The Board of Directors of OrganoClick AB (publ) (“OrganoClick” or “the Company”) today, on September 30, 2019, has decided on a directed cash issue of approximately 17.6 million shares at a subscription price of SEK 5.10 per share (” Placement “). Through the New Issue, the Company receives gross approximately SEK 90 million. The new share issue was carried out with deviation from existing shareholders’ preferential rights with the support of the authorization from the AGM on 16 May 2019.
The company will use the proceeds from the rights issue to
– Accelerate sales efforts in the non-woven biobased binder segment
– Expand the business area for green surface treatments & maintenance products through targeted market measures in the Nordic region and expansion into the German market
– Make investments to increase the level of automation in existing production in order to increase productivity and reduce manufacturing costs
– Create an improved and more economic capital structure
Mårten Hellberg, CEO of OrganoClick – Comments
“We are delighted by the confidence that a large number of Swedish and international investors have shown us by participating in this issue, which was clearly oversubscribed. We now have the means to accelerate our journey along the path of growth, and can make key investments and other operational investments. This will contribute to increased sales growth of our products that replace plastics and toxic chemicals, which will create value that will benefit all shareholders ”.
The subscription price in the New Issue was established through a so-called accelerated “book building” procedure, and corresponds to a discount of 7.3% against the closing price of the Company’s share on Nasdaq First North Growth Market on September 30, 2019.
The new share issue was subscribed by Swedish and international institutional investors, including the Fourth AP Fund, Handelsbanken Fonder and Aktia Asset Management. The reason for the deviation from existing shareholders’ preferential rights was mainly to diversify the shareholder base and to enable the acquisition of capital in a time and cost-effective way.
Through the New Issue, the number of shares in the Company increases by 17,647,058 to 92,112,789, and the share capital by SEK 176,470.59 to SEK 921 127.91. The rights issue will result in a dilution of existing shareholders of 19.2%, based on the number of shares in the Company after the rights issue.
In connection with the New Issue, the Company has undertaken, with the usual exceptions, not to issue additional shares for 180 days from 1 October 2019.
In connection with the New Issue, ABG Sundal Collier was engaged as sole bookrunner and Gernandt & Danielsson Law Firm as legal advisor.