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#Nexam: Directed share issue

NexamLogoNexam Chemical today announces that the company has completed a directed new share issue of 3,000,000 new shares, providing the company with SEK 67.5 million before reduction of transaction costs.

The directed new share issue, which was announced on March 13, 2014, has allowed Nexam to issue 3,000,000 new shares to international institutional investors and qualified investors in Sweden at a price of SEK 22.50 per share through an accelerated book-building process. The proceeds from the new share issue are intended to be used to finance and enabling the continuance of a high rate of expansion and the development of the company, its markets and products. The completed new share issue strengthens the financial position and enables an accelerated high rate of expansion and increased market penetration of Nexams unique product offering.

Says Nexam CEO Per Palmqvist Morin: “It is pleasing to see that interest in participating in the offering has been great among both Swedish and international institutional investors.”

The new issue results in an equity dilution of 5.8 per cent based on the number of shares after the new share issue. The subscription price has been established through a customary book-building process. In relation to the 10 day volume weighted average share price on the last trading day before the resolution on issuance of new shares, the subscription price corresponds to a discount of approximately 14.1 per cent. In relation to the market close price on March 13, 2014, the subscription price corresponds to a discount of approximately 8.9 per cent. Current major shareholders have undertaken to temporarily lend required number of shares to facilitate expeditious delivery to the share subscribers.

We interpret the directed share issue as an encouraging sign that things are moving forward at high-speed for Nexam. Furthermore, broadening the investors base with international institutions is a welcome move ahead of the upcoming relisting to Nasdaq OMX Small Cap. We would not be surprised to see further important commercial orders being announced in the near future.

Nordic Investor

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