CELLINK has completed directed share issues of SEK 946 million to finance the acquisition of SCIENION AG and create further room for a continued M&A agenda
The Board of Directors of CELLINK AB (publ) (“CELLINK” or the “Company”) has resolved on directed share issues which in total amounts to 5,912,477 new shares of series B (corresponding to approximately 13.8 percent of the total number of outstanding shares in the Company) shares at a subscription price of SEK 160 per share. 4,287,477 shares are issued based on the authorization granted by the extraordinary general meeting on July 16, 2020 and 1,625,000 shares are issued subject to the subsequent approval of an extraordinary general meeting on September 11, 2020 (the “Share Issues”), which means that the Company raises SEK 945,996,320 before transaction costs. The subscription price in the Share Issues has been determined through an accelerated bookbuilding procedure, performed by Carnegie Investment Bank AB (publ) and J.P. Morgan Securities plc, and corresponds to a discount of approximately 1.7 percent compared to the closing price as of August 19, 2020 of the CELLINK share of series B on Nasdaq Stockholm. In addition to a strong support from existing shareholders, several new institutional investors participated in the Share Issues.
Share Issues
The purpose of the Share Issues is to finance the acquisition of SCIENION AG that was announced August 19, 2020 at 17:30 CEST, and to create further room for a continued M&A agenda. The acquisition of SCIENION AG will, as previously announced, be financed partly with an issue in kind of 2,814,032 consideration shares of series B (the “Consideration Shares”) and partly in cash with proceeds from the Share Issues.
The reasons for the deviation from the shareholders' pre-emptive rights are to partly finance the acquisition of SCIENION AG, to raise capital in a timely and cost-efficient manner and to diversify the shareholder base. By establishing the subscription price in the Share Issues through an accelerated bookbuilding procedure, it is the Board of Directors' assessment that the subscription price accurately reflects current market conditions and demand.
The Share Issues consists of newly issued series B shares corresponding to 4,287,477, or 10 percent of the total number of outstanding shares in line with the authorization granted by the extraordinary general meeting that was held on July 16, 2020 and an additional 1,625,000 series B shares corresponding to approximately 3.8 percent of the total number of outstanding shares, which will be subject to the subsequent approval by the extraordinary general meeting scheduled to be held September 11, 2020.
The Share Issues (excluding the Consideration Shares) will entail a dilution of 12.1 percent of the total number of outstanding shares and 9.5 percent of the votes in CELLINK, through an increase in the number of outstanding shares of series B by 5,912,477, from 41,374,776 to 47,287,253, and a share capital increase by SEK 147,811.93, from SEK 1,071,869.40 to SEK 1,219,681.33.
Together with the Consideration Shares, the Share Issues will entail a dilution of 16.9 percent of the total number of outstanding shares and 13.4 percent of the votes in CELLINK, through an increase in the number of outstanding shares of series B by 8,726,509, from 41,374,776 to 50,101,285, and a share capital increase by SEK 218,162.73, from SEK 1,071,869.40 to SEK 1,290,032.13.
Voting commitments, settlement and lock-up undertakings
As communicated August 19, 2020, Erik Gatenholm, Hector Martinez and Gusten Danielsson, which together hold approximately 55 percent of votes in the Company, have committed to vote in favor of the Board of Directors' decision to issue new shares which requires the extraordinary general meeting’s approval. In the event that the extraordinary general meeting does not approve the additional newly issued series B shares, the Company will return the proceeds from the additional series B shares to the relevant investors.
Due to technicalities, the part of the Share Issues based on the authorization granted by the extraordinary general meeting on July 16, 2020 will be subscribed for by Carnegie Investment Bank AB (publ) to the quota value to settle the delivery of shares to investors who have subscribed for shares in the part of the Share Issues being based on the authorization granted by the extraordinary general meeting.
