Axactor AB - Completed Private Placement

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Oslo, 23 May 2017 - The Board of Directors of Axactor AB (Axactor or  the Company) has decided to issue 50 million new shares through a  private placement (the Private Placement), raising total gross  proceeds to the Company of approximately NOK 107.50 million. The  shares are issued at a price of NOK 2.15 per share, which is equal  to the closing price on May 22, 2017.

The Private Placement was based on strong interest from high quality  institutional investors. These investors both support the Company  today through the share-issue, but also potentially longer-term as  the Company pursues strategic growth initiatives. Axactor has  experienced a high deal flow in the market lately and also noticed a  recent increase in size of portfolio opportunities, highlighting the  need to be well-funded and supported by strong shareholders.   

The net proceeds from the Private Placement will be used for  acquisitions of non-performing loan portfolios in existing  geographies, as well as for general corporate purposes.  

Notification of allotment will be sent to the applicants by Carnegie  (as the Manager) on or about 23 May, 2017.  

The new shares will be issued under the Company's existing authority  to issue shares, adopted by the annual general meeting in 2016.  Following the registration of the new share capital, the Company  will have 1,276,488,769 shares outstanding and a total share capital  outstanding of EUR 66,814,382.05.   

The share issuance was carried out as a private placement to secure  completion of a transaction at a time when specific interest  surfaced in the market and in order to complete a transaction  without the significant discount typically seen in rights issues.  Additionally, Axactor recognizes the benefit in further developing  the Company's shareholder base.  

As a consequence of the private placement structure, the  shareholders' preferential rights were deviated from. After due  considerations, the Board of Directors of the Company is of the  opinion that the Private Placement is in the best interest of the  Company and its shareholders. The Board of Directors has taken into  consideration, among other things, the fact that the Private  Placement will further strengthen Axactor's financial position and  support the Company in its continued pursuit of growth  opportunities, that the Private Placement only constitutes 4.08% of  the issued and outstanding shares in the Company, and the fact that  the subscription price is equal to the current market price of the  shares. The Board of Directors is of the opinion that there are  sufficient reasons to deviate from the shareholders' pre-emption  right to subscribe for the new shares.   

Carnegie acted as financial adviser to the Company in connection  with the Private Placement.  

 

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