NOT FOR DISTRIBUTION, PUBLICATION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO
The Private Placement comprised an offer of up to 65,000,000 shares (the "
The net proceeds from the Private Placement will be used to finance the Company's further growth, including the Company's working capital needs in relation to continuous product development and ramp-up of production and sales activities, some of which are of an immediate nature.
The Private Placement is divided into two tranches, of which the first tranche comprises 38,137,038
Both Tranche 1 and Tranche 2 will be settled on a delivery-versus-payment (DVP) basis with existing and unencumbered shares already listed on Euronext Expand, pursuant to a share lending agreement (the "Share Lending Agreement") entered into between the Company, certain lager shareholders of the Company (the "Share Lenders") and
Completion of Tranche 2 is subject to (i) completion of Tranche 1, (ii) the EGM resolving to issue the Tranche 2 Offer Shares, and (iii) the Share Lending Agreement remaining in full force and effect (the "Tranche 2 Conditions"). Completion of Tranche 1 will not be conditional upon or otherwise affected by the completion of Tranche 2, and the applicants' acquisition of Tranche 1 Offer Shares will remain final and binding and cannot be revoked, cancelled or terminated by the respective applicants if Tranche 2, for whatever reason, is not completed. Investors being allocated
The Tranche 1 Offer Shares are tradable from allocation, while the Tranche 2 Offer Shares will be tradable, subject to, and following (i) satisfaction of the Tranche 2 Conditions and (ii) the Company having published a stock exchange announcement regarding the approval of Tranche 2 by the EGM.
The board of directors has today resolved to issue the Tranche 1 Offer Shares based on the Board Authorisation. After registration of the share capital increase, the Company's share capital will be increased by
The board of directors has carefully considered the Private Placement in light of the equal treatment obligations under the Norwegian Public Limited Liability Companies Act, the Norwegian Securities Trading Act, Oslo Børs Rule Book II and Oslo Børs' guidelines on the rule of equal treatment, and is of the opinion that the Private Placement is in compliance with these requirements. It is in this respect relevant that the Company has an immediate need of additional equity to finance its further growth, including working capital in relation to continuous product development and ramp-up of production and sales activities. A rights issue would take substantially longer to complete, which could significantly impair the Company's situation. The board of directors has, in addition to considering the possibility of conducting a rights issue, looked into other financing alternatives (bank financing and direct lending) and concluded that such alternatives are not available. Given the Company's financial situation, it has been deemed necessary to determine the Offer Price through discussions with investors, and the discount to the market price of the shares is deemed to have a factual basis because the Company does not have access to alternative sources of financing.
The board of directors will propose to the EGM that it is granted an authorisation to carry out a subsequent offering (the "Subsequent Offering") of up to 32,500,000 new shares in the Company, directed at shareholders in the Company as of
The net proceeds from the Subsequent Offering will be used for general corporate purposes, including working capital needs in relation to continuous product development and ramp-up of production and sales activities. The Subsequent Offering will be conditional upon the approval of the EGM, as well as the completion of the Private Placement. The application period for the Subsequent Offering is expected to commence shortly after the publication of the Prospectus (as defined below). The Company will issue a separate stock exchange announcement with further details on the Subsequent Offering.
Against this background, the board of directors has considered the Private Placement to be in the common interest of the Company and its shareholders. Due to the structure of the Private Placement, the shareholders' preferential rights will be waived.
The Company will publish a prospectus for the listing of the Tranche 2 Offer Shares to be redelivered to the Share Lenders, subject to approval by the EGM, as well as the offer and listing of new shares in connection with the Subsequent Offering (the "Prospectus"). Publication of the Prospectus is subject to approval of the Prospectus by the
Based on the above, the board of directors has decided to propose to the EGM that:
- the Company's share capital is increased by
NOK 4,384,370.12 by the issuance of 16,862,962 new shares, each with a nominal value ofNOK 0.26 , at a subscription price ofNOK 0.40 in connection with completion of Tranche 2;
-
the board of directors is granted an authorisation to increase the Company's share capital by up to
NOK 8,450,000 , by the issuance of up to 32,500,000 new shares, each with a nominal value ofNOK 0.26 , at a subscription price ofNOK 0.40 , in connection with the Subsequent Offering; and
-
the board of directors is granted a new authorisation to increase the Company's share capital by up to
NOK 12,775,630 (approximately 20% of the Company's share capital after completion of Tranche 2) in connection with acquisitions of other companies or businesses, to secure an optimal capital structure for the Company and to capitalise on potential growth opportunities, as well as to finance further growth and the continued product development and commercialisation of the Company's business, which authorisation will replace the Board Authorisation.
For further information, please contact:
Jørgen Mann, Interim CEO
Mobile: +45 408 67 558
E-mail: jorgen.mann@observemedical.com
Mobile: +47 958 12 765
E-mail: johan.fagerli@observemedical.com
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act. The information was submitted for publication by
About
The Company seeks to drive growth by leveraging its expertise in sales and commercialisation of its broad portfolio of medical technology products, mainly in urine measurement and ultrasound, in combination with targeted M&A and distribution.
The Company is headquartered in
Further information is available at www.observemedical.com.
***
IMPORTANT INFORMATION
The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy, fairness or completeness. Neither the Settlement Agent, nor or any of its affiliates or any of their respective directors, officers, employees, advisors or agents accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available, or for any loss howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith. This announcement has been prepared by and is the sole responsibility of
Neither this announcement nor the information contained herein is for publication, distribution or release, in whole or in part, directly or indirectly, in or into or from
This announcement is not an offer for sale of securities in
This announcement is an advertisement and is not a prospectus for the purposes of Regulation (EU) 2017/1129 of the
In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the EU Prospectus Regulation, i.e. only to investors who can receive the offer without an approved prospectus in such EEA Member State.
This communication is only being distributed to and is only directed at persons in the
This announcement is made by, and is the responsibility of, the Company. The Settlement Agent and its affiliates are acting exclusively for the Company and no-one else in connection with the transactions described in this announcement. They will not regard any other person as their respective clients in relation to the transactions described in this announcement and will not be responsible to anyone other than the Company, for providing the protections afforded to their respective clients, nor for providing advice in relation to the transactions described in this announcement, the contents of this announcement or any transaction, arrangement or other matter referred to herein.
In connection with the transaction described in this announcement, the Settlement Agent and any of its affiliates, acting as investors for their own accounts, may subscribe for or purchase securities and in that capacity may retain, purchase, sell, offer to sell or otherwise deal for their own accounts in such securities of the Company or related investments in connection with the transactions described in this announcement or otherwise. Accordingly, references in any subscription materials to the securities being issued, offered, subscribed, acquired, placed or otherwise dealt in should be read as including any issue or offer to, or subscription, acquisition, placing or dealing by, the Settlement Agent and any of its affiliates acting as investors for their own accounts. The Settlement Agent does not intend to disclose the extent of any such investment or transactions otherwise than in accordance with any legal or regulatory obligations to do so.
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "aim", "expect", "anticipate", "intend", "estimate", "will", "may", "continue", "should" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies, and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies, and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. The Company, the Managers and their respective affiliates expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this announcement whether as a result of new information, future developments or otherwise. The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice.
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