Successfully completed new share issue in Nexam Chemical

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Nexam Chemical Holding AB (publ) (“Nexam Chemical”) today announces that the company has completed a directed new share issue of 3,000,000 new shares, providing the company with SEK 67.5 million before reduction of transaction costs.

This press release may not be announced publisher or distributed, directly or indirectly, in the United States, Canada, Hong Kong, Japan, New Zealand, South Africa or Australia.

The directed new share issue, which was announced on March 13, 2014, has allowed Nexam Chemical to issue 3,000,000 new shares to international institutional investors and qualified investors in Sweden at a price of SEK 22.50 per share through an accelerated book-building process.

The proceeds from the new share issue are intended to be used to finance and enabling the continuance of a high rate of expansion and the development of the company, its markets and products.

“The completed new share issue strengthens our financial position and enables an accelerated high rate of expansion and increased market penetration of Nexam Chemical’s unique product offering. It is pleasing to see that interest in participating in the offering has been great among both Swedish and international institutional investors” says Per Palmqvist Morin, CEO of Nexam Chemical.

To implement the new share issue, the Board of Directors has resolved, pursuant to the authorization given by the general meeting on March 20, 2013, on a directed new share issue of 3,000,000 new shares. The purpose of the resolution to issue new shares with deviation from the shareholders' preferential rights, is primarily to take advantage of an opportunity to raise capital on advantageous terms from new, from a financial perspective, strategically important owners, thereby promoting Nexam Chemical’s ability to create further value for all shareholders.

The new issue results in an equity dilution of 5.8 per cent based on the number of shares after the new share issue. The subscription price has been established through a customary book-building process. In relation to the 10 day volume weighted average share price on the last trading day before the resolution on issuance of new shares, the subscription price corresponds to a discount of approximately 14.1 per cent. In relation to the market close price on March 13, 2014, the subscription price corresponds to a discount of approximately 8.9 per cent. Current major shareholders have undertaken to temporarily lend required number of shares to facilitate expeditious delivery to the share subscribers.

Financial and legal advisors

ABG Sundal Collier AB has served as financial advisor and sole bookrunner and Setterwalls Advokatbyrå AB has served as legal advisor in connection with the new share issue.

Important information

The publication or distribution of this press release may in certain jurisdictions be subject to restriction by law, and persons in the jurisdictions where this press release has been published or distributed should inform themselves of and follow such legal restrictions. This press release does not contain or constitute an invitation or offer to acquire, subscribe to or otherwise trade with shares, subscription rights or other securities in Nexam Chemical.

This press release may not be made public, published or distributed, either directly or indirectly in the United States, Canada, Hong Kong, Japan, New Zealand, South Africa, Australia or any other country where such procedures are subject in full or in part to legal restrictions. Nor may the information in this press release be communicated, reproduced or presented in any way that is in conflict with such restrictions. Failure to follow this instruction may involve a breach of the United States Securities Act from 1933 ("Securities Act") or applicable laws in other jurisdictions.

This press release may contain forward-looking statements. When used in this press release, words such as “evaluate”, “expect” and “intend” are intended to identify forward-looking statements. They may involve risks and uncertainties, including product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of the management as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements are based on estimates and assumptions made by the management and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. Nexam Chemical disclaims any intention or obligation to update these forward-looking statements.

For more information, please contact:
Lennart Holm, Chairman of the Board: +46 (0)706 30 8562
Per Palmqvist Morin, CEO, +46 (0)706 55 55 82

Nexam Chemical is a Swedish company with a world-leading technology within its area for heat-activated crosslinking of plastics and polymers. The company develops, manufactures and markets unique heat-activated crosslinkers to the plastics market. A company description and more information about the business will be found on www.nexamchemical.com. The company’s Certified Adviser is Remium Nordic AB.

Note: This press release has been translated from Swedish. The Swedish text shall govern for all purposes and prevail in case of any discrepancy with the English version.

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