NOK 11 million financing to execute strategy and growth plan
2013-08-30 17:06:54
Nio Inc. ("Nio" or the "Company") has strengthened
its overall financial cash position through a
combination of a share issue, a new loan facility and
conversion of debt to new shares. This will enable
the Company to resume its marketing spending to
previous levels and to secure future growth both
within its auction and gambling business.
A private placement has been completed and a total of
2,230,000 shares have been subscribed for at a
subscription price of NOK 1.45 per share. The total
gross proceeds from the private placement is NOK
3,233,500. As a part of the placement the subscribers
receive 1 warrant for each 3 shares subscribed, a
total of 743,334 warrants with the right to purchase
one NIO share for NOK 1.50 within the next 2 years.
Nio has also entered into a new NOK 8 million loan
agreement with an interest of 6 % per annum and
maturity on May 1, 2014. The lender will also receive
call options to purchase 6.15 million Nio shares from
Nio's three principle shareholders at a share price
of NOK 1.30 per share. The call options commence on
January 1, 2014 and expire on August 31, 2015.
In March and April 2013, Nio entered into loan
agreements with its three principle shareholders,
whereby a total of NOK 8.4 million was borrowed by
the Company. The three principle shareholders have
subsequently transferred these loans to a third
party. As part of the refinancing, these loans
including accrued interest have been converted into
new shares at a conversion price of NOK 2.20. In
addition, Nio has reached acceptance from other
creditors to convert an additional NOK 4.3 million of
debt into new shares at a share price of NOK 1.50.
The total number of new shares to be issued for debt
conversion is 6,820,643.
Combined, a total of 9,050,643 new shares will be
issued, resulting in an increase in the share capital
of Nio by USD 905,064, from USD 15,092,431 to USD
15,997,495 and the outstanding number of shares will
be increased from 150,924,309 to 159,974,952, each
with a nominal value of USD 0.1 per share. The share
capital increase was resolved by the Board of
Directors within the authorized shares of the
Company. The new shares are expected to be issued on
or around September 3, 2013.
The subscribers in the Private Placement and the
creditors converting to new shares will receive
existing shares in the Company that are already
listed on Oslo Stock Exchange, pursuant to a share
lending agreement entered into between Carnegie AS,
Nio and one of the Company's principal shareholders.
For more information, please contact: Brian Palm
Svaneeng Mertz, CEO, tel: +45 2390 3300.
About Nio Inc.
Nio Inc. has two primary business areas; internet
auctions and online gaming. Nio owns and operates
Internet auction sites which offer a unique and
entertaining way to shop on the Internet, and the
gaming sites Panda365.com, Lunacasino.com and
Lunacasino.dk. Nio Inc. is a US company with its
headquarter in Oslo, Norway and listed on the Oslo
Stock Exchange (ticker: NIO).