DistIT: In the eye of the perfect storm - ABG

'23e-'24e EBIT cut by 53-40%
Rights issue of ~SEK 98m
EFUEL earn-out solution in place


Q4 results, rights issue and earn-out solution

Q4 was softer than we expected, with Q4 sales and adj. EBITDA 13% and 63% below our estimates, respectively. In conjunction with the release of the Q4 results, the company also announced a SEK 98m rights issue that implies 50% dilution given 100% subscription, implying a post-money valuation of ~SEK 197m. The purpose of the rights issue is to remedy a covenant breach and satisfy commitments to bondholders. Moreover, the earn-out that relates to the EFUEL acquisition has been postponed until the earliest of June 2025 or when the outstanding bonds have been fully repaid.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/distit/Equity-research/2023/2/distit---in-the-eye-of-the-perfect-storm/