Summary
- The board of directors of the Company has decided on the Rights Issue which was communicated on
June 11, 2024 . - The Rights Issue comprises a maximum of 6,254,559 shares. Upon full subscription of the Rights Issue, PMDS will receive approximately
SEK 27.5 million , before issue costs. - The Rights Issue is covered up to 80 percent by underwriting commitments.
- Those who are registered as shareholders on the record date of
August 15, 2024 , will receive one (1) subscription right for each one (1) share held on the record date. Ten (10) subscription rights will entitle to subscription of three (3) newly issued shares. - The subscription period for the Rights Issue is expected to take place from
August 19, 2024 toSeptember 2, 2024 . - To support
UK sales and the restructuring of the US company until the Rights Issue is completed, the Company has taken out bridge loans totallingSEK 12.0 million from Fenja Capital I A/S, Råsunda Förvaltning AB andGerhard Dal . - The Company will prepare an information memorandum regarding the Rights Issue, which is expected to be published on
August 16, 2024 (the “Information Memorandum”).
Background and rationale in summary
With the evolution of PMDS' business model to include Hospital At Home, and the recent acquisition of the US Remote Patient Monitoring business, PMDS has decided to take this opportunity to both accelerate its
Expected use of proceeds from the Rights Issue
Upon full subscription in the Rights Issue, PMDS will initially receive approximately
As PMDS continues to work towards its target of achieving significant Annual Recurring Revenue (ARR) to have positive cash flow by year end, PMDS will use the proceeds for both supporting the net cash requirements of each main business unit for the coming months, in addition to improving the balance sheet. It is indicatively expected that the net proceeds of approximately max.
- 20% will be used for supporting US operations
- 6% will be used to support scaling
UK sales activities - 14% for supporting group operations
- 60% to be used to support balance sheet improvements, including repayment of bridge loans
Terms of the Rights Issue
The Board of Directors of PMDS has resolved, based on authorization from the Annual General Meeting, to issue shares with preferential rights for the Company’s existing shareholders in accordance with the terms listed below.
- Those who are registered as shareholders on the record date of
August 15, 2024 will receive one (1) subscription right for each one (1) share held on the record date. Ten (10) subscription rights will entitle to subscription of three (3) newly issued shares. - The subscription price will be
SEK 4.40 per share. - The Rights Issue consists of a maximum of 6,254,559 new shares. Upon full subscription in the Rights Issue, the Company will receive approximately
SEK 27.5 million , before issue costs, which are estimated to amount to approximatelySEK 5.8 million . The Company's share capital may increase bySEK 32,032,581.08 , fromSEK 106,775,270.26 toSEK 138,807,851.34 . - The subscription period for the Rights Issue is expected to take place from
August 19, 2024 toSeptember 2, 2024 . - Upon full subscription of the Rights Issue, existing shareholders who choose not to participate in the Rights Issue, will experience a dilution of approximately 23.1 percent.
- Trading in paid interim shares (BTA) is expected to take place during the subscription period until conversion of BTA into shares following the registration at the Swedish Companies Registration Office. Such registration is expected to take place around week 38, 2024.
Underwriting commitments
The Rights Issue is partially covered by underwriting commitments to 80 percent. The underwriting commitments have been provided by a consortium of external investors led by
Timetable, all dates referring to 2024
Last day of trading of shares in PMDS including the right to receive subscription rights. | |
First day of trading of shares in PMDS excluding the right to receive subscription rights. | |
The record date for receiving subscription rights. Shareholders who are registered in the share register kept by | |
The information memorandum with regards to the Rights Issue is expected to be published. | |
Trading with subscription rights on Nasdaq First North Growth Market. | |
The Subscription Period for the Rights Issue. | |
Around | The announcement of the outcome of the Righs Issue is expected to be published. |
Bridge financing
To support
Advisors
Stockholm Corporate Finance is acting as financial adviser to the Company in the Rights Issue. Eversheds Sutherland Advokatbyrå AB is acting as legal adviser to the Company. Nordic Issuing act as issuing agent in the Rights Issue.
IMPORTANT INFORMATION
This press release is not an offer to subscribe for shares in PMDS and investors should not subscribe or acquire any securities. Invitation to concerned persons to subscribe for shares in PMDS will only be made through the Information Memorandum.
This press release shall not, directly or indirectly, be released, published or distributed in or to
There is no intention to register any portion of the offer in
The Company has not authorized any offer to the public with regards to the shares or rights that are referred to in this communication in any member state of the European Economic Area (''EEA'') besides
In the
The press release contains certain forward-looking statements that reflect the Company’s current views or expectations with respect to future events and financial and operational performance. The words “intend”, “estimate”, “expect”, “may”, “plan”, “anticipate” or similar expressions regarding indications or forecasts of future developments or trends, which are not statements based on historical facts, constitute forward-looking information. Forward-looking statements inherently involve both known and unknown risks and uncertainties as they depend on future events and circumstances. Forward-looking statements do not guarantee future results or development and the actual outcome could differ materially from the forward-looking statements.
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