Opcon to sell $40 million of convertible bonds via private placement

August Capital commits to buy 0% convertibles in $4 million tranches

By Devika Patel

Knoxville, Tenn., Feb. 25 - Opcon AB said it plans a placement of zero-coupon convertible bonds. August Capital Ltd., the investor, will buy up to $40 million of the convertibles over three years and has committed to invest a minimum of $24 million in tranches of $4 million each.

"Looking to the development and growth we see ahead and considering the opportunities in marine applications, we need to strengthen our financial muscles. By issuing convertibles worth $4 million at a time within a generous framework totaling $40 million, we can successively secure access to the capital that the company will require. This method also means that we restrict the share dilution effect," chairman Mats Gabrielsson said in a press release Friday.

Pricing is expected in March.

Based in Amal, Sweden, Opcon is an energy and environmental technology group that develops, produces and markets systems and products for eco-friendly, efficient and resource-effective use of energy.

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