series TO2 entitles the right to subscribe for one (1) new share in the Company at a subscription price of SEK 8.50 during the period September 5 – 16, 2022. This means that the capital contribution from the warrants series TO2 may amount to a maximum of approximately SEK 17.6 million.
That we, despite prevailing uncertainty followed by the corona pandemic, have a broad support from our shareholders, we see as a clear receipt that we are on the right path. Nexam Chemical is developing strongly and we are seeing increased demand from our customers. We achieved a record strong growth during the first quarter of the year, which gives us strength ahead. As the Rights Issue was not fully subscribed, the capital contribution will be less than expected. However, SEK 45.6 million is fully sufficient for us to be able to take measures to improve production capacity and invest in production development. We will also have the capacity to handle increased working capital, even if the security margins decrease slightly. To further strengthen our financial position, we will explore the possibilities of securing additional operating loans. Overall, we are now well positioned for continued strong growth, which is expected to result in sustainable profitability. – Johan Arvidsson, CEO Nexam Chemical
Through the Rights Issue, the share capital in Nexam Chemical increases with SEK 159,314.384620 to SEK 1,457,757.057729. The total amount of shares in Nexam Chemical increases from 67,519,019 to 75,803,367. The 2,071,087 paid subscription units are traded on Nasdaq First North Premier Growth Market under the ticker NEXAM BTU until the Rights Issue has been registered by the Swedish Companies Registration Office, after which paid subscription units will be replaced by shares and warrants. The warrants will then be listed on Nasdaq First North Premier Growth Market as soon as possible after the Rights Issue has been registered by the Swedish Companies Registration Office.
Allocation of units subscribed for without support of unit rights has been made in accordance with the principles set out in the EU Growth Prospectus published on March 12, 2020. Notification of allocation is made through a contract note sent to each subscriber. Units must be paid in accordance with the instructions on the contract note.
Advisors
Financial advisor to Nexam Chemical in connection with the Rights Issue is Erik Penser Bank AB and Setterwalls Advokatbyrå AB is legal advisor to Nexam Chemical in connection with the Rights Issue.
For more information, please contact:
Johan Arvidsson, CEO, +46-708 97 44 39, johan.arvidsson@nexamchemical.com
This information is such information as Nexam Chemical Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 CET on April 8, 2020.
Important information
The information in this press release does not contain or constitute an offer to acquire, subscribe or otherwise trade in shares, warrants or other securities in Nexam Chemical. No action has been taken and measures will not be taken to permit a public offering in any jurisdictions other than Sweden. Any invitation to the persons concerned to subscribe for units in Nexam Chemical will only be made through the Prospectus that Nexam Chemical published on March 12, 2020 and the Supplementary Prospecutses that Nexam Chemical published on March 23 and March 30, 2020.
The information in this press release may not be released, distributed or published, directly or indirectly, in or into the United States, Australia, Canada, Japan or any other jurisdiction in which such action would be unlawful or would require registration or any other measures than those required by Swedish law. Actions in violation of these restrictions may constitute a violation of applicable securities laws. No shares, warrants or other securities in Nexam Chemical have been registered, and no shares, warrants or other securities will be registered, under the United States Securities Act of 1933, as amended (the “Securities Act”) or the securities legislation of any state or other jurisdiction in the United States and no shares or other securities may be offered, sold or otherwise transferred, directly or indirectly, in or into the United States, except under an available exemption from, or in a transaction not subject to, the registration requirements under the Securities Act and in compliance with the securities legislation in the relevant state or any other jurisdiction of the United States.
Within the European Economic Area (“EEA”), no public offering of shares, warrants or other securities (“Securities”) is made in other countries than Sweden. In other member states of the EU, such an offering of Securities may only be made in accordance with the Prospectus Regulation (EU) 2017/1129 (the “Prospectus Regulation”). In other member states of the EEA which have implemented the Prospectus Regulation in its national legislation, any offer of Securities may only be made in accordance with an applicable exemption in the Prospectus Regulation and/or in accordance with an applicable exemption under a relevant national implementation measure. In other member states of the EEA which have not implemented the Prospectus Regulation in its national legislation, any offer of Securities may only be made in accordance with an applicable exemption under national law.
This communication is only being distributed to and is only directed at persons in the United Kingdom that are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (ii) high net worth entities, and other persons to whom this announcement may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). This communication must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Persons distributing this communication must satisfy themselves that it is lawful to do so.
This press release may contain forward-looking statements which reflect the Company’s current view on future events and financial and operational development. Words such as “intend”, “expect”, “anticipate”, “may”, “believe”, “plan”, “estimate” and other expressions which imply indications or predictions of future development or trends, and which are not based on historical facts, are intended to identify forward-looking statements. Forward-looking statements inherently involve both known and unknown risks and uncertainties as they depend on future events and circumstances. Forward-looking statements do not guarantee future results or development and the actual outcome could differ materially from the forward-looking statements.
The English text is an unofficial translation. In case of any discrepancies between the Swedish text and the English translation, the Swedish text shall prevail.