By Susanna Moon
Chicago, Aug. 29 – Savo-Solar plc said it plans to price a €3.9 million rights issue.
The offering will consist of up to 11,930,156 new shares, representing about 42.86% of the total number of the company’s shares outstanding after the offering, according to a company announcement.
The subscription price is €0.33, or SEK 3.14 per offer share, and the subscription period runs from Sept. 5 until Sept. 21.
Proceeds would be used for working capital so that the company can deliver signed and upcoming orders in 2016 to 2017 and to expand its operations to new markets of about €1.7 million and for investments increasing the capacity of the production line, which will allow the delivery of upcoming orders of about €700,000 and for the repayment of the capital and interest of the bridge loan financing of about €970,000.
Savo-Solar said it gives all its shareholders registered in Savo-Solar’s shareholder register maintained by Euroclear Finland Ltd. and Euroclear Sweden AB three book-entry subscription rights per each share held on the offering record date. Each four subscription rights allow the holder to subscribe for one offer share.
The record date is Aug. 31 with the last day of trading including the subscription rights on Aug. 29 and the first day of trading excluding the subscription rights on Aug. 30.
The company’s board of directors will resolve on offering any unsubscribed offer shares secondarily to shareholders and other investors who have submitted a subscription application for the offer shares during the subscription period without subscription rights.
The company said it has received subscription commitments from existing shareholders and underwriting commitments from external investors worth at least €2.9 million and up to a maximum of about €3 million.
The parties who have made subscription undertakings and underwriting commitments have thereby committed to subscribe for between 73.3% and 77.5% of the offering.
The subscription undertaking of the Finnish Innovation Fund Sitra is a maximum of the pro rata share of the offer shares subscribed in the offering, the release noted. The underwriters may use their underwriting fee for setting off the subscription price of the company’s new shares in a directed issue, to be arranged for the underwriters, if necessary, after the offering. In that case, the underwriting fee is 12% of the given underwriting guarantee, meaning a maximum of about €2,831,000. The subscription price in the directed issue is defined as the volume-weighted average price on First North Sweden during the subscription period.
The board of directors will decide on a possible directed issue on Sept. 23, while deciding on approval of the subscriptions received in the offering.
G&W Fondkommission AB has received a mandate to acquire professional investors for the company during the subscription period, so that the investments received through them is a maximum of €2.2 million.
Investors who are procured by G&W Fondkommission AB will partake in the offering, and additionally a separate directed issue to them can be arranged with the same subscription price, if the offering is fully subscribed.
Investors procured by G&W will participate in the offering in a way where the subscription rights of Cleantech Invest Oyj, Clean Future Fund Ky and Suur-Savon Osuuspankki are received free of charge.
Cleantech Invest Oyj, Clean Future Fund Ky and Suur-Savon Osuuspankki have notified the company that they are not participating in the offering, and they have committed themselves to dispose of their subscription rights without consideration to an entity addressed by the company's board of directors.
The subscription rights disposed by Cleantech Invest Oyj, Clean Future Fund Ky and Suur-Savon Osuuspankki to the future investors participating in the offering through G&W Fondkommission AB amount to 7,029,825, and it is possible to subscribe for a maximum of 1,757,456 offer shares with these.
Therefore, the size of directed issue to investors procured by G&W Fondkommission AB would be a maximum of 4,909,210 shares, meaning about €1.62 million, if the directed issue is fully subscribed. The amount of shares received by investors procured by G&W in the possible directed issue would amount to about 15% of the total amount of shares in the company after the offering and the possible directed share issue, assuming that the offering and the possible directed issue to investors procured by G&W are both fully subscribed. The board of directors will decide on a possible directed issue on Sept. 23.
Savo-Solar manufactures solar thermal collectors and provides solutions for large district heating plants. The company is based in Mikkeli, Finland.
| Issuer: | Savo-Solar Ltd.
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| Issue: | Rights issue
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| Amount: | €3.9 million
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| Shares: | 11,930,156
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| Price: | €0.33
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| Subscription period: | Sept. 5 until Sept. 21
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