Gomspace: Rights issue moving ahead - ABG
Raising SEK 122m at a SEK 1.3 subscription price
The board of directors has, with support of the authorisation from the annual general meeting held on 22 April 2022, resolved on a rights issue of up to 94,094,644 new shares at a subscription price of SEK 1.30 per share with preferential rights for the Company’s existing shareholders. The Rights Issue is covered by subscription undertakings corresponding to approximately 44 per cent of the Rights Issue through a convertible loan provided by a consortium consisting of the Company’s largest shareholder The Hargreaves Family No. 14 Settlement as well as board members and members of the executive management.
Subscription is backed by cornerstone investor
The net proceeds from the Rights Issue are intended to be used for investment in internal research and development projects relating to an enlarged satellite platform, for operating expenses, to finance the working capital needs consisting of supplier payments, and for general corporate purposes Upon full subscription in the Rights Issue, the Company will receive approximately SEK 122 million (of which approximately SEK 53.6 million is expected to be contributed by way of set-off of the convertible loan) before deduction of costs related to the Rights Issue, which are estimated to amount to around SEK 4 million. For the sake of clarity, the loan amount under the convertible loan agreement has already been received by the Company meaning that conversion into new shares in the Rights Issue (through set-off) will reduce existing debts of the Company
Deeply discounted subscription price, to secure LT viability
Overall, the subscription price indicates a material ~57% discount to the latest close. However, given the current outlook, we see the right issue as needed, to secure liquidity and momentum of executing on the long-term strategic objectives. Regarding the timeline, a prospectus is expected on 31 March and the final outcome is expected on the 21 April.
Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/gomspace/Equity-research/2023/3/gomspace---rights-issue-moving-ahead/