More than 89 percent of the convertible bond holders transferred their bonds to SCN in return for shares in Scandivir. 22 MSEK of interest bearing debt eliminated.

Scandinavian Clinical Nutrition (SCN) has now reduced the long-term debt deriving from the convertible bond issue in May 2008 with more than 22 MSEK. More than 89.4 percent of the bond holders have now received shares in Scandivir AB in return at a valuation of 100 MSEK. With this transaction completed, SCN is on the right track of becoming debt-free. SCN is continuing to re-assess non-core assets in order to reduce the debt burden.

The Extraordinary General Meeting (EGM) in SCN on March 31, 2009 decided to offer the holders of the convertible bonds (“Bonds”) which were issued in May 2008 to transfer their Bonds, and the rights attached, to SCN in return for shares in Scandivir AB (“Scandivir”). One debenture was set to be equal to 1.16 shares in Scandivir, valuing the total outstanding shares of Scandivir at MSEK 100, thus valuing each share at SEK 17.24.

The offer was closed on April 24, 2009 and more than 89.4 percent of the Bond holders decided to accept the offer. The former Bond holders are now owners of 22.1 percent of the total amount of the outstanding shares in Scandivir meaning that SCN’s share holding in Scandivir has decreased by 53 percent to 1 284 536 shares equivalent to 22.1 percent of Scandivir.

This is a part of the action plan SCN communicated on February 27, 2009, and SCN is continuing to re-asses its non-core assets in order to find further ways to reduce the company’s debt burden. As of today, total interest-bearing debt amounts to 21.6 MSEK which is a reduction by 58.5 percent since year-end.

“I am pleased that almost all holders of the convertible bonds accepted the offer to transfer the bonds to shares in Scandivir. This also proves that that many of our shares holders also believe in Scandivir and we are now planning on continuing to decrease our shareholding in Scandivir in order to make SCN debt free,” says Ulf Söderberg, CEO at SCN.