Cinnober’s Board of Directors has resolved on a directed share issue of up to SEK 180 million
NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SOUTH AFRICA OR AUSTRALIA OR IN ANY OTHER JURISDICTION IN WHICH DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL OR REQUIRE REGISTRATION OR OTHER MEASURES IN ADDITION TO THOSE REQUIRED UNDER SWEDISH LAW.
The Board of Directors of Cinnober Financial Technology Aktiebolag (publ) (“Cinnober” or the “Company”) has resolved, subject to the approval of the Extraordinary General Meeting, on a directed share issue of 692,307 shares, which is expected to raise proceeds to the Company of up to SEK 180 million before issue costs.
The intention to carry out a directed share issue was announced on February 22, 2017 after market close. The board of directors has now resolved, subject to the approval of the Extraordinary General Meeting, on such issue to a number of qualified Swedish investors outside the Company’s existing shareholder base, including Nordea Fonder, Handelsbanken Fonder and Creades, as well as the existing shareholder Swedbank Robur Ny Teknik, on the basis of an accelerated bookbuilding process conducted by the Company’s financial adviser. The Company intends to publish the notice of the Extraordinary General Meeting shortly.
In total, 692 307 new shares will be issued at a subscription price of SEK 260. Accordingly, the directed issue is expected to raise proceeds to the Company of up to SEK 180 million before issue costs.
On February 22, 2017, Cinnober announced that it intends to expand, and within a 24-month period, distribute its wholly-owned subsidiary operating with real-time clearing for banks (the “Subsidiary”). The capital raising from the directed issue will be used to finance the planned expansion of the Subsidiary. The reason for deviating from existing shareholders’ preferential rights is to broaden the Company’s institutional shareholder base and to capitalize on the opportunity to swiftly secure funding on favorable terms for the development of the Subsidiary.
“The issue safeguards our prospects of commercializing opportunities we perceive in the market for real-time technology. At the same time, we are pleased to confirm that the issue broadens our shareholder base with several new, high-quality shareholders” says Veronica Augustsson, CEO of Cinnober.
The directed issue, if approved, will result in an increase of the number of shares in Cinnober by 692,307 from 6,784,728 to 7,477,035 and that the share capital will increase by SEK 692,307 from SEK 6,784,728 to SEK 7,477,035 resulting in a dilution of approximately 9,26 percent for Cinnober’s existing shareholders after the directed issue.
Some of the Company’s largest shareholders, who together hold shares representing approximately 50 percent of the votes in the Company, have committed to vote in favor of a decision on the directed issue at the Extraordinary General Meeting.
SEB Corporate Finance, Skandinaviska Enskilda Banken AB has acted as financial adviser and Hamilton Advokatbyrå KB has been the legal adviser in connection with the issue.
For further information, please contact:
Veronica Augustsson
CEO
Cinnober Financial Technology Aktiebolag (publ)
Tel. +46 (0)8 503 047 00
veronica.augustsson@cinnober.com
About Cinnober Financial Technology Aktiebolag (publ)
Cinnober provides solutions and services to leading trading and clearing venues, including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are largely based on the TRADExpress™ Platform, incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility. The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and surveillance. Cinnober’s customers include the Australian Securities Exchange, BM&FBOVESPA, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand. In addition to the leading position in exchange technology, the company also has a long-term ambition to broaden its offering to a larger target group, by also adapting the technology for banks and brokerages. Cinnober’s shares are traded on the Nasdaq First North exchange and the company’s Certified Advisor is Avanza. For additional information, please visit www.cinnober.com
This information is information that Cinnober Financial Technology AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 01:15 CET on 23 February 2017.
IMPORTANT INFORMATION
The information in this press release does not constitute an offer to acquire, subscribe or otherwise trade in shares, convertible debentures or other securities in Cinnober. The information in this press release may not be released, published or distributed, directly or indirectly, in or into the United States, Canada, Hong Kong, Japan, New Zeeland, South Africa or Australia or any other jurisdiction in which such action is subject to legal restrictions or would require prospectuses, registration or other measures than those required by Swedish law. Nor may the information in this press release be forwarded, reproduced or disclosed in a manner that contravenes such restrictions or would entail such requirements. Actions in violation of these restrictions may constitute a violation of applicable securities laws.