On 5 September 2016, the board of directors of SolTech Energy Sweden AB (publ.), supported by authorization granted at the annual Stockholders meeting held on 26 May 2016, decided on a guaranteed new capital stock issue in the form of subscription units consisting of stock and warrants with preferential rights for stockholders. G&W Fondkommission (Security broker) is the Company’s advisor in connection with the new issue. The decision is in line with previously published plans to, in part, finance the Company’s operational capital – and in part, together with SolTech’s Chinese partner, Advanced Solar Power Hangzhou Inc. (ASP), to finance the capital needed to install solar energy units in China. These installations are carried out by Soltech and ASP’s jointly owned subsidiary Advanced SolTech Renewable Energy Hangzhou Co. Ltd. (ASRE).
The new capital stock issue is almost 80% guaranteed by subscription requirements and new stock issue guarantees, equivalent to a total sum of approximately 42.1 MSEK ($ US). SolTech, however, has not requested or obtained bank-backed security to meet them. The guarantee’s size exceeds SolTech’s share of the agreed upon contribution of its own capital (equivalent to approximately 38.5 MSEK ($ US), or 4 MEUR). An identical sum will also be furnished by ASP, which already has the money available. The contribution of each party’s own capital is a part of the planned financing of ASRE for 2016, which also consists of local bank financing in China. Altogether, these capital inputs are estimated as sufficient to enable the construction, as well as the coupling to the central network, of all the solar installations that have thus far been sold in China.
Assuming approval by Sweden’s Financial Supervisory Authority (Finansinspectionen – FI), the prospectus for the new capital stock issue will present a so-called unit subscription, where every unit consists of a share and a warrant. The new capital stock issue (excluding warrants) will provide the company approximately 52.6 million SEK ($ US), assuming a fully subscribed offer, before deducting standard new issue costs, estimated to amount to approximately 5.0 MSEK ($ US). In the case of demonstrated great interest, the board will determine if there is to be an added allocation of up to a maximum of 2.5 MSEK ($ US).
New capital stock issue terms:
- The new stock issue will extend to a maximum of 4,045,902 units, with each and every one consisting of one (1) new share and one (1) payment-free warrant.
- Thirteen “old” shares entitle the holder to subscribe to two (2) units.
- The issue price is 13.0 SEK per unit.
- Two warrants give the holder the right to subscribe a new share for 30 SEK under the period spanning 2 – 31 October 2017.
Preliminary time-plan for the new capital stock issue, assuming the FI approves the prospectus.
- Last day for trading the stock with subscription rights included will be 9 September 2016
- The day of record will be 13 September 2016.
- The prospectus is expected to be published by 15 September 2016 at the latest
- Subscription of units with and without preferential rights will take place during the period spanning 16 September – 3 October 2016.
- Trading with BTU will take place beginning 16 September, and continue until the date the new capital stock issue is registered with the Swedish Companies Registration Office (Bolagsverket), which is estimated to occur on or about 20 October 2016.
- Trading with unit rights will take place during the period spanning 16 – 29 Sept. 2016.
* Based on an exchange rate of 8.5 SEK/US Dollar
For more information, please contact: Frederic Telander, CEO SolTech Energy Tel; +468-441 88 46. Email: email@example.com
SolTech Energy 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 2019 an installed capacity of approximately 230 MW in full operation, generating current annual sales amounting to approximately 400 MSEK ($47,100,000 US).