Sweden's Minesto eyes USD 9m from rights issue

Swedish marine energy developer Minesto AB plans to raise some SEK 86 million (USD 8.9m/EUR 8m) in gross proceeds from a rights issue.

The company intends to issue up to 6.08 million units at a subscription price of SEK 14.12 per unit. Each unit contains one share and one warrant for subscription of shares, exercisable no later than April 30, 2021.

Late last month, Minesto raised SEK 60 million gross from a directed issue of units. The company plans to use the combined proceeds from the two transactions to step up the commercialisation of its technology. More specifically, about 60% of the funds will go towards the completion, further development and expansion of the first production facilities in the company's current projects in the UK, the Faroe Islands, Taiwan and France, it said.

If all warrants in the two transactions are exercised by the set date, Minesto will get an additional SEK 201 million in proceeds, which it plans to spend on expanding the first large-scale commercial parks.

The rights issue will run from December 4 till December 18, 2019. Minesto's largest shareholder, BGA Invest AB, has pledged to subscribe for units with a combined value of SEK 20 million.

(SEK 1.0 = USD 1.030/EUR 0.933)

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