Furthermore, in order to facilitate delivery to all investors in the Share Issues on August 24, 2020, the Company will issue interim shares (Sw. betalda tecknade aktier, BTA) to the investors subscribing for shares which are subject to the subsequent approval of the extraordinary general meeting on September 11, 2020.
Members of the Board of Directors and the management team, of which several are large shareholders in CELLINK, have entered into lock-up agreements to, subject to certain exceptions, not sell shares in CELLINK for a period of 90 calendar days after the settlement date. Furthermore, the Company has agreed to a commitment, with customary exceptions, not to carry out any additional share issuances for a period of 180 calendar days after the settlement date.
Extraordinary general meeting
Notice to the extraordinary general meeting on September 11, 2020 will be announced separately on August 24, 2020 and includes the board of directors’ complete proposal regarding the relevant part of the Share Issues requiring the extraordinary general meeting’s subsequent approval.
Key parties
In conjunction with the Share Issues, the Company has engaged Carnegie Investment Bank AB (publ) and J.P. Morgan Securities plc as Joint Global Coordinators and Joint Bookrunners. Advokatfirman Vinge acts as Swedish legal adviser to the Company and Baker McKenzie acts as Swedish and U.S. legal adviser to the Joint Global Coordinators and Joint Bookrunners.
For further information, please contact:
Erik Gatenholm, CEO Gusten Danielsson, CFO
Phone (Sweden): +46 73 267 00 00 Phone (Sweden): +46 70 991 86 04
Phone (US): +1 (650) 515 5566 Phone (US): +1 (857) 332 2138
Email: eg@cellink.com Email: gd@cellink.com
This information constitute inside information that CELLINK 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, on August 20, 2020 at 00:55 CEST.
About CELLINK
CELLINK is a global life-science company providing technologies, products, and services to create, understand, and master cell and molecular biology, with a focus on three main application areas: bioprinting, analysis, and liquid handling & bioprocessing. The company develops and markets innovative cell culture technologies, enabling researchers in the life sciences to print human organs and tissues for pharmaceutical and cosmetic applications. Founded in 2016, CELLINK’s products have been adopted by researchers and scientists in more than 1,000 laboratories with more than 100 publication citations, the majority of the largest pharmaceutical companies and has been delivered to more than 55 countries around the world. The company’s vision is to create the future of medicine.
Visit www.cellink.com to learn more. CELLINK is listed on Nasdaq Stockholm Main Market under CLNK B.
Important information
This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in CELLINK in any jurisdiction, not from CELLINK or from any other person. Publication, distribution or release of this press release may, in certain jurisdictions, be subject to restrictions by law and the persons in such jurisdictions where this press release has been published or distributed should inform themselves of and follow such legal restrictions. This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States.
This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. CELLINK has not authorized any offer to the public of shares or rights in any member state of the EEA and no prospectus has been or will be prepared in connection with the Share Issues. In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation.
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The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness.
Forward-looking statements
This press release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this press release or any obligation to update or revise the statements in this press release to reflect subsequent events. Undue reliance should not be placed on the forward-looking statements in this press release. The information, opinions and forward-looking statements contained in this press release speak only as at its date and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq Stockholm rule book for issuers.
Information to distributors
Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended (“MiFID II”); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the “MiFID II Product Governance Requirements”), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any “manufacturer” (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the shares in CELLINK have been subject to a product approval process, which has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the “Target Market Assessment”).
Notwithstanding the Target Market Assessment, Distributors should note that: the price of the shares in CELLINK may decline and investors could lose all or part of their investment; the shares in CELLINK offer no guaranteed income and no capital protection; and an investment in the shares in CELLINK is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Share Issues. Furthermore, it is noted that, notwithstanding the Target Market Assessment, the Joint Bookrunners will only procure investors who meet the criteria of professional clients and eligible counterparties.
For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares in CELLINK.
Each distributor is responsible for undertaking its own target market assessment in respect of the shares in CELLINK and determining appropriate distribution channels.