Energia
Savosolar publishes prospectus for EUR 5.3 million rights issue and discloses new information
Savosolar Plc
Company Announcement 22 February 2019 at 12:45 p.m. (CET)
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN PART, DIRECTLY OR INDIRECTLY, IN THE USA, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH PUBLICATION OR DISTRIBUTION IS UNLAWFUL.
After increased market activity in 2017, the positive development continued in 2018. Solar heating is, during 2018, for the first time expected to produce more than 1 TWh worldwide (= 1 billion kilowatt hours) and according to market forecasts solar photovoltaic capacity is expected to rise to 240 TWh by 2050. This is due to the fact that solar heating is, in suitable applications, a very competitive form of clean energy production. In addition, international institutions and states continue to encourage companies' environmentally friendly energy solutions through support programs, taxes and subsidies, resulting in interest from many different customer groups.
Savosolar, in turn, has experienced strong sales growth with a turnover of EUR 5.6 million in 2018, which is 578 per cent higher than in 2017. Although Savosolar is well positioned with respect to production capacity, new orders and generally growing demand, the Company needs additional working capital and financial capacity due to projects that will be implemented in 2019 and, therefore, the Company arranges the Offering.
In order to carry out the ongoing and future projects in 2019 and to be able to effectively manage the future workload variations in projects, the Company needs additional working capital. The Company aims to raise approximately EUR 5.3 million through the Offering. If the Offering is fully subscribed, the Company expects to receive approximately EUR 4.3 million in net proceeds after transaction costs amounting to approximately EUR 0.9 million. In connection with the Offering, the Company also issues Warrants free of charge to investors who have subscribed for Offer Shares in the Offering. The Company may therefore additionally raise up to a maximum of approximately EUR 3.5 million in net proceeds, after deducting the estimated expenses for the subscriptions with Warrants payable by the Company, totaling approximately EUR 0.2 million.
The proceeds from the Offering and the Warrants will be used to amortise EUR 0.8 million of capital loans and secure the Company's working capital need of approximately EUR 4.9 million (including the repayment of capital and interest of the bridge loan financing of approximately EUR 0.8 million) so that the Company can deliver signed and potential upcoming orders in 2019 and to pursue a systematic streamlining of operations, achieve profitability targets and be able to respond to increased demand.
The Company is offering up to of 1,057,615,242 new shares in the Company for subscription primarily in accordance with the shareholders' preferential subscription right. The Offering is secured to 80 per cent.
The following function as subscription locations:
Subscriptions in Sweden are also received by custodians and account operators who have an agreement with Mangold Fondkommission AB regarding the reception of subscriptions.
Savosolar has prepared a prospectus relating to the Offering approved by the Finnish Financial Supervisory Authority on 22 February 2019. The official Finnish language version of the prospectus as well as its unofficial English language translation, including a Swedish summary, is available on Savosolar's website (http://www.savosolar.com) and Mangold Fondkommission AB's website (www.mangold.se) approximately as per 22 February 2019.
Investor meeting with Savosolar is to be arranged on 7 March 2019 at Mangold Fondkommission AB's Stockholm Office, Engelbrektsplan 2, 114 34 Stockholm. For more information visit Mangold Fondkommission AB's website, www.mangold.se.
Please confirm your attendance by e-mail: savosolar@mangold.se
Mangold Fondkommission AB is acting as financial advisor to the Company in the Offering. Smartius Oy is acting as the legal adviser to the Company on aspects of the Offering related to the Finnish law.
SAVOSOLAR PLC
Savosolar Plc
Managing Director Jari Varjotie
Phone: +358 400 419 734
E-mail: jari.varjotie@savosolar.com
Savosolar Plc discloses the information provided herein pursuant to the Market Abuse Regulation ((EU) No 596/2014, "MAR"). The information was submitted for publication by the aforementioned person on 22 February 2019 at 12:45 p.m. (CET).
www.savosolar.com
, info@augment.se,
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti