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Swedencare AB (publ) ("Swedencare" or the "Company") today announces its intention to carry out a directed new share issue of up to 1,500,000 new shares to Swedish and international institutional investors (the "Directed New Share Issue").The Directed New Share Issue is carried out as part of the financing of the acquisition of the business conducted by the American animal health company Stratford Pharmaceuticals, LLC (the "Acquisition"), as announced by the Company earlier today.
The Directed New Share Issue is intended to be carried out with deviation from the shareholders' preferential rights and with the support of the authorization granted by the annual general meeting held on April 21, 2020. Swedencare has engaged Pareto Securities AB ("Pareto Securities") to investigate the conditions for a new issue of shares through a so-called accelerated bookbuilding procedure.
The subscription price for the shares in the Directed New Share Issue is to be determined through an accelerated bookbuilding procedure, which will begin no earlier than 17:33 today, June 24, 2020, and end before the commencement of trading on Nasdaq First North Growth Market on June 25, 2020. The bookbuilding procedure may, at the discretion of the Company or Pareto Securities, close earlier or later and may be cancelled at any time.
The rationale for carrying out the Directed New Share Issue and for the deviation from the shareholders' preferential rights is to secure financing in a time- and cost-effective manner for the Acquisition. For additional information on the Acquisition, see the separate press release with headline "Swedencare AB (publ) acquires the operations of leading American company in animal health care products" that was published today. The board of directors' assessment is that the subscription price in the Directed New Share Issue will be in accordance with market conditions, since it will be determined through an accelerated bookbuilding procedure.
In connection with the Directed New Share Issue, the Company has undertaken, with customary exceptions, not to issue additional shares for a period of 360 calendar days after the announcement of the outcome of the Directed New Share Issue. Board members holding shares and the CEO have undertaken not to sell any shares in Swedencare for a period of 90 calendar days after the announcement of the outcome of the Directed New Share Issue, with customary exceptions.
The Directed New Share Issue is subject to a resolution by the board of directors of Swedencare, pursuant to the issue authorization given by the annual general meeting on April 21, 2020 to issue new shares, following the close of the bookbuilding procedure.
Pareto Securities AB is acting as Sole Manager and Bookrunner and Advokatfirman Lindahl KB is legal adviser in connection with the Directed New Share Issue.
This information was distributed by Cision http://www.cisionwire.se/