Ibadan – 28 November 2022. – GomSpace has entered a convertible loan agreement of EUR 5 million (SEK 53.6 million) and announced the board of directors’ intention to resolve a rights issue of between EUR 9.2 to 11.5 million (SEK 100 to 125 million). The Company will announce the terms and conditions for the Rights Issue following a board decision to carry out the Rights Issue, indicatively during the first quarter of 2023, with the