Sivers Semiconductors: A Strategic Move with a Directed Share Issue
Wednesday, Jan 15, 2025 12:31 pm ET
2min read Sivers Semiconductors, a leading technology company, has announced its intention to carry out a directed share issue, aiming to raise approximately SEK 105 million. This strategic move is set to strengthen the company's working capital and support its ongoing customer product development efforts and key product and procurement initiatives. The directed share issue is expected to be completed in two separate tranches, with the first tranche consisting of up to 26,100,000 shares and the second tranche subject to approval from an extraordinary general meeting.
The directed share issue is intended to be carried out with deviation from shareholders' preferential rights and is resolved upon by the Board of Directors, partly pursuant to the authorization granted by the annual general meeting on 15 May 2024 and partly subject to subsequent approval by an extraordinary general meeting. The subscription price and allocation of shares in the directed share issue will be determined through an accelerated bookbuilding procedure, which is expected to commence immediately after the publication of this press release and end prior to the commencement of trading on Nasdaq Stockholm on 16 January 2025.
The proceeds from the directed share issue will be allocated as follows:
* Supporting essential customer product development efforts to meet specific client requirements and drive tailored solutions.
* Facilitating key product and procurement efforts to support the Company's growth and operations.
The expected benefits for the company's growth and operations include:
* Strengthening the Company's working capital.
* Supporting the Company's ongoing customer product development efforts to meet specific client requirements and drive tailored solutions.
* Facilitating key product and procurement efforts to support the Company's growth and operations.
* Refinancing the Company's outstanding debt facility, which amounts to SEK 132 million, of which SEK 119 million is with Fenja Capital and partners, maturing on 30 May 2025. Fenja Capital and partners have the right to request a rights issue upon default if no other arrangements can be agreed upon. The Company is in discussions with both existing and potential new lenders regarding the refinancing of the outstanding debt facility. The remaining SEK 13 million falls due at the completion of the Directed Share Issue.
The directed share issue is expected to have a significant impact on Sivers Semiconductors' share price and market capitalization. The company is planning to issue 20,695,650 new ordinary shares at a subscription price of SEK 7.25 per share, raising gross proceeds of approximately SEK 150 million. This represents an increase of approximately 8.8% of the capital and 8.9% of the votes for existing shareholders based on the total number of shares and votes in the Company after the Directed Issue.
The subscription price of SEK 7.25 per share is a discount of approximately 9.4% in relation to the closing price on Nasdaq Stockholm on April 4, 2023. This discount may indicate that the market perceives the new shares as undervalued, which could lead to an increase in demand for the shares and potentially drive up the share price.
However, the dilution effect of the directed share issue should also be considered. The increase in the number of shares outstanding will dilute the ownership and voting rights of existing shareholders. This could potentially lead to a decrease in the share price if the market perceives the dilution as negative.
In conclusion, the directed share issue by Sivers Semiconductors is a strategic move aimed at strengthening the company's working capital and supporting its growth and operations. The impact on the share price and market capitalization will depend on the balance between the increased demand for the shares and the dilution effect. The market's perception of the value of the new shares and the company's prospects will also play a significant role in determining the ultimate impact on the share price and market capitalization.
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