Tecnotree receives 22 Mn Euro investment offer - plans directed share issue
Tecnotree Corporation Stock Exchange Release 9 Jul 2021 at 14:31 EET
Tecnotree Corporation (the “Company”) is planning a directed share issue to raise approximately EUR 22 million in gross proceeds. The purpose of the planned directed issue is to support the debt repayment capability and strengthen the working capital of the Company.
The Company is planning to issue a maximum of 30,577,778 new shares, which is equal to approximately 10.8 per cent of the total number of the Company’s current shares, in a directed share issue in deviation from the shareholders’ pre-emptive subscription rights. Joensuun Kauppa ja Kone Oy has, subject to certain customary conditions, undertaken to subscribe for the majority of the shares in the share issue and one of Company’s existing shareholders, Oy Hammarén & Co Ab, has subject to certain customary conditions, undertaken to subscribe for the remaining shares. After the directed share issue is realized in full, Joensuun Kauppa ja Kone Oy will hold approx. 8.9 per cent of and Oy Hammarén & Co Ab will increase its shareholding to approx. 3.7 per cent of the shares in the Company.
The Company’s Board of Directors has decided to propose to the Extraordinary General Meeting to be convened on 30 July 2021 that it authorizes the Board of Directors to decide on the above-mentioned directed issue. The Company will publish the notice of the General Meeting through a separate stock exchange release later today. If the General Meeting grants the required authorizations, the Company aims to carry out the share issue as soon as possible and by the end of August in any event.
The subscription price would be EUR 0.72, which is approximately 21% lower than the trading price on 8 July 2021 and approximately 4 % lower than the volume-weighted average trading price of the Company’s shares during the 180-day period that ended on 8 July 2021. The subscription price is based on negotiations between the Company and the investors.
The Board of Directors deems that a directed share issue is currently the best available alternative for the Company to raise new capital efficiently and that the planned share issue is in interest of all shareholders.
Shareholders owning a total of approximately 60 per cent (as of 30 June 2021) of the Company’s shares and votes, have undertaken to vote in favor of the authorization for the directed share issue.
Padma Ravichander, the CEO of Tecnotree said, “The interest shown by prestigious investors like Kyosti and Johan is a testimony that Tecnotree is on the right path. I see this as an opportunity for the Company to not just benefit from their Capital but also from their strategic relationships. The Company has set its sights on an ambitious growth path, and I believe such investor interests will further motivate us to achieve the targets.”
Kyosti Kakkonen, the CEO of Joensuun Kauppa ja Kone Oy said, “I am thrilled at the prospect of becoming a part of Tecnotree’s exciting journey as it embarks on its next phase of growth. Tecnotree has a rare combination of Finnish pedigree in cutting edge technology, deep telecom presence and global footprint thereby making it an ambassador of Finnish innovation technology. I have no doubts that our joint efforts will help Tecnotree scale newer heights.”
Johan Hammaren, the CEO of OY Hammaren & Co. Ab. said, “Tecnotree has shown unprecedented resilience and its turnaround has been remarkable. I am happy to explore deeper partnership with Tecnotree where I already have a strong and a long standing relationship. I am very confident that Tecnotree will continue on its robust growth trajectory”.
TECNOTREE CORPORATION
Further information
Padma Ravichander, CEO, tel +97 156 414 1420
Priyesh Ranjan, CFO, tel +971 50 955 1188
About Tecnotree
Tecnotree is the only full stack digital business management solution provider for digital service providers, with over 40 years of deep domain knowledge, proven delivery and transformation capability across the globe. Our open source technology based agile products and solutions comprise the full range (order-to-cash) of business process and subscription management for telecom and other digital service providers. Tecnotree products and platforms service over 800 million subscribers worldwide.Tecnotree is listed on Nasdaq Helsinki (TEM1V). For more information, please visit www.tecnotree.com.