OBDUCAT PROPOSES CONVERSION OF CONVERTIBLES AT A LOWER PRICE
The Board of Directors of Obducat calls an Extraordinary Shareholders’ Meeting on Wednesday 7 April 2010.
It is proposed that the Meeting resolves to change the conditions for Obducat’s convertibles 2008/2011. The Board’s proposal means that the holders of the convertibles are offered the opportunity, during the period of 19-30 April 2010, to convert to shares at a rate of SEK 0.27. This can be seen in the notice to attend the Meeting published in a separate press release. A short prospectus will be issued and supplied to the holders of the convertibles before 19 April 2010.
The reason for the proposal is that Obducat’s series B shares are currently traded at a rate which is considerably lower than the existing conversion rate of SEK 1.65. This makes the forecast for conversion uncertain in the present situation, and the convertible loan of SEK 55 million a financial uncertainty for Obducat since it matures in March 2011.
- We need a financial position that is as strong as possible in order to capitalise on the increasing demand we are now seeing in a number of our application areas. That we will have if the convertibles are converted into shares instead of being repaid. A high degree of conversion contributes to strengthening our ability to compete, says Lars Tilly, CEO, Obducat.
Obducat has considered the implementation of a preferential rights issue as an alternative to the proposed measure, but believes that the best solution for the Company and the shareholders is the one which has now been proposed. A preferential rights issue would, in the opinion of the Board, be less attractive since a major part of the issue amount would risk being used to repay the convertible loan in March 2011.
For further information, please contact:
Lars Tilly, CEO: +46 40 36 21 45 or +46 703 27 37 45
Henri Bergstrand, Chairman of the Board: +46 40 36 21 00 or +46 708 88 72 45
Om Obducat AB
Obducat AB is an innovative developer and supplier of technologies, products and processes used for the production and replication of advanced micro and nano structures. Obducat’s products and services are intended to serve the demands of companies within the information storage, semiconductor, printed circuit board, and sensor industries. Obducat’s technologies include electron beam and nano imprint technology. Obducat has offices in Sweden and the UK, with the headquarters located in Malmo, Sweden. The Obducat shares are publicly traded on the Swedish NGM stock exchange.
This is information that Obducat AB is required to make in compliance with the Swedish Securities Market Act. The information was submitted for publication on 18 March 2010 at 08:00.