Savosolar announces plan to arrange a rights issue of approximately 5.3 MEUR

Savosolar Plc Company Announcement:    19 December at 8.00 a.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...

London, 19/12/2018 (informazione.news - comunicati stampa - energia)

Savosolar Plc
Company Announcement:    19 December at 8.00 a.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 an increased market activity in 2017, the positive development has continued in 2018. Solar heating will generate over 1 TWh (= 1 billion kilowatt hours) globally for the first time this year and according to market estimates, the solar district heating capacity is expected to increase to 240 TWh by 2050. Furthermore, international institutions and governments continue to incentivise corporate use of environmental-friendly energy solutions through support schemes, taxation and subsidies resulting in overall higher interest from a varied range of customers.

In turn, Savosolar has experienced strong sales growth with revenues totaling EUR 1.33 million in H1 2018, resulting in a 117 per cent increase compared to the corresponding period in 2017. Moreover, the Company entered into order agreements totaling EUR 6.4 million during 2018. Whilst Savosolar is well-positioned in terms of production capacity, new orders and overall higher demand, the Company requires additional working capital and financial capacity to execute on projects to be delivered in 2019. Considering the Company's position with large orders to be completed in 2019 the Company plans to carry out a capital raise.

Savosolar intends to use net proceeds from the Offering for the following:

The Board of Directors of the Company is planning to offer up to 1,057,615,242 new shares and additional warrants amounting to 352,538,414 for subscription in accordance with the shareholders' preferential subscription rights, under the condition that the Extraordinary General Meeting to be summoned gives authority to the Board of Directors to resolve on the Offering and the issuance of Warrants. The main terms for the Offering are presented below:

The size of the contemplated Offering will be approximately EUR 5.3 million. The Offering has been secured to 80 percent through subscription commitments and underwriters. All members of the Company's Board of Directors and the Company's CEO have entered into subscription commitments in the Offering. External underwriters are entitled to receive their underwriting compensation either in cash amounting to ten (10) per cent of underwritten amount, or the equivalence of twelve (12) per cent of the underwritten amount in new shares by setting off the underwriting compensation against the subscription price in a directed issue to be arranged if needed after the Offering.

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
Managing Director, Jari Varjotie
Phone: +358 400 419 734
e-mail: jari.varjotie@savosolar.com

This company announcement contains information that Savosolar Plc is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication by aforementioned contact person on 19 December 2018 at 8.00 a.m. (CET).

This release or the information contained therein shall not be distributed, directly or indirectly, in Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or the United States. The information contained in this release do not constitute an offer of, or invitation to purchase any securities in any area, where offering, procurement of or selling such securities would be unlawful prior to registration or exemption from registration or any other approval required by the securities regulation in such area. This release is not an offer for sale of securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended, and the rules and regulations issued by virtue of it. Savosolar has not registered, and does not intend to register, any offering of securities in the United States. No actions have been taken to register the shares or the offering anywhere else than in Finland and Sweden.

The information contained herein shall not constitute an offer of, or invitation to purchase any securities in any jurisdiction. This release is not a prospectus and does not constitute any offer, invitation or investment advice to subscribe for or purchase securities. Investors should not subscribe for or purchase any securities or make any investment decisions referred to herein except on the basis of information contained in a prospectus issued by Savosolar.