RIGHTS ISSUE
Clean Industry Solutions Holding Europe AB
THE TRANSACTION IN SHORT
- Subscription period: 12 September – 26 September 2023.
- Trading in subscription rights: 12 September – 21 September 2023.
- Transaction size: approximately 25.5 MSEK before deduction of transaction costs.
- Subscription price: 0.40 SEK per share.
- Pre-money valuation: approximately 10.2 MSEK.
- Terms: Two (2) subscription rights entitle the holder to subscribe for five (5) shares.
Background and Motive
Clean Industry Solutions invests in independently operating innovative companies which provide solutions for a sustainable industry and a circular economy. The current two subsidiaries, Industrial Solar and SolarSpring, offer solutions for the supply of clean energy and clean water for industry. Industrial Solar and SolarSpring are wholly-owned subsidiaries of Clean Industry Solutions.
Clean Industry Solutions recognizes the shifting energy demands in the market caused by external and environmental factors, and they view this as an opportunity for their business. As Europe undergoes a transition from gas to alternative energy sources, Clean Industry Solutions is observing increased interest from potential customers who are seeking the Company’s solutions.
This infusion of funds from the Rights Issue will enable Clean Industry Solutions to make further investments, undertake new projects, and facilitate the continuous growth of its subsidiaries. Moreover, the company anticipates that the strengthened financial position, coupled with changing market demands, will positively impact discussions and negotiations with both existing and prospective customers.
The net proceeds of approximately SEK 21.2 million from the Rights Issue are intended to finance the Company during the coming twelve months. Upon full subscription in the Rights Issue, the Company intends to primarily use the estimated net proceeds of approximately SEK 21.2 million in the following areas of use, ranked in order of priority:
- Financing the growth of the subsidiaries, such as recruitments and expansion projects (approximately 35 percent)
- Working capital for the development of new customer projects (approximately 35 percent)
- Co-finance publicly funded R&D projects (approximately 20 percent)
- Initiate new collaborations and invest in joint ventures in target markets (approximately 10 percent)
The rights issue is thus carried out to provide Clean Industry Solutions working capital and create better conditions to realize the Company’s strategy and business plan to create value for Clean Industry Solutions’ shareholders and other stakeholders.
Disclaimer
Invitation to subscribe for shares in Clean Industry Solutions Holding Europe AB will only be made through the prospectus published on 8 September 2023. The prospectus has been approved and registered by the Swedish Financial Supervisory Authority (Finansinspektionen) and has been made available at https://www.cleanindustrysolutions.com/. Approval of the prospectus by the Swedish Financial Supervisory Authority should not be construed as an endorsement of the company’s shares, subscription rights, or other securities. Any investment decision should be based solely on the information provided in the prospectus to fully understand the potential risks and benefits associated with participating in the preferential subscription. Therefore, it is recommended that an investor reads the entire prospectus.
