2020.04.06 Press release, Regulatory

ASTG conducts a directed rights issue that provides the company with approx. SEK 3.5 million and enters into a bridge loan agreement of approx. SEK 6.5 million with Formue Nord

The Board of Directors of ASTG AB (publ) (“ASTG” or “The Company”) today decided, with the support of authorization from the Annual General Meeting on May 14, 2019, to do a directed cash rights issue of 1,750,000 B shares to Formue Nord Markedsneutral A / S (“Formue Nord”). The subscription price has been set at SEK 2.0 per share. In connection with the new rights issue, ASTG has entered into a bridge loan agreement of SEK 6.5 million with Formue Nord.

ASTG’s Board of Directors has decided on a directed rights issue of 1,750,000 Class B shares to Formue Nord. The subscription price has been set at SEK 2.0 per share, which corresponds to approximately 9.1% discount compared to the volume weighted average price during the last 10 trading days prior to the announcement. Through the new issue, the Company will receive approximately SEK 3.5 million before the cost of emission. After the new issue, the total number of shares in the Company will amount to 30,861,664 and the share capital will amount to SEK 2,113,096.62. The new share issue has a dilution effect of approximately 5.7% based on the total number of shares in the Company after the new share issue. The reason for deviating from the shareholders’ preferential rights is to enable the acquisition of working capital for continued market expansion in a time and cost-effective manner.

The issue proceeds are primarily intended to be used to secure the working capital of the Company’s new technology acquisition from ReQuTech, which was published on April 3, 2020.

“Formue Nord has been following ASTG for a while and we are pleased to see the positive development the Company has undergone during the past 12 months. We believe ASTG is on the right track and feel confident with our investment in the Company,” says Rasmus Viggers, Partner at Formue Nord.

Due to the prevailing situation with Covid-19, the Company has, in order to ensure continued development and operation, in connection with the new targeted rights issue, taken out a bridge loan of approximately SEK 6.5 million from Formue Nord. The terms of the loan are on market conditions and the loan runs for 6 months. The company sees this as a proactive risk management measure and expects to repay the loan through its operating cash flow generated by the existing order backlog.

Redeye AB has acted as financial advisor in connection with the issue.