Kollect on Demand Holding AB (publ) intends to be listed on Nasdaq First North Growth Market and to execute a directed share issue in connection with the listing

Nasdaq First North has approved Kollect’s application on admission of trading, provided that certain conditions are met.

The Offering in brief

• The Offering consists of a directed share issue of 1,785,713 shares corresponding to SEK 24.6 million before issue costs.
• In addition to the shares in the Offering the Company has decided to issue a maximum of 267,856 shares corresponding to an amount of maximum SEK 3.75 million, if the Offering is oversubscribed (the “Overallotment Issue”). The primary purpose of the Overallotment Issue is to enable stabilisation measures after the listing.
• The subscription price in the Offering and the Overallotment Issue is SEK 14 per share, corresponding to a pre-money value of the Company’s share value of approximately SEK 50 million.
• In total, 2,053,569 shares can be issued in connection with the Offering and Overallotment Issue, provided that the Overallotment Issue is fully exercised.
• The subscription period for the Offering runs from 25 November 2019 to 10 December 2019.
• Subscription undertakings corresponding to 38.9 percent of the Offering has been provided by external investors and current shareholders.
• The Company’s current shareholders has entered into lock-up agreements regarding 100 per cent of the shares in the Company before the Offering during a period of twelve (12) months from the first day of trading.
• Nasdaq First North has approved Kollect’s application for the admission of trading, provided that a few conditions are met. Estimated first day of trading on Nasdaq First North is 19 December 2019. The share will be traded under the short name KOLL with ISIN code SE0013512019.

Background and rationale
Kollect is a technology company engaged in waste disposal services. The Company provides solutions divided within two separate, but related, business areas: waste collection and waste drop-off. Within the waste collection segment, the Company facilitates services through its online platform. Services include domestic waste collection, commercial waste collection, container (or skip) hire and removal of items such as furniture, mattresses and other large objects.

Within the waste drop-off segment, the Company provides large, smart compactor bins, called BIGbin, installed at different convenient locations throughout Ireland. The BIGbin allows for disposal of domestic waste and serves as an alternative to long-term waste contracts for collection.
Incorporated in December 2015, the founders identified two major issues within the waste disposal industry: (i) finding trusted, vetted and licensed contractors to collect different waste streams was difficult; and (ii) limited product offering leading to customers entering into contracts with fixed collection dates. Realising customers’ limitations and lack of innovation taking place within the waste collection industry, the Company initiated operations in Ireland with the intention of transforming that industry. The Company’s revenue since its incorporation has grown continuously, along with its customer base. In 2018, the Company’s revenue amounted to approximately EUR 2.3 million.
The board of directors and management of Kollect are of the opinion that this is an appropriate time to expand the Company’s shareholder base and apply for listing on Nasdaq First North due to the market’s prominent role as a leading MTF for technological growth companies. Thus, the board considers the market to resonate well with the Company’s business stage and technological profile. The Company further believes that the listing could increase the Company’s ability to accelerate growth by enhancing the Company’s access to growth capital and attract investors and management with a deep understanding of technology.
The Offering and listing will support the Company’s continued growth through geographical expansion and customer acquisition whilst the access to the capital markets will increase awareness and credibility of the Company among potential customers and investors.

Through the Offer, a mandatory conversion of convertible loans in connection to the listing and the Overallotment Issue, the Company can receive a maximum of SEK 29.3 million, before deductions for transaction costs expected to amount to SEK 4.6 million for the Offer and SEK 100,000 for the Overallotment Issue. The net cash proceeds of approximately SEK 24.6 million will be used to finance the following activities, which are stated in priority order:

• About 60 percent is intended to be used for sales and marketing, including entry into the market in up to seven new cities.
• About 15 percent is intended to be used for investments in technology and product development.
• About 15 per cent is intended to be used to repay short-term loans.
• About 10 percent is intended to be used for general purposes and administration.

Prospectus

A prospectus with the complete terms of the Offering has today been published and is available on Kollect’s website, https://plc.kollect.ie/ and on Mangolds website, www.mangold.se.

Indicative timetable

Investment meetings

Stora Aktiedagen Stockholm, Aktiespararna, 25 November 2019, 08:00 am in Stockholm
Investment meeting, Mangold, 3 December 2019, kl. 12.00 in Stockholm
Investment meeting, Mangold, 4 December 2019, kl.12.00 in Malmö

Subscription
The notification of the wish to subscribe for shares in the Offer must be made through;

• A subscription form available on Kollects website, https://plc.kollect.ie/, and on Mangold’s website www.mangold.se.
• Digital signing with bank-ID through Mangolds website www.mangold.se.
• Customers of Nordnet Bank AB (“Nordnet”) can sign up for the Offering to subscribe for shares directly over the Internet. Further information can be obtained at www.nordnet.se.

Adviser
Mangold is financial adviser and the Company’s Certified Adviser. Eversheds Sutherland Advokatbyrå AB is legal adviser to the Company.

For more information, please contact:
John O’Connor, CEO
+353 87-1218907
john@kollect.ie

About Kollect
Kollect is a technology company that offers waste management solutions. The company’s solutions are divided into two separate - but closely related - business areas: waste collection and waste disposal. Within waste collection, the Company facilitates services through its network-based platform. The services include collection of household waste, collection of commercial waste, container rental and disposal of refuse such as furniture, mattresses and other large objects.

Important information
The information contained in this announcement does not constitute an offer to purchase, subscribe for or, in any other way, to trade with shares or other securities in the Company. The Offering to the concerned persons to subscribe for shares in the Company is made exclusively through the prospectus that has been published by the Company today.

No action has been taken to permit a public offering in any jurisdiction other than Sweden, Ireland. The Offering is not directed to persons resident in the United States, Australia, New Zeeland, Hong Kong, Japan, Canada, Switzerland, Singapore, South Africa or other jurisdictions where participation would require additional prospectus, registration or measures other than those pursuant to Swedish law.

The information contained in this announcement released, published or distributed, directly or indirectly, in or to the United States (including its territories and provinces, every state in the United States and District of Columbia (the “United States”), Australia, New Zeeland, Hong Kong, Japan, Canada, Switzerland, Singapore, South Africa or other jurisdictions where such release, publication or distribution, in whole or in part, would be unlawful, subject to legal restrictions or would require registration or any other measures other than those pursuant to Swedish law. The information contained in this announcement may not be forwarded, reproduced or presented in any other way that is contrary to such restrictions. Failure to comply with these instructions may constitute a breach of in the United States Securities Act 1933, as amended (the “Securities Act”) or applicable laws in other jurisdictions.

No shares or other securities in the Company have been registered, and no shares or other securities in the Company will be registered, pursuant to the Securities Act or any other securities legislation at any time in force and may not be offered, sold or in any other way transferred, directly or indirectly, in or to the United States.
Forward-looking information
This press release may contain certain forward-looking information that reflects Kollect’s current views on future events as well as financial and operational development. Words that are “intended”, “come”, “judged”, “expected”, “can”, “plan”, “appreciate” and other expressions that imply indications or predictions about future developments or trends, constitute forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties because it depends on future events and circumstances. Forward-looking information does not constitute a guarantee of future performance or development and actual outcomes may differ substantially from what is stated in forward-looking information. This information, the opinions and the forward-looking statements contained in this press release are valid only on this date and may be amended without notice. Kollect makes no representations about publishing updates or revisions of forward-looking information, future events or similar circumstances other than the applicable law.