Ovzon carries out a directed new share issue of approximately SEK 84.5million

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Ovzon AB (publ) ("Ovzon" or the "Company ") has today resolved to carry out a new share issue of a maximum of 1,358,559 shares at a subscription price of SEK 62.18 per share, and is thereby provided with proceeds amounting to approximately SEK 84.5 million before deduction of transaction costs (the "Share Issue"). The subscriber in the Share Issue is Stena Finans AB. The board of directors of Ovzon believes that Stena Finans AB is a strategical and reputable institutional investor in the Company and the Share Issue also enables a capital raising in a time-efficient manner at attractive terms. The Share Issue will be carried out based on the authorisation from the annual general meeting held 10 April 2019.

The share issue

The Share Issue has been resolved upon by the board of directors of Ovzon based on the authorisation from the annual general meeting held 10 April 2019. All 1,358,599 shares in the Share Issue have been subscribed for by Stena Finans AB, whereby Ovzon will receive proceeds of approximately SEK 84.5 million before deduction of transactions costs.

The subscription price in the Share Issue amounts to SEK 62.18 per share, which corresponds to the volume weighted average price during the period 15 January up to and including 28 January 2020. Since the subscription price has been determined in accordance with the above, it is the board of directors' opinion that the subscription price is marketable.

The proceeds are expected to provide the Company with further financial leeway and enable the Company to better execute on its existing business plan. Further, the purpose of the Share Issue and the reasons for deviating from the shareholders' preferential rights is that the Share Issue shall be directed to Stena Finans AB, who the board of directors in Ovzon considers to be a strategical and reputable institutional investor in the Company and to raise capital in a time-efficient manner at attractive terms.


Shares, share capital and dilution

Through the Share Issue, the Company's share capital will increase by SEK 135,855.90, from SEK 3,358,559.60 to SEK 3,494,415.50 while the number of shares and votes will increase by 1,358,559, from 33,585,596 to 34,944,155. The Share Issue involves a dilution for existing shareholders in the Company of approximately 3,9 percent in relation to the number of shares in the Company after completion of the Share Issue.

"With this capital injection, we can expedite product development of terminals and further increase our marketing and sales activities. This will strengthen the activities for our own, fully financed, satellite, Ovzon 3, the first of a number of planned satellites designed to give global coverage for our advanced service and our strategy to revolutionize mobile broadband via satellite ", says Magnus René, Group CEO.


Carnegie Investment Bank AB (publ) acts as financial adviser to the Company and Baker McKenzie acts as legal adviser to the Company in connection with the Share Issue.

FNCA Sweden AB, +46(0)8-528 00 399, info@fnca.se, is the company’s Certified Adviser.

This information is information that Ovzon AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact persons set out below, on 29 January 2020 at the time stated by Ovzon's news distributor Cision at publication of this press release.

For more information, contact

Magnus René, CEO
+1 781 266 6957

Johan Brandt, CFO
+46 703 69 33 00 

For additional information please contact

Magnus René, CEO, mre@ovzon.com, +1 781 266 6957

Johan Brandt, CFO, jbr@ovzon.com, +46 70 369 33 00

Ovzon is revolutionizing mobile broadband via satellite providing global coverage with the highest bandwidth through the smallest terminals. Founded in 2006, Ovzon develops end-to-end solutions meeting the growing demand of mobile broadband connectivity for customers with high performance requirements.
Ovzon’s combination of advanced proprietary satellite technology and unique ultra-small terminals answers the needs for mobile users to connect anywhere and transmit large amounts of data. Customers include Government, Defense, Media, Maritime, Aviation and NGOs using highly mobile platforms. Our dedicated and experienced team ensures a premium service for our demanding global customers.
The company has offices in Stockholm in Sweden and Bethesda (MD) and Tampa (FL) in the United States. Ovzon is publicly listed on Nasdaq First North Growth Market


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