Scandinavian Biogas announces fully secured share issues with a value of 136 MSEK; intends to carry out a rights issue of 10 MSEK

Scandinavian Biogas Fuels International AB (publ) ("Scandinavian Biogas" or "Company") is today announcing that the Company has secured binding subscription commitments totaling 136 MSEK (hereinafter the “Transaction”), 100 MSEK of which is in the form of new equity investments and 36 MSEK of which is through set-off of outstanding loans. The Company also intends to carry out a rights issue of 10 MSEK during summer 2019 (the “Rights Issue”)

The Transaction and the Rights Issue are intended to be carried out in party with support from the Board mandate received at the 2018 Annual General Meeting (“AGM”), and in party with support from the Board mandate proposed to the forthcoming 2019 AGM. The Company has already secured subscription commitments for the Transaction from all concerned parties. The Transaction and Rights Issue are expected to close during summer 2019.

The share price in the Transaction and Rights Issue will be 2,40 SEK/share. The Company intends to issue new shares with a total value of approximately 146 MSEK, corresponding to approximately 61 million new shares.

As part of the Transaction, AB Apriori has provided subscription commitments for 34,5 million shares, meaning that that AB Apriori will become a new significant shareholder and the third largest owner of the Company with more than 20% of the share capital and votes once the Transaction and Rights Issue closes. The reasons for deviating from the shareholders’ preferential rights as part of the Transaction are to increase equity funding in a time- and cost-efficient manner, as well as to diversify the Company’s shareholder base through the addition of a financial investor who can actively contribute to the Company’s long-term development.

The proceeds from the new share issues are intended to be used to finance an improvement and expansion of Scandinavian Biogas’ plant in Södertörn and to ensure certain working capital requirements.

Additional and more detailed information relating to the Transaction and Rights Issue will be made available through additional press releases to follow.

SV Ventures has acted as the Company’s financial advisor and Cirio Advokatbyrå as its legal advisor in connection with the Transaction.

For further information, please contact:

Matti Vikkula
CEO Scandinavian Biogas
+46 (0) 70-597 99 38
matti.vikkula@scandinavianbiogas.com

The Company in brief:
Scandinavian Biogas is today one of the largest private producers of biogas as a vehicle fuel. The Company also operates a manufacturing plant for pre-treatment of food waste and industrial organic waste, as well as a plant for production of raw biogas in South Korea and a plant for production of liquid biogas in Norway.

The information in this press release is such that Scandinavian Biogas Fuels International AB (publ) must disclose in accordance with the EU Market Abuse Regulation (EU MAR) No. 596/2014. The information was submitted for publication, through the agency of the contact persons set out above, on June 5 2019, at 19:15 CET.