RIGHTS ISSUE

Josab announces the main conditions of a share issue with preferential rights for subscription commitments, an advance subscription and guarantee commitments, equivalent to 100 percent of the total amount of the rights issue received.

The Board of Josab International AB (publ) (ticker: Josa) proposes that the Extraordinary General Meeting 17 March 2017 decide on a share issue with preferential rights for existing shareholders of a maximum of 22.22 million SEK before issue costs. The Board of Josab International suggests that eleven (11) existing shares entitles to subscribe for two (2) new shares at a subscription price of 2.15 (two and 15/100) SEK during the period of 29 March to 20 April 2017. Josab has from a number of investors, major shareholders, including management received subscription commitments, an advance subscription and guarantee commitments, equivalent to 100 (one hundred) percent of the total amount in the rights issue of up to 22.22 million SEK.

Short about the issue

The Board of Josab proposes that the Extraordinary General Meeting 17 March 2017 decide on a share issue with preferential rights for existing shareholders of a maximum of 22 221 002.50 SEK before issue expenses to a maximum of 10,335,350 new shares.
Shareholders who, on the record date for the rights issue, are registered as shareholders in Josab, are proposed for each of record held share receive one (1) subscription right. According to Josabs Board's proposal it requires eleven (11) subscription rights to subscribe for two (2) new shares. Thus, the proposed eleven (11) existing shares entitle the holder to subscribe for two (2) new shares.
The Board of Josab International proposes a subscription price of 2.15 (two and 15/100) SEK.
Josab International has from a number of investors, major shareholders, including management, received subscription commitments, an advance subscription and guarantee commitments, equivalent to 100 (one hundred) percent of the total amount in the rights issue of up to 22.22 million SEK.
Notice of Extraordinary General Meeting will be published March 3, 2017 and the full terms of the issue and other documents made available March 3, 2017.
 

Short about Josab International

Josab manufactures and sells products for ecological sanitation - that is, without chemical additives - based on a proprietary, patented technology. The raw material with specific properties is central to Josabs products. Josab owns the mine, where the raw material for its own filter material AqualiteTM, broken. A well-invested, wholly owned mine, and maintenance of the state secures long-term access to high quality raw material. The filter material Aqualite™, as Josab produce from the raw material, has Josabs purification process characteristics, which is filtering effectively purify the water. The products are competitive, have high capacity and can be adapted to unique customer needs and complement other purification methods. Josab produces its own water purification units, in a well-invested facility in Hungary, and in a carefully selected mercenary producer in India.

Josab has its own sales organization for direct sales and also operates through four business partners. Josabs products have multiple applications and are marketed to several customer categories. Josab priority to customers within the regular water supply, and specifically in the treatment of drinking water. Josabs markets are in Asia, Africa and Europe with a short-term focus on sub-markets in India, South China, Central and Eastern Europe and east Africa.

The global market for water treatment is characterized by a scarce and dwindling supply of fresh water and one of several reasons increasing demand for purified fresh water. The global water treatment market is expected in the coming years to increase at an annual rate, exceeding the estimated annual global GDP growth.

Josabs water treatment technology has been accepted and used by several customers over the years. Josab has historically not built stable customer relations and recent years has had limited sales. Josab find themselves with the new management and the board in the construction phase in marketing and sales in order to expand sales. Josab has successfully built a bridgehead on the Indian market. Josab received in 2016 a tenderlicense C in the state of Kerala. In late 2016 Josab signed a contract where Josabs products shall pure water in 150-250 water kiosks - a part of the regular water supply - in the city of Hyderabad in the state of Telangana, India.

Short motives for the rights issue

The forthcoming rights issue gives Josab primarily to expand in key markets and also adds working capital. Josab concerns with the rights issue to strengthen its presence in India. With additional sales and project management capabilities will Josab India be a strong unit for design of customized water treatment solutions. With a stronger organization in India, and closer cooperation between Josab India and China Josab Josab can also participate in large projects if they are commercially competitive and financially manageable.
Josab must also restart its market of China, starting in southern China by intensifying technical and commercial partnerships with local companies. In 2016 concluded including a cooperation agreement with Sichuan Estone Environmental Protection Technology Company on the manufacture, marketing and sales.
The forthcoming rights issue also makes it possible for Josab to establish sales in Europe, where the needs are for Josabs technology, including in regular water supply. The start is in Eastern and Central Europe, where Josab Hungary already have relationships in Hungary and in neighboring countries. The rights issue also provides funds for investing in East Africa, mainly through partner SAFAB.
 

Indicative timetable for the rights issue

  •  Notice of Extraordinary General Meeting published March 3, 2017. 
  •  Complete issuing conditions and other documents made available March 3, 2017.
  •  Extraordinary General Meeting held on 17 march, 2017.
  •  The shares are traded excluding the right to participate in the rights issue date of effect March 23, 2017.
  •  Record date for participating in the rights issue will be March 24, 2017.
  •  Information Memorandum of the rights issue published March 28, 2017.
  •  The subscription period in the rights issue will run for the period 29 March to 20 April 2017.
  •  Trading in BTA takes place from March 29, 2017 until the rights issue Registration of the BTA and converted into shares in Euroclear, which is expected in v. 20.
  •  Announcement of preliminary outcome of the rights offering is expected to occur within a week after the subscription period.
  •  First day of trading in the new shares is expected to occur in v.20.

 


 

Please also refer Josab to the upcoming Information Memorandum regarding the rights issue. Information Memorandum will be available on Josabs website and at the Consensus Asset Management and Aqurat Brokerage's website. 

Financial Advisor, issuing agent and legal adviser 

Consensus Asset Management AB (publ), phone: 08 5458 1561, is the financial advisor to Josab International AB (publ) in connection with the rights issue, Aqurat Fondkommission AB is issuing institution, tel: 08-684 05 800, and DLA Piper Sweden KB is legal adviser, tel: 08-701 78 00.

For further information contact:

Johan Gillgren
President, CEO
Josab International AB (publ)
Phone:
+46 (0)8 121 389 00
E-mail: johan.gillgren@josab.com 

This information is such information, which Josab International AB is obligated to publish under the EU Market Abuse Regulation. The information was provided by the above contact person or merchandise for publication on March 1, 2017. 

About Josab International AB

Josab International AB manufactures and sells ecological water treatment solutions based on the company's patent with the unique filter material Aqualite ™. Josab International AB has four wholly owned subsidiaries, Josab Hungary Kft, Josab India Pvt Ltd, Josab China Ecological Water Treatment Systems Co. Ltd and JOSINT Financial Services AB. Josab International is listed on AktieTorget with code Josa. 

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