Veg of Lund intends to carry out a directed issue of units
Note for release, publication or distribution in whole or in part, directly or indirectly, in the United States, Australia, Canada, New Zealand, Hong Kong, Japan, Singapore, South Africa, South Korea or any other jurisdiction where such release, publication or distribution would be unlawful or would require registration or any other measures. Please refer to important information at the end of the press release.
This press release is an English version of the previously published Swedish version, which has interpretative preference.
Veg of Lund AB (publ) (“Veg of Lund” or the “Company”) intends to carry out a directed issue of units of approximately MSEK 30, each unit consisting of three (3) shares and one (1) warrant of series TO1, to qualified investors through an accelerated bookbuilding-procedure (the “Directed Issue”). The Company has the intention, if the directed issue is carried out, to issue and allot one (1) warrant of series TO1 to current shareholders for indicative every twenty-three (23) shares already held in the Company.
The Company has engaged Mangold Fondkommission AB to investigate the conditions for implementing the Directed Issue. If the Directed Issue is carried out it will be carried out with the support of the authorization from the annual general meeting held on 12 May 2021.
The rationale for deviating from the shareholders’ pre-emption rights is to secure financing in a time- and cost-effective manner, and to diversify the shareholder base. According to the assessment of the board of directors, this speaks together, and with sufficient strength, that it is in the Company's and the shareholders’ interest to make an issue deviating from the shareholders pre-emption rights.
The proceeds from the Directed Issue will be used to strengthen the Company’s working capital prior to the continued launch of the plant-based drink DUG®, which begun in May 2021. Since its launch, Veg of Lund has entered into agreements with, inter alia, ICA, Axfood and Mathem, which can sell the beverage in up to 1,750 stores in Sweden. The Company has also entered into agreements with Amazon UK, Ole’ and Sam’s Club in China. The Company intends to use the payment to increase the production of DUG, consumer marketing in the Company’s strategically markets and to develop the organization.
The subscription price and the number of units in the Directed issue will be determined by the accelerated book-building procedure. The book building-procedure will commence directly after the publishing of this press release. The board of directors’ assessment is that the subscription price in the Directed Issue will be in accordance with market conditions, since it will be determined through an accelerated book-building procedure. The board of directors intends to resolve upon the Directed Issue as well as allotment of units and publish a press release regarding this before the opening of Nasdaq Firsth North Growth Market on 26 August 2021.
Payment for the newly issued units in the Directed Issue will be made in cash.
The Directed Issue is subject to a resolution by the board of directors and the board of directors can, at its discretion, choose to cancel the Directed Issue or to carry out the Directed Issue on other terms than what is described above.
If the Directed Issue is carried out, the board of directors of Veg of Lund intends to, simultaneously, issue warrants of series TO1 (same series as in the Directed Issue) to finally be allotted to current shareholders in the Company. The warrants of series TO1 are intended to be admitted to trading on Nasdaq First North Growth Market.
Advisor
Mangold Fondkommission AB is the sole bookrunner and financial advisor and Fredersen Advokatbyrå is the legal advisor in connection with the Directed Issue.
For more information, please contact:
Veg of Lund AB
Cecilia Lindwall (CEO)
Telephone: +46 765 014 809
E-mail: cecilia.lindwall@vegoflund.se
This information is such that Veg of Lund 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 person set out above, on 25 August 2021, at 5:31 p.m. CEST.
About Veg of Lund
Veg of Lund develops unique plant-based foods meeting consumers’ demands for taste and sustainability. The company has roots in research at Lund University and owns patented methods for developing new food categories in the fast-growing market for plant-based foods. Veg of Lund’s climate-smart and tasty products are sold in Europe and Asia under the DUG® and MyFoodie® brands. The company’s shares were listed on the Nasdaq First North Growth Market under ticker VOLAB. Read more at ir.vegoflund.se. Eminova Fondkommission AB is the company’s Certified Adviser and can be contacted via telephone: +46 8 684 211 10 or e-mail: adviser@eminova.se.
Important information
The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in Veg of Lund in any jurisdiction, neither from Veg of Lund nor from someone else. This announcement does not identify or suggest, or purport to identify or suggest, the risks (direct or indirect) that may be associated with an investment in the Company. 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. Mangold Fondkommission AB is acting for Veg of Lund in connection with the Directed Issue and no one else and will not be responsible to anyone other than Veg of Lund for providing the protections afforded to its clients nor for giving advice in relation to the Directed Share Issue or any other matter referred to herein. 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. The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, within or into the United States, Australia, Canada, New Zealand, Hong Kong, Japan, Singapore, South Africa, South Korea or in any other jurisdiction where such announcement, publication or distribution of the information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations. This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. Veg of Lund 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 Directed Issue. 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.
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 required by law or Nasdaq First North Growth Market regulations.
This disclosure contains information that Veg of Lund is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 25-08-2021 17:31 CET.
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