Brief: Azelio Board Resolves On Partly-guaranteed Rights Issue Of Up To About SEK 350 Mln

Azelio AB

28/11/2019 11:04

Nov 28 (Reuters) - Azelio AB  AZELIO.ST :
    * THE BOARD OF DIRECTORS IN AZELIO HAS RESOLVED ON A PARTLY
GUARANTEED RIGHTS ISSUE OF UP TO APPROXIMATELY SEK 350 MILLION
    * SUBSCRIPTION PRICE IN RIGHTS ISSUE IS SEK 7.10 PER SHARE
    * NET PROCEEDS FROM RIGHTS ISSUE WILL BE USED TO FINANCE
CO'S
ONGOING OPERATIONS AND COMMERCIALISATION OF ITS THERMAL ENERGY
STORAGE AND STIRLING-BASED ELECTRICITY PRODUCTION TECHNOLOGY
    * IF RIGHTS ISSUE IS FULLY SUBSCRIBED, COMPANY WILL RECEIVE
APPROXIMATELY SEK 350 MILLION BEFORE DEDUCTION OF TRANSACTION
COSTS RELATED TO RIGHTS ISSUE
    * IF RIGHTS ISSUE IS FULLY SUBSCRIBED, BOARD OF DIRECTORS
DEEMS
COMPANY'S WORKING CAPITAL TO BE SUFFICIENT UNTIL SEPTEMBER 2020
    * SUBSCRIPTION PRICE CORRESPONDS TO DISCOUNT OF ABOUT
32%COMPARED
WITH THEORETICAL PRICE AFTER SEPARATION OF SUBSCRIPTION RIGHTS
    * BOARD OF DIRECTORS DEEMS THAT COMPANY THEREAFTER WILL NEED
ADDITIONAL CAPITAL AMOUNTING TO APPROXIMATELY SEK 300 MILLION
UNTIL COMPANY BECOMES CASH FLOW POSITIVE WHICH IT IS EXPECTED TO
BE AS FROM END OF 2021
    * SUBSCRIPTION PERIOD OF RIGHTS ISSUE IS SET TO 9-23
DECEMBER 2019
    * COMPANY EXPECTS SIGNIFICANT CASH FLOWS FROM EXTERNAL
CUSTOMERS
FROM BEGINNING OF Q2 OF 2021
    * ESTIMATES THAT, AS PART OF SAID ADDITIONAL FINANCING NEED
OF SEK
300 MILLION, COMPANY COULD RECEIVE UP TO SEK 150 MILLION IN
FINANCING FROM E.G. BANK LOANS, PUBLIC GRANTS AND SOFT LOANS
    * VERIFICATION PROJECT WILL BE CARRIED OUT IN MOROCCO
TOGETHER
WITH STATE-CONTROLLED MASEN, FROM Q4 OF 2019
    * INTENDS TO MAKE FURTHER INVESTMENTS IN PRODUCTION SUCH AS
IN
TOOLS AND PRODUCTION EQUIPMENT

Source text for Eikon:  ID:nWkr79l14b 
Further company coverage:  AZELIO.ST 

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