MTI Investment announces outcome in preferential rights issue
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MTI Investment SE ("MTI Investment" or the "Company") hereby announces the outcome in the preferential rights issue of units, consisting of shares and warrants of series TO2, which the board of directors resolved on 15 November 2023 under authorization from the annual general meeting held on 9 June 2023 (the "Rights Issue"). The Rights Issue has been subscribed to a total of 47.9 percent, where approximately 26.0 percent was subscribed through the exercise of unit rights and approximately 22.0 percent was subscribed for without the exercise of unit rights.
Outcome in the Rights Issue
The subscription period in the Rights Issue ended on 15 December, 2023. The final outcome shows that a total of 1,049,960 units have been subscribed for in the Rights Issue, corresponding to 47.9 percent of the Rights Issue. 568,397 units were subscribed through the exercise of unit rights, corresponding to 26.0 percent of the Rights Issue. Furthermore, 481,563 units were subscribed for without the exercise of unit rights, corresponding to 22.0 percent of the Rights Issue. Each unit consists of five (5) newly issued shares and three (3) warrants of series TO2. In total, 5,249,800 new shares and 3,149,880 warrants of series TO2 were subscribed.
Through the Rights Issue, the Company will receive approximately SEK 7.9 million before issue costs. Upon full exercise of all warrants of series TO2, the Company may be provided with an additional capital injection of up to approximately SEK 9.4 million.
Pontus Engström, CEO comments
"With the new capital we bring in, we can continue to make investments that generate an immediate cash flow and strengthen MTI Investment, while we can also add some capital in May when the options expire. A big thank you to our existing shareholders for your participation and a warm welcome to all the new shareholders who have chosen to support us through this rights issue."
Allocation of units subscribed for without the exercise of unit rights
Allocation of units subscribed for without the exercise of unit rights has taken place in accordance with what is stated in the EU growth prospectus that the Company published on 27 November, 2023, due to the Rights Issue (the "Prospectus"). Notification of such allocation is announced separately through settlement notes. Nominee-registered shareholders receive notification of allotment in accordance with instructions from the respective nominee.
Shares and share capital
Through the Rights Issue, the number of shares in the Company increase by 5,249,800 shares, from 6,570,978 shares to 11,820,778 shares and the share capital amounts increases with EUR 104,996.00 from EUR 131,419.56 to EUR 236,415.56. If all warrants of series TO2 are fully exercised for subscription of new shares in the Company, the number of shares in the Company will increase with an additional 3,149,880 shares, from 11,820,778 shares to 14,970,658 shares, and the share capital will increase with an additional approximately EUR 62,997.60, from approximately EUR 236,415.56 to approximately EUR 299,413.16.
Warrants of series TO2
Each warrant of series TO2 entitles the holder to subscribe for one (1) new share in the Company. The subscription price for subscription of shares by virtue of the warrants of series TO2 amounts to seventy (70) percent of the volume-weighted average price of the Company's share during the period from and including 23 April 2024 up to and including 7 May 2024, however, not less than the quota value of the share (currently EUR 0.02) and not more than SEK 3.00. Subscription of new shares through warrants of series TO2 shall be carried out according to the terms of the warrants during the period from and including 10 May 2024 up to and including 24 May 2024. Trading with the warrants of series TO2 is expected to take place in conjunction with conversion of BTU into shares and warrants.
Paid subscribed units ("BTU")
Trading with BTU (Paid Subscribed Unit) takes place on Nasdaq First North Growth Market until the conversion of BTU into shares and warrants after the Rights Issue has been registered with the Swedish Companies Registration Office. Registration with the Swedish Companies Registration Office is expected to take place during week 52, 2023.
Advisors
Mangold Fondkommission AB is financial advisor and Qap Legal Advisors AB is legal advisor to MTI Investment in connection with the Rights Issue.
