Veg of Lund announces outcome of rights issue
Veg of Lund AB (publ) (“Veg of Lund” or the “Company”) today announces the outcome of the rights issue of units consisting of shares that was announced on 4 August 2023 (the “Rights Issue”). The Rights Issue has been subscribed to a total of approximately 75 percent, of which approximately 45.54 percent was subscribed with unit rights, approximately 1.56 percent was subscribed without unit rights and approximately 27.87 percent was subscribed by underwriters. Through the Rights Issue, the Company will receive approximately MSEK 17.8 before issue costs.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SWITZERLAND, SINGAPORE, SOUTH AFRICA, SOUTH KOREA, RUSSIA, BELARUS OR ANY OTHER JURISDICTION WHERE THE DISTRIBUTION OF THIS PRESS RELEASE WOULD BE UNLAWFUL OR WOULD REQUIRE OTHER MEASURES THAN SUCH MEASURES WHICH FOLLOWS FROM SWEDISH REGULATIONS. SEE THE “IMPORTANT INFORMATION” SECTION AT THE END OF THIS PRESS RELEASE.
CEO Fredrik Carling comments:
”We appreciate the continuous confidence from existing and new shareholders and will now continue internationalization. Lately we have signed numerous commercial agreements in new relevant markets and look forward to continue doing so in more countries during the fall. In parallel we continue to expand our product portfolio where industrialization of our patented cream is next in line.”
Subscription and allotment
The subscription period for the Rights Issue ended on 29 August 2023. A total of 2,349,572 units, corresponding to approximately 45.54 percent of the Rights Issue, were subscribed for with unit rights and 80,227 units, corresponding to approximately 1.56 percent of the Rights Issue, were subscribed for without unit rights. Thereby, the underwriters are allocated 1,437,592 units, corresponding to approximately 27.87 percent of the Rights Issue. Veg of Lund will thus receive approximately MSEK 17.8 before issue costs, which are estimated to amount to approximately MSEK 5, provided that all underwriters choose cash compensation.
Allocation of units subscribed for without unit rights has been made in accordance with the principles stated in the conditions and instructions available on the Company's website. Each unit consists of four (4) shares. Notification of allocation is made through a contract note sent by mail to each subscriber. Allocated units shall be paid in accordance with the instructions in the contract note.
Trading in BTU
Trading in paid subscribed unit (“BTU”) will take place on Nasdaq First North Growth Market until the conversion of BTU to shares is completed. This is expected to take place around week 37, 2023.
Underwriting commitments
The Rights Issue was subject to underwriting commitments of approximately MSEK 13. Compensation for the underwriting commitments amounts to 15 percent of the guaranteed amount in cash or 18 percent of the guaranteed amount in the form of newly issued shares in the Company. The subscription price for the shares that may be issued in the form of underwriting compensation has, after negotiation with those who have provided underwriting commitments, been set at SEK 1.15 per share, which corresponds to the subscription price in the Rights Issue.
Number of shares and share capital
Through the Rights Issue, the number of shares in the Company increases by 15,469,564 shares, from 25,795,321 shares to 41,264,885 shares and the share capital increases by SEK 990,052.096 from SEK 1,650,900.544 to SEK 2,640,952.64, corresponding to a dilution of 37.49 percent.
Advisors
EK Equity AB acts as financial advisor and Fredersen Advokatbyrå AB acts as legal advisor in connection with the Rights Issue. Hagberg & Aneborn Fondkommission is the issuing agent in the Rights Issue.
For more information, please contact:
Veg of Lund AB (publ)
Fredrik Carling, CEO
Telephone: +46 (0) 703 12 19 42
E-mail: fredrik.carling@vegoflund.se
About Veg of Lund
Veg of Lund AB (publ) develops, markets and sells plant-based foods that meet consumer demands for taste and sustainability. Veg of Lund has its roots in research at Lund University and the company’s business concept is to use its knowledge, patented methods and innovative solutions to develop and sell tasty, climate-smart and locally produced products based on potatoes. Veg of Lund offers alternatives to dairy products (milk drinks) and snacks (smoothies) and also develops meat alternatives. The company’s products are sold under the DUG brand to consumers, restaurants and food companies in Sweden, Switzerland, Denmark, England and Ireland. The company has the ambition to expand mainly in Europe and Asia. The share is listed on Nasdaq First North and trades under the name VOLAB. Read more at ir.vegoflund.se. Mangold Fondkommission AB is the company’s Certified Adviser and can be contacted by phone: +46 8 5030 15 50 or e-mail: ca@mangold.se.
Important information
The publication, announcement or distribution of this press release may, in certain jurisdictions, be subject to legal restrictions and persons in the jurisdictions where this press release has been published or distributed should inform themselves about and comply with such legal restrictions. The recipient of this press release is responsible for using this press release and the information contained herein in accordance with the applicable rules in each jurisdiction. No action has been taken and no action will be taken to permit an offer to the public in jurisdictions other than Sweden.
Any investment decision in connection with the Rights Issue shall be made based on all publicly available information relating to the Company. The information in this press release is published only as background information and does not claim to be complete. Accordingly, an investor should not rely solely on the information in this press release or its accuracy or completeness.
This press release may not be announced, published, or distributed, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, Switzerland, Singapore, South Africa, South Korea, Russia, Belarus or in any other jurisdiction where the distribution of this press release would be unlawful. Nor does this press release constitute an offer to sell new units, shares, unit rights, BTUs or other securities to any person in a jurisdiction where it would not be permitted to make such an offer to such a person or where such action would require other prospectus, registration or other measures other than under Swedish law. The application form and other documents related to the Rights Issue may not be distributed in or to any country where such distribution or the Rights Issue requires measures as stated in the previous sentence or where they would be contrary to the rules of such country. Actions contrary to this instruction may constitute a violation of applicable securities laws.
None of the units, shares, unit rights, BTUs or other securities have been or will be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state or other jurisdiction in the United States and may not be offered, subscribed for, exercised, pledged, sold, resold, allotted, delivered or transferred, resold, assigned, delivered or otherwise transferred, directly or indirectly, in or into the United States except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with the securities laws of any state or other jurisdiction of the United States.
This press release may contain some forward-looking statements that reflects the Company’s current view of future events and financial and operational development. Words such as “intend”, “consider” “expect”, “may”, “plan”, “believe”, “estimate” and other expressions that imply indications or predictions of future developments or trends, and that are not based on historical facts, constitute forward-looking statements. By its nature, forward-looking statements involves known and unknown risks and uncertainties because it is dependent on future events and circumstances. Forward-looking statements is not a guarantee of future results or development and actual outcomes may differ materially from those expressed in forward-looking statements. Neither the Company nor anyone else undertakes to review, update, confirm or publicly announce any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless required by law or the Nasdaq First North regulations for issuers.