Tilgin’s share issue oversubscribed – raises approximately 46 MSEK

Tilgin AB (publ) has finalised a share issue directed to current shareholders and holders of option rights and convertible debentures. Tilgin raises approximately 46 MSEK before costs for the share issue.

The purpose of the share issue was to secure the company’s short term need for working capital and to finance product and business development. The share issue comprised 6 610 477 shares at a subscription price of SEK 7 per share. Every two shares held by current shareholders, and that holders of options rights or convertible debentures were entitled to subscribe for or convert to respectively, gave the right to subscribe to one new share. The share issue was oversubscribed.

”This is very good news for the company. We are currently in an exciting phase and this share issue strengthens our financial position and paves the way for continuous investments in our products and business until we reach profitability. We are now better positioned to benefit from the fast growing IP-based telephony and TV solution market”, says Jan Werne, CEO of Tilgin.

A stronger financial position also brings greater security for Tilgin’s employees, customers and suppliers.

”Our growth strategy remains unchanged. During the period between January and June this year, Tilgin has grown over 300 percent, compared to the same period last year”, says Jan Werne.

The issue has been directed at current shareholders and holders of option rights and convertible debentures. After the share issue, the total number of shares in the company will be 18 728 870.

The objective to reach break-even during the second half of 2006 remains unchanged, as does the ambition to list the Tilgin share during 2006.