ConNova issues SEK 109 million in new shares

ConNova issues SEK 109 million in new shares Yesterday, the board of ConNova Group AB (publ.) ("ConNova") decided to carry out a targeted new share issue of a maximum of 1,200,000 shares, pending the approval of the EGM and deviating from the preferential rights of shareholders. The purpose of the issue is to consolidate the company's financial position, enabling ConNova's continued expansion within new markets. The board also intends to increase institutional ownership in the company. The entire issue amount has been placed with financial institutions, over half of which are foreign. The issue price has been fixed at SEK 91 per share, and ConNova will raise SEK 109 million before new issue costs. The issue price represents a discount of 4% discount on the closing price on 15 December 1999. "We are very pleased that several highly reputed Swedish and international institutional investors have chosen to invest in ConNova. By strengthening our financial position, we can build on the solid foundation we have laid over the past few years. Until now, the primary target group for our Customer Care and Billing systems has been pay-TV operators, and the proceeds from the issue allows us to enter new geographical segments of these markets. Also, ConNova wants to broaden its focus on other client groups, for example, Internet-related operators, broadband and telecoms services and utility. ConNova has already taken the first steps in this direction through a partnership agreement with Bredbandsbolaget," says Björn Persson, Managing Director of ConNova. Following the new share issue, the total outstanding equity of ConNova is a maximum of 4,414,400 shares. The dilution effect on the issued share capital, before the exercising of the company's subscription option programme, is around 27% of the number of shares following the new share issue. An EGM to approve the board's decision about the new share issue is expected to the held around 3 January 2000. Trading in the new shares is expected to commence in mid-January 2000. Enskilda Securities AB is acting as advisor to ConNova in conjunction with the transaction. ConNova ConNova specialises in the development and delivery of business support systems for multimedia-operators handling pay-TV, Internet, broadband and telecom services. The company has 15 years of experience within this area. ConNova´s services extend from consulting services to development of state of the art software systems. ConNova also run a customer service operation, through ConNova TVX, for pay-TV operators in Europe. ConNova´s customers today operate within the cable-TV, DTT (Digital Terrestrial Television), multimedia and telecommunication sectors. At the international exhibition for billing systems in London in May 1999 BizManager, ConNova´s software system for customer care and invoicing, received two honourable mentions for "Overall Best Contribution to Billing" and "Most Innovative Billing Product". ConNova Group AB (publ) are quoted on the Stockholm stock exchange since 1997. For further information please contact: Björn Persson, MD ConNova Group Telephone +46 705 38 08 80, e-mail bp@connova.se Roger Persson, Finance Director Telephone +46 141 23 76 53, e-mail rope@connova.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/16/19991216BIT00650/bit0001.doc http://www.bit.se/bitonline/1999/12/16/19991216BIT00650/bit0002.pdf