New stock issue of Units in SolTech Energy Sweden AB (publ), oversubscribed by 70%

SolTech Energy Sweden AB (publ.) (”SolTech”), the leading solar energy company in the Nordic region, has carried out an approximately 70% oversubscribed new stock issue of Units, with preferential rights for the Company’s stockholders. SolTech is thereby provided approximately 55.1 MSEK (5.6 MEUR), including an over- subscription allocation of circa 2.5 MSEK, which was fully utilized by reason of strong interest in the new issue.

CEO Frederic Telander comments

  • SolTech will be provided a total of 55.1 MSEK (5.6 MEUR). We are heartened and proud of the confidence made apparent by our stockholders, and not least by the new investors, through their strong subscription to the new stock issue. We now number, with measure to spare, 10,000 shareholders in SolTech. The liquidity provided by the new stock issue will primarily be used to finance this fall’s financing of our jointly owned Chinese subsidiary, Advanced SolTech Renewable Energy Hangzhou Co. Ltd (ASRE). By the turn of the year, we expect a total of circa 16.5 MW (Megawatts), which is now also fully financed, to be coupled to the central network. This capacity is estimated, over the period beginning 2017 and ending 20 years thereafter, to generate annual earnings amounting to approximately 30 MSEK (3.1 MEUR).”

Offer in brief and its outcome

  • After the Offer’s completion, SolTech is provided with gross proceeds amounting to approximately 55.1 MSEK (5.6 MEUR), including the proceeds of a fully utilized oversubscription allocation.
  • Every 13 existing shares entitle the holder to subscribe to two (2) Units. Shareholders in SolTech Energy AB (publ.) obtain one (1) Unit right for every one (1) existing share. Thirteen (13) Unit rights are required in order to subscribe to (2) Units.
  • The issue price is 13.0 SEK per Unit.
  • The new stock issue will extend to a maximum of 4,045,902 units, with each and every unit consisting of one (1) new share and one (1) cost-free warrant, which represents a dilution of approximately 13 percent. Two (2) warrants give the holder the right to subscribe a new share for 30 SEK under the period spanning 2 – 31 October 2017.
  • The Board has executed an Oversubscription allocation option amounting to a further circa 195,000 Units that, on the strength of strong demonstrated interest, will be fully utilized. Therefore, the offer will encompass – with the inclusion of the Oversubscription allocation – circa 4,240,902 shares, equivalent to 14% of the company’s stock.
  • Up to 80% of the new stock issue was guaranteed by an investment consortium, coordinated by the Company’s advisor, which committed itself to subscribing up to 41.6 MSEK of the Offer. In light of the oversubscription, this guarantee need not be taken into account. The guarantors’ fee, equivalent to approximately 4.16 MSEK, is met in the form of 320,000 Units.
  • A total of 4,560,002 warrants have been issued within the framework of the Offer, including those issued in connection with the oversubscription and guaranty remuneration. In the event all warrants are exercised in October 2017, a new subscription, in effect, would take place for 2,280,451 shares, corresponding to, maximum, 1.9 percent of the Company’s shares. In which case, the Company would be provided with a further injection of approximately 68. 4 MSEK (7 MEUR) in capital.
  • Estimated settlement day is 31 October 2016

G & W Fondkommission (Security Broker) is the financial advisor to SolTech in connection with the Offer, as well as the Company’s Certified Adviser.

For more information, please contact:
Frederic Telander, CEO SolTech Energy Tel; 08-441 88 46, email; Frederic.telander@soltechenergy.com

SolTech Enery in brief
SolTech Energy develops and sells a solar energy system based on research carried out over several years at Kungliga Tekniska Högskolan (KTH- Royal Institute of Technology). The system is a part of a building’s outer shell; specifically, roofs and/or walls formed of glass (panels or glass plates) that function as both weather protection and sun-catchers for the production of heat, hot water and electricity. The assortment of suitable glass also includes unique thin-film solar cells in black and/or semi-transparent glass – or as isolated glass modules in various sizes and formats that promote integration with a building’s outer shell.

SolTech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. Included in the concern are its jointly owned (51%) subsidiaries Advanced SolTech Sweden AB (publ.) ASAB, and Advanced SolTech Renewable Energy, Hangzhou Inc. (ASRE), as well as its wholly owned Wasa Rör T Mickelsson AB. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.com

Investment in China
SolTech’s investment in China is carried out by a jointly owned company, Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd (ASRE), where SolTech is the majority (51%) owner and Advanced Solar Power Hangzhou Inc. the minority (49%) owner. The business model consists of having said jointly owned company, ASRE, responsible for the installation, ownership, and periodic maintenance of solar energy installations mounted on the roofs of customer-owned facilities. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term, 20-25 year contract to buy all the electricity and/or thermal heat the relevant unit produces. ASRE’s current income comes from the sale of electricity to customers, in combination with various forms of subsidies per produced kWh. The strategy is to build a backlog of orders for 2016 and beyond, with the goal of obtaining by the year 2020 an installed capacity of approximately 230 MW in full operation, generating current annual sales amounting to approximately 400 MSEK (43 MEUR).

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