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Direct share issue gives working capital improvement of MSEK 6.2
According to press release of August 22, 2019, TargetEveryone has a short-term deficit in working capital. TargetEveryone has now reached an agreement of a direct share issue and a bridge loan.
Hosni Teque-Omeirat says:
As TargetEveryone is ready to penetrate the market with SpectrumOne, we are very happy that we have received vital funding to move fast forward with our new customers.
The direct share issue decided by the Board of Directors today is subject to approval from an extraordinary shareholders’ meeting and entails a new issue of 44,285,714 shares at a subscription price of SEK 0.14 per share, which means a total issue of SEK 6.2 million. The subscription price has been calculated in order to ensure a subscription price that corresponds to the market value. The Board of Directors has decided that the new shares shall be issued at a price corresponding to the volume-weighted average of the price of the company's share during a period of twenty trading days immediately before September 27, with 13,5 % discount, which is considered to correspond to the market value. Subscribers to the direct issue are Formue Nord Market Neutral A/S (SEK 1,000,000), Jörns Bullmarknad AB (SEK 2,200,000), City Capital Partners AB (SEK 1,500,000) and Dividend Sweden AB (SEK 1,500,000). Due to an urgent need for working capital, a direct share issue is chosen as the time does not allow to carry out a rights issue. Additionally, a direct share issue is more cost-efficient and the subscription rate in the company's most recent rights issue was very low.
To address the short-term deficit situation, a loan agreement is entered with Jörns Bullmarknad AB, with an amount of MSEK 2 and a monthly interest rate of 3% plus arrangement fees. The due date is no later than November 15, 2019.
In addition to the capital contribution described above, TargetEveryone currently has an assurance from a Norwegian financial institution of a loan equal to the MSEK 6.2 direct share issue as soon as said issue has been registered. Thus, the company would then have sufficient working capital to continue ordinary business.
The company will shortly send notice to an extraordinary shareholders’ meeting.
For further information contact:
+47 977 00 338
Mangold Fondkommission AB (556585-1267)
Box 55 691 102 15 Stockholm
Telefon: +46 8 503 015 50
TargetEveryone AB (publ) is obligated to publish this information under the EU Market Abuse Regulation. The information was provided by the above contact person's auspices, for publication on September 27, 2019 at 07.50 a.m. CET.