DonkeyRepublic Holding A/S intends to carry out a private placement

 Company announcement No. 13 – 2024
*Contains inside information*

DonkeyRepublic Holding A/S intends to carry out a private placement of new shares against cash contribution at market price, raising gross proceeds of DKK 14.9M.

The intended private placement of new shares is committed by 4 investors, both new and existing. The private placement is supported by 2 new professional investors participating in the private placement. The private placement is carried out at market price subject to authorisation by the Company’s general meeting.

As disclosed in the H1-2024 report, Donkey Republic would actively seek to secure funding for fleet and organic growth investments, and this is now being executed. Donkey Republic is experiencing a high demand for its bike sharing solutions in its core markets which has given the company several realistic opportunities of onboarding new long term city contracts. These contracts will be directly contributing to the profitability strategy which will set up the company for a profitable growth path beyond 2024. The capital raise is now aimed primarily at giving Donkey Republic the possibility to provide the necessary capital for fleet and growth investments to onboard new long term contracts. 

The capital raise and onboarding of new long term contracts is expected to strengthen the position of the company in three ways 

• Delivering on the profitable growth strategy in 2025 and the years beyond
• Improve the balance sheet of the company by improving debt/equity ratio and therefore improving long term outlook to onboard capital for growth in 2025 and beyond
• Strengthen future cash flow from operations

“The intent of completing a capital raise is to capture demand and market opportunities. We have in the past years rolled out several cities on long term contracts of 3-10 years which supports our vision of working with cities, working for sustainable growth for long term business and for achieving profitability. The capital raise is therefore in accordance with and part of the execution of the outlined profitability strategy, but also lays the groundwork for the next level of our future growth.”  says CEO Niels Henrik Rasmussen. 

The Private Placement is subject to approval by the Company’s general meeting and the Board will by separate announcement call for an extraordinary general meeting asking to refill the current authorisation to the Board, to issue new shares in order to carry out the capital increase for the Private Placement. The extraordinary general meeting will be held on 12 November 2024 at 11.00.