VIGMED’S BOARD OF DIRECTORS HAS RESOLVED ON A DIRECTED NEW ISSUE OF SHARES PURSUANT TO AN AUTHORISATION GRANTED BY THE ANNUAL GENERAL MEETING
The Board of Directors of Vigmed Holding AB (publ) (“Vigmed” or the “Company”) has, pursuant to the authorisation granted by the annual general meeting on 12 May 2016, resolved on a directed new issue of 7,305,555 shares, which will raise proceeds to the Company of approximately SEK 8 million before deduction of issue costs.
The board of directors has, pursuant to the authorisation granted by the annual general meeting on 12 May 2016, resolved on a directed new issue of 7,305,555 shares to its main shareholder, Greiner Bio-One GmbH (“GBO”).
The shares are issued at a subscription price of SEK 1.10 per share. In total, 7,305,555 new shares have been issued and subscribed for. Accordingly, the issue will raise proceeds to the Company of approximately SEK 8 million before issue costs.
Vigmed intends to use the proceeds from the issue to finance the Company’s ongoing business operations and development. The reason for deviation from the pre-emption rights of the shareholders is the Company’s previously communicated need of a capital contribution for the continued conduct of the Company’s business, which has become critical and has led to the acceptance by the board of directors of the subscription offer received from GBO. The subscription price has been proposed by GBO, and has been accepted by the board of directors, on the basis of the market price of the shares and a market standard discount.
“The issue satisfies Vigmed’s immediate need of a capital contribution and ensures the Company’s short term solvency, and provides us with the room for manoeuvre to continue the conduct of the Company’s business.” says Sten Dahlborg, chairman of the board of directors of Vigmed.
The board envisages that GBO as the new majority owner will propose changes to the composition of Vigmed's board in the near future and that the majority owner or the new board will promote a substantial capital injection to safeguard the company's longer term needs. The board strongly encourages the new majority shareholder and the forthcoming board to promote that the other shareholders of Vigmed are offered the opportunity to invest in the company by participation in such a capital injection in accordance with the regulatory framework applicable to such capital injections.
The directed new issue will result in an increase of the number of shares in the Company by 7,305,555 from 65,749,998 to 73,055,553 and that the share capital will increase by SEK 147,446.677922 from SEK 1,327,020.161850 to SEK 1,474,466,839772 resulting in a dilution of approximately 10 per cent for the Company’s existing shareholders after the share issue.
Hamilton has been the legal adviser in connection with the directed share issue.
This information is information that Vigmed Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8.00 am CET on May 8, 2017.
For further information contact:
Chairman of the Board Sten Dahlborg, +46 708-369 419
CEO Henrik Olsen, +46 763-497 364
This is a translation of the Swedish version of the press release. When in doubt, the Swedish wording prevails.
Vigmed is a Swedish medical technology company whose mission is to eliminate needlestick injuries and the associated risk of cross infections with blood-borne infectious diseases by offering the market unique needle-protected products. Vigmed is headquartered in Helsingborg, Sweden. Vigmed’s share is traded on NASDAQ OMX First North in Stockholm (ticker VIG). Remium Nordic AB is the Company’s Certified Advisor.Additional information about the company can be found on Vigmed’s website: www.vigmed.com/investor