Genova will receive around MSEK 200 through the New Share Issue before deduction of costs related to the New Share Issue. The subscription price in the New Share Issue has been determined through an accelerated book-building procedure led by Carnegie Investment Bank AB (publ) ("Carnegie"). The investors in the New Share Issue consist of a number of institutional investors. The subscription price of SEK 55 per share corresponds to a premium of 3.1 percent compared to the volume-weighted average price for the 10 latest trading days.
"Through this new share issue, we are strengthening Genova's financial position and capacity to act on value-creating opportunities that we believe will arise as conditions on the property market are changing. We appreciate the trust from reputable players who believe in and want to invest long-term in Genova, which further strengthens the company's ownership structure", comments Michael Moschewitz, CEO of Genova.
The subscription price for the new ordinary shares in the New Share Issue has been set to SEK 55 per ordinary share and has been determined through an accelerated bookbuilding procedure. Through the New Share Issue, which corresponds to a total of 3,636,363 ordinary shares, Genova will receive SEK 199,999,965 before deduction of costs related to the New Share Issue. The investors in the New Share Issue consist of a number of institutional investors. The New Share Issue is carried out in accordance with the authorisation granted by the Annual General Meeting on 4 May 2022.
The investors in the New Share Issue include institutional investors, including Lancelot Asset Management (on behalf of a client), Swedbank Robur, Länsförsäkringar Fondförvaltning and Enter Fonder.
Genova intends to use the net proceeds from the New Share Issue for opportunities on the transaction market, which the Company expects will arise as a result of challenging market conditions for certain property owners, while Genova maintains a balanced financial risk profile.
The New Share Issue is carried out with deviation from the shareholders' preferential rights. The Board of Directors' assessment is that the Company could not have carried out a capital acquisition to create financial preparedness in another form on more favorable terms for the Company and its shareholders. The Company has in this context, carefully considered the possibility of acquiring the corresponding capital through a new issue of shares with preferential rights for the current shareholders, but it has, however, been assessed that such new issue of shares, compared to the New Share Issue, would entail a significantly longer implementation period and higher costs. A longer implementation period may entail that the Company miss out on such market opportunities for which the capital acquisition serves to create to financial preparedness. A longer implementation period also entails an increased market exposure as well as a higher potential risk of a material negative impact on the share price of the Company's shares. Such new issue of shares would also entail higher costs and would likely be carried out at a lower subscription price. The subscription price of SEK 55 per share corresponds to a premium of 3.1 percent compared to the volume-weighted average price for the 10 latest trading days and a discount of 3.5 percent compared to the closing price on Nasdaq Stockholm on 10 January 2023. The subscription price price has been determined through a so-called accelerated book building procedure carried out with institutional investors by Carnegie. Consequently, it is the the Board of Directors’ assessment that the subscription price reflects current market conditions and demand and is therefore on market terms.
After the registration of the New Share Issue with the Swedish Companies Registration Office, the total number of ordinary shares in Genova will increase with 3,636,363 ordinary shares, and amount to 45,613,329. The New Share Issue entails a dilution of approximately 8 percent of the number of shares and votes in the Company, based on the total amount of shares in Genova after the New Share Issue. The share capital will increase by SEK 4,363,635.60 from SEK 50,372,359.20 to SEK 54,735,994.80. For administrative reasons the New Share Issue will be subscribed for by Carnegie at the quota value to arrange and advance the delivery of ordinary shares to the investors in the New Share Issue.
In connection with the New Share Issue, the Company has, with customary exceptions, undertaken to not issue additional shares during a period of 180 calendar days calculated from the settlement date.
Carnegie Investment Bank acting as Sole Manager and Bookrunner and Gernandt & Danielsson Advokatbyrå KB is legal advisor in connection with the directed new share issue.