Azelio plans USD-28m rights issue to beef up financial position

TES.POD energy storage unit. Image by Azelio.

September 16 (Renewables Now) - Swedish energy storage technology developer Azelio AB (FRA:4AZ) announced on Thursday that its board of directors has decided to undertake a fully-guaranteed rights issue to raise up to SEK 300 million (USD 28m/EUR 28.1m) in order to bolster the company’s financial position.

Azelio plans to issue enough units, consisting of new shares and warrants, to secure the financing it would require through the first half of 2023. If the rights issue is not fully subscribed, the company may need to seek additional financing, it noted.

“The transaction gives us the opportunity to realise the plan we developed last spring, which is expected to lead to us establishing ourselves in the market and beginning to generate positive cash flow next year,” commented CEO Jonas Wallmander.

The Gothenburg-based company estimates it will raise roughly SEK 250 million in net proceeds of which up to SEK 110 million will be invested in speeding up the commercialisation of its TES.POD system. Another portion of up to SEK 70 million will be spent on supporting ongoing operations and the rest will be used for production investments in core technology and continued product development.

A number of board members, including the company’s largest shareholder Kent Janer, have committed to subscribe for a total of SEK 31 million worth of units, representing about 10% of the rights issue. Guarantors have provided guarantee commitments for the rest.

The prospectus for the transaction is scheduled to be published on September 28, while the record date for the rights issue is set for September 30. The outcome will be announced on October 20, 2022.

(SEK 1 = USD 0.093/EUR 0.094)

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