For more information, please contact:
Pontus Engström, CEO, MTI Investment SE
[email protected]
+46 70 716 55 38
This information constitutes information that MTI Investment is obligated to disclose under the EU Market Abuse Regulation. The information was provided, through the agency of the above-mentioned contact person, for public release on 19 December 2023, at 07.45 CET.
About MTI Investment
MTI Investment SE is a Nordic investment and venture-building company, founded in 2014 by a team with extensive experience in emerging markets to invest in East African small and medium-sized enterprises ("SMEs") with high value-adding potential. The Company is active in the expansive East African market, and by being a long-term and active owner, MTI Investment helps its portfolio companies grow faster and become more profitable. The Company invests primarily in innovative and scalable companies that have the potential for a significant positive impact on society.
The MTI Investment shares (MTI) are traded on the Nasdaq First North Growth Market.
Certified Adviser to MTI Investment is Mangold Fondkommission AB.
Read more on: www.mti-investment.com
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Publication, release, or distribution of this press release may in certain jurisdictions be subject to legal restrictions and persons in the jurisdictions where this press release has been made public or distributed should inform themselves of and follow such legal restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with applicable rules in each jurisdiction.
The information in this press release neither contains nor constitutes an offer to acquire, subscribe for or otherwise trade shares, warrants or other securities in MTI Investment. No action has been taken and no action will be taken to allow an offer to the public in any jurisdiction other than Sweden. Invitation to subscribe for units in MTI Investment will only take place through the prospectus which was published by the Company on 27 November 2023 (the "Prospectus") and is available on MTI Investment's website, www.mti-investment.com. The Swedish Financial Supervisory Authority's approval of the Prospectus shall not be construed as an approval of the Company's shares, warrants or other securities. However, this press release is not a prospectus within the meaning of the Prospectus Regulation (EU) 2017/1129 ("Prospectus Regulation"), and this press release neither identifies nor purports to identify risks (direct or indirect) that may be associated with an investment in shares, warrants or other securities in MTI Investment. The information in this press release is only intended to describe the background to the Rights Issue and does not claim to be complete or exhaustive. No assurance shall be given with respect to the accuracy or completeness of the information in this press release. Any investment decision should, in order for an investor to fully understand the potential risks and benefits associated with the decision to participate in the Rights Issue, be based solely on the information in the Prospectus. Therefore, an investor is recommended to read the entire Prospectus. This press release constitutes marketing in accordance with Article 2(k) of the Prospectus Regulation.
The information in this press release may not be published, released or distributed, directly or indirectly, in or to the United States, Australia, Belarus, Hong Kong, Japan, Canada, New Zealand, Russia, Switzerland, Singapore, South Africa, South Korea or any other jurisdiction where such action would be unlawful, subject to legal restrictions or require other actions than those following from Swedish law. Actions in violation of this instruction may constitute violations of applicable securities laws. No shares, warrants or other securities in MTI Investment have been registered, and no shares, warrants or other securities will be registered, under the then-applicable United States Securities Act of 1933 (the "Securities Act") or securities legislation in any state or other jurisdiction in the United States, and may not be offered, sold or otherwise transferred, directly or indirectly, in or to the United States except in accordance with an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in accordance with securities legislation in the relevant state or other jurisdiction in the United States.
In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, "qualified investors" who are (i) persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.
Forward-looking statements
This press release contains forward-looking statements that reflect the Company's intentions, beliefs, or current expectations about and targets for the Company's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "intend", "may", "plan", "estimate", "will", "should", "could", "aim" or "might", or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is required by law.
Om MTI Investment
MTI Investment SE is a Nordic investment and venture building company, founded in 2014 by a team with extensive experience from emerging markets with the aim of investing in East African small and medium-sized enterprises ("SME") with high value-adding potential. The Company is active in the expansive East African market, and by being a long-term and active owner, MTI Investment helps its portfolio companies grow faster and become more profitable. The Company invests primarily in innovative and scalable companies that have the potential for a significant positive impact on society.
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