The intention to carry out a directed share issue was announced on February 22, 2017 after market close. The board of directors has now resolved, subject to the approval of the Extraordinary General Meeting, on such issue to a number of qualified Swedish investors outside the Company’s existing shareholder base, including Nordea Fonder, Handelsbanken Fonder and Creades, as well as the existing shareholder Swedbank Robur Ny Teknik, on the basis of an accelerated bookbuilding process conducted by the Company’s financial adviser. The Company intends to publish the notice of the Extraordinary General Meeting shortly.

In total, 692 307 new shares will be issued at a subscription price of SEK 260. Accordingly, the directed issue is expected to raise proceeds to the Company of up to SEK 180 million before issue costs.

On February 22, 2017, Cinnober announced that it intends to expand, and within a 24-month period, distribute its wholly-owned subsidiary operating with real-time clearing for banks (the “Subsidiary”). The capital raising from the directed issue will be used to finance the planned expansion of the Subsidiary. The reason for deviating from existing shareholders’ preferential rights is to broaden the Company’s institutional shareholder base and to capitalize on the opportunity to swiftly secure funding on favorable terms for the development of the Subsidiary.

“The issue safeguards our prospects of commercializing opportunities we perceive in the market for real-time technology. At the same time, we are pleased to confirm that the issue broadens our shareholder base with several new, high-quality shareholders” says Veronica Augustsson, CEO of Cinnober.

The directed issue, if approved, will result in an increase of the number of shares in Cinnober by 692,307 from 6,784,728 to 7,477,035 and that the share capital will increase by SEK 692,307 from SEK 6,784,728 to SEK 7,477,035 resulting in a dilution of approximately 9,26 percent for Cinnober’s existing shareholders after the directed issue.

Some of the Company’s largest shareholders, who together hold shares representing approximately 50 percent of the votes in the Company, have committed to vote in favor of a decision on the directed issue at the Extraordinary General Meeting.
SEB Corporate Finance, Skandinaviska Enskilda Banken AB has acted as financial adviser and Hamilton Advokatbyrå KB has been the legal adviser in connection with the issue.