Renewcell completes a directed issue of 2,633,333 new shares to Swedish and international institutional investors, raising gross proceeds of approximately SEK 158 million
Kurs & Likviditet
Prenumeration
Beskrivning
| Land | Sverige |
|---|---|
| Lista | First North Stockholm |
| Sektor | Energi & Miljö |
| Industri | Miljö & Återvinning |
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The Board of Directors of Re:NewCell AB (publ) (“Renewcell” or the “Company”) has, based on the authorization granted by the annual general meeting held on 17 May 2022 and with deviation from the shareholders’ preferential right, resolved to carry out a directed share issue of 2,633,333 new shares at a subscription price of SEK 60 per share to Swedish and International institutional investors (the “Directed Share Issue”). The subscription price was determined through an accelerated book-building procedure performed by Nordea Bank Abp, filial i Sverige (“Nordea”) and Pareto Securities AB (“Pareto” and together with Nordea, the “Managers”). The Directed Share Issue was subscribed by a number of reputable Swedish and international institutional investors and existing shareholders, H&M Group and Girincubator AB (via the family affiliated Girindus Investments AB) among others.
The bookbuilding procedure which was announced by the Company earlier today has been completed. The Board of Directors of Renewcell has decided to carry out a directed issue of 2,633,333 new shares, at a subscription price of SEK 60 per share, consequently raising proceeds of approximately SEK 158 million before transaction costs.
The proceeds from the Directed Share Issue will be used to finance the negative profit effect (operational expenses), the increased CAPEX due to the delay of the production ramp-up as well as for general corporate purposes. As a result of the Directed Share Issue, the completion of the start-up process and the production ramp-up of Renewcell 1 to 60,000 metric tons in the first stage and then to 120,000 metric tons in a later stage, can be executed, without the need of additional equity, taking into account the delayed start-up and slower than expected production ramp-up.
Patrik Lundström, CEO of Renewcell, comments:
”We are pleased to see the continued interest for Renewcell, and the broadening of the shareholder base as a vote of confidence for our business model and long-term potential. Although somewhat delayed, we’ve built the plant (Renewcell 1) in record time with a very low CAPEX. By securing the financing to ramp-up Renewcell 1, we are cementing our market leading position in the value chain and addressing the supply gap for a commercial solution that enables fashion brands to become more circular. Today’s transaction creates the conditions for Renewcell’s continued journey towards becoming the worlds first industrial scale dissolving pulp plant using 100% recycled textiles as raw material.”
Due to the Directed Share Issue, the number of shares and votes in the Company will increase by 2,633,333 from 33,943,003 to 36,576,336. The Directed Share Issue entails a dilution of approximately 7.2 percent of the number of shares and votes in the Company (calculated as the number of newly issued shares divided by the total number of shares in the Company after the Directed Share Issue). The share capital will increase by SEK 67,209.06 from SEK 866,307.97 to SEK 933,517.03.
Prior to the Directed Share Issue, the Board of Directors has also considered the possibility to raise the required equity through a rights issue but concluded that a rights issue would be significantly more time-consuming and entail significantly higher costs and increased exposure to potential market volatility compared to the Directed Share Issue. Given the market volatility seen during 2022, that is still ongoing, the Board of Directors has assessed that a rights issue would also require a rather significant underwriting from a guarantor syndicate that would entail additional costs and/or additional dilution depending on the type of remuneration for such underwriting. The more time-consuming rights issue alternative would also further delay the initiation of the commercial start of the Renewcell 1 plant which in turn would lead to a corresponding delay of initiation of revenue generation that would cause a further need for external funding. The Company has concluded that a delayed commercial start is not in the best interest of the shareholders. Unlike a rights issue, the Directed Share Issue can also broaden as well as strengthen the shareholder base and provide the Company with new shareholders, which the Board of Directors considers to be of great benefit to Renewcell.
In the light of the above, the Board of Directors made the assessment that a Directed Share Issue with deviation from the shareholders’ preferential rights was the most favourable alternative for Renewcell and in the best interest of all the Company’s shareholders. As the subscription price in the Directed Share Issue was determined through a bookbuilding procedure at arm’s length, the Board of Directors assesses that the subscription price reflects current market value and demand.
Lock-up
The Company has, subject to customary exemptions, undertaken, in favour of the Managers, not to issue additional shares for a period of 180 calendar days from the settlement date of the Directed Share Issue.
Advisors
In conjunction with the Directed Share Issue, the Company has engaged Nordea as Sole Global Coordinator and Joint Bookrunner and Pareto as Joint Bookrunner. Advokatfirman Vinge KB is legal advisor to the Company and Baker & McKenzie Advokatbyrå KB is legal advisor to the Sole Global Coordinator and Joint Bookrunners.