Reason for Tern placing coming clear5 Nov 2022 09:04
Wyld Networks AB has carried out a directed issue of new shares of approximately SEK 7.3 million
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Wyld Networks AB has carried out a directed issue of new shares of approximately SEK 7.3 million
The Board of Directors of Wyld Networks AB ("Wyld Networks" or the "Company") has today, based on the authorisation from the Annual General Meeting on 7 June 2022, carried out a directed issue of 604,883 shares (the “Directed Issue”). The subscription price has been determined to SEK 12.03 per share, which corresponds to a discount of 12.5 percent in relation to the volume weighted average price ("VWAP") of the Company's share during the period from and including 31 October 2022 until and including 4 November 2022. Through the Directed Issue, the Company receives approximately SEK 7.3 million before transaction costs. The Directed Issue is directed to strategic and long-term investors.
Background and reasons
In order to satisfy demand from existing customers, as well as to meet demand from new customers, Wyld Networks Board of Directors deems it necessary to raise additional capital. Wyld Networks intends to use the issue proceeds from the Directed Issue to further expand the Company's operations in order to meet the growing demand and to accelerate growth.
More specifically, the Company intends to use the issue proceeds to:
- Strengthen the commercial team in order to accelerate the conversion of launch partners into paying customers, and
- Invest in the development team to maintain competitive advantage and execute on the product roadmap.
The Company's Board of Directors has made an overall assessment and carefully considered the possibility of raising capital through a rights issue. The conclusion of this assessment is that the Directed Issue is objectively the best alternative for the Company and its shareholders.
The reasons for that, and for deviating from the shareholders preferential rights, are to diversify the Company's shareholder base with long-term strategic investors which will strengthen the Company's shareholder base and to carry out a capital raise in a time- and cost-efficient manner to finance further growth. Also, the Board of Directors considers implementing a rights issue in the current market conditions would entail a risk that the Company fails to meet its capital needs and by so fail to maintain an optimal capital structure. The Board of Directors has also considered the high volatility of Wyld Networks’ share, the high number of recent rights issues on Nasdaq First North Growth Market