TargetEveryone AB announces a partially underwritten rights issue of convertible bonds of approximately MSEK 17.3 and takes up a bridge loan of MSEK 5
Pursuant to the authorization of the General Meeting held on June 28, 2018, the Board of Directors of TargetEveryone AB (publ) (“TargetEveryone” or “the Company”) decided on December 19, 2018 that the Company is to raise a convertible loan of a nominal maximum amount of approximately MSEK 17.3 with preferential rights for existing shareholders. The rights issue is underwritten to 59 per cent through external underwriting agreements. Parallelly, the Company has taken up a bridge loan of MSEK 5 from the underwriters.
Preferential rights issue in brief
The purpose of the rights issue is to develop the market position for the TargetEveryone’s newly launched product SpectrumOne and also to strengthen the working capital of the Company.
Entitlement to subscribe for the convertible bonds with preferential rights will accrue to the Company’s existing shareholders with one share entitling 10 subscription rights and 102 subscription rights are needed to subscribe for one convertible, each with a nominal value of SEK 3.25. Accordingly, the nominal amount of the convertible loan will total a maximum of SEK 17,265,911. The convertible bonds will be issued at a nominal amount.
The record date for participating in the rights Issue is January 17, 2019 and the subscription period will be from January 21 to February 6, 2019. The convertible loan carries an annual rate of interest of 10 %, with semi-annual coupon payments. Holders of convertible bonds are entitled at the beginning of the last month of every quarter throughout the whole period until maturity date, to convert their convertible bonds to new ordinary shares in TargetEveryone at a conversion price of SEK 3.25. The loan falls due for payment on December 31, 2020 unless it is converted prior to this date.
The Company will apply to admit subscription rights and the convertible bonds for trading on Nasdaq First North.
The rights issue is underwritten by Qualcon AB (MSEK 2), Formue Nord Marknadsneutral A/S (MSEK 6), Dividend Sweden AB (MSEK 1.5) and Niclas Löwgren (MSEK 0.6).
The complete terms, conditions and instructions of the convertible bond issue and other information about TargetEveryone will be provided in the Information Memorandum that will be published prior to the subscription period.
Terms of the bridge loan
The bridge loan amounts to SEK 5 and expires in connection with the Company receiving funds from the rights issue. The monthly interest rate is 2,5 %. The Lenders are Gerald Dal (MSEK 1.250), Formue Nord Marknadsneutral A/S (MSEK 3.5),) and Niclas Löwgren (MSEK 0.3).
Preliminary timetable
Date Event
January 14, 2019 Expected publication of the Information Memorandum
January 15, 2019 Last day of trading including rights to receive subscription rights in the issue of convertible bonds
January 16, 2019 First day of trading excluding rights to receive subscription rights in the issue of convertible bonds
January 17, 2019 The record date for entitlement to participate in the issue of convertible bonds
January 21 - February 4, 2019 Trading in subscription rights
January 21 - February 6, 2019 Subscription period
February 11, 2019 Announcement of the final outcome of the issue of convertible bonds
Göteborg Corporate Finance AB and Sparebank 1 Markets are the sole bookrunners for the right issue.
For further information contact:
Fredric Forsman
Chairman of the Board
+46 739 78 78 44
fredric@targeteveryone.com
Certified Adviser:
Mangold Fondkommission AB (556585-1267)
Box 55 691 102 15 Stockholm
Telefon: +46 8 503 015 50
www.mangold.se
TargetEveryone AB (publ) is obligated to publish this information under the EU Market Abuse Regulation. The information was provided by the above contact person's auspices, for publication on December 19, 2018 at 01.00 p.m. CET.
About TargetEveryone
TargetEveryone is a global MARTECH company, enabling our clients to streamline their 1-1 digital marketing, content and experiences within one SasS online platform. Within our solution, Email marketing, SMS, SMS landing pages, Native App development, proximity marketing, QR codes and mobile payment solutions all converge in our easy to use multichannel distribution system. For small- and medium sized customers the company provides an online subscription solution, whilst we serve larger clients directly or through our partner network. The solution is based on big data to analyze and refine the customers behavior and demands. TargetEveryone has over 3000 clients in more than 92 countries, and has experienced strong growth as marketing investments continues to move from traditional media to digital media. Customers include Nespresso, Coop, Vita, Match, DNB, Krogh Optikk, Cirkel K and Red Cross. TargetEveryone´s headquarter is in Oslo, with branch offices in Sweden, Holland, Portugal, India and USA. TargetEveryone is listed on Nasdaq First North in Stockholm and Merkur Market in Oslo.
www.targeteveryone.com