Swedish Stirling announces that a product sales agreement is unlikely to be reached with Glencore and extends subscription period in the rights issue
The Board of Directors of Swedish Stirling AB (publ) ("Swedish Stirling" or the "Company") hereby announces that, based on the terms included in Glencore’s proposal, and the terms required by Glencore, for a product sales agreement for PWR BLOKs, Swedish Stirling deems it unlikely that the parties will reach a product sales agreement for PWR BLOK. In light hereof, Swedish Stirling’s Board of Directors has resolved to extend the subscription period in the rights issue, and intends to waive the subscription and underwriting commitments received by a number of existing shareholders and external investors.
Update regarding potential product sales agreement for PWR BLOKs with Glencore
On 9 November 2022, Swedish Stirling and Glencore Operations South Africa Proprietary Ltd (“Glencore”) entered into a letter of intent, in terms of which the parties agreed, on a non-binding basis, to negotiate certain potential changes to their original agreement regarding an energy conversion service, with the aim to agree on the commercial terms of a sale of up to 25 PWR BLOKs (the corresponding number of PWR BLOKs as covered by the original agreement), at Glencore’s Lion ferrochrome smelter in South Africa, by no later than 31 March 2023.
Today, on 22 December 2022, Glencore presented a firm proposal and its required terms for a potential product sales agreement for PWR BLOKs. Based on the terms included in Glencore’s proposal, and the terms required by Glencore, Swedish Stirling deems it unlikely that the parties will reach an agreement for a product sales agreement for PWR BLOKs.
Implications on the Rights Issue
On 21 December 2022, the subscription period ended in the issue of ordinary shares of approximately SEK 200 million before transaction costs, with preferential right for the Company’s existing shareholders (the “Rights Issue”).
Swedish Stirling’s Board of Directors has resolved to extend the subscription period in the Rights Issue. The extended subscription period will run from and including 23 December 2022, up and including 31 January 2023.
Swedish Stirling will also prepare and publish a supplement to the Rights Issue prospectus. The supplement will be published as soon as it has been approved by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) (the “SFSA”). Investors who have subscribed for shares in the Rights Issue are entitled to withdraw their applications after publication of the prospectus supplement. The withdrawal period will commence on the date following the SFSA’s approval of the prospectus supplement, and will expire on 31 January 2023. More information on how to withdraw subscriptions will be included in the prospectus supplement.
The above means that Swedish Stirling will not publish preliminary or final outcome of the Rights Issue today or tomorrow, respectively, as previously communicated. Outcome of the Rights Issue will be published once the extended subscription period has expired.
Subscription and underwriting commitments
Swedish Stirling also intends to waive the subscription and underwriting commitments received by a number of existing shareholders and external investors, meaning that these parties would not be bound by their obligations to subscribe for shares in the Rights Issue. A waiver of the underwriting commitments will be subject to agreement with the investors.
This information is information that Swedish Stirling AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below on 22 December 2022 at 23:45 CET.
For further information please contact:
Sven Ljungberg, CCO, Swedish Stirling AB, +46 (0)31 385 88 30 ir@swedishstirling.com.
About Swedish Stirling AB
Swedish Stirling is a Swedish clean-tech company founded in 2008 with a mission to further refine the incomparable ability of Stirling technology to convert thermal energy into electricity. The company’s latest product, the PWR BLOK unit, is a unique proprietary solution for recovering energy from industrial residual gases and heat, and for converting this into 100 percent carbon-neutral electricity with high efficiency. The company’s vison is to establish Stirling technology as the best option for local, sustainable electricity generation. Swedish Stirling AB is listed on Nasdaq First North Premier and FNCA Sweden AB is appointed Certified Adviser, +46(0)8-528 00 399, info@fnca.se. Read more at www.swedishstirling.com.
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