By Susanna Moon
Chicago, May 30 Savo-Solar plc said it plans to price a 4.3 million rights issue.
The offering will consist of up to 70,938,664 new shares, representing about 57% of the total number of the companys shares outstanding after the offering, according to a company announcement.
The subscription price is expected to be 0.06 per share, which is a 62.5% discount to the closing price of the company's shares on First North Finland on May 26, the release noted.
The record date is June 9, with the last day of trading including the subscription rights on June 7 and the first day of trading excluding the subscription rights on June 8.
The subscription period is expected to run from June 14 until June 30.
In addition, Savo-Solar said it is planning to offer each subscriber of the shares one warrant for each three shares subscribed.
The subscription price for the shares based on the warrants will be defined based on volume weighted average price of the company's shares in First North Finland during the last 10 trading days before the beginning of the subscription period, with a minimum price of 0.06 per share and a maximum price of 0.09 per share. The maximum number of warrants would be 23,646,221 if the offering were fully subscribed.
The issuer will raise a maximum of about 2.1 million through the warrants if all are subscribed at the maximum subscription price of 0.09 per share.
The offering is underwritten to about 60% by current shareholders and external underwriters.
An additional bridge financing of 600,000 has been raised as working capital until the proceeds of the offering are received in July. Interest on the bridge loan is 7.5%.
Proceeds will be used to secure working capital so that the company can deliver signed and upcoming orders in 2017-2018 and expand its operations to new markets as well as for the repayment of the capital and interest of the bridge loan financing.
Savo-Solar manufactures solar thermal collectors and provides solutions for large district heating plants. The company is based in Mikkeli, Finland.
| Issuer: | Savo-Solar Ltd.
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| Issue: | Rights issue
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| Amount: | 4.3 million
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| Shares: | 70,938,664 maximum
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| Price: | 0.06 expected
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| Subscription period: | June 14 through June 30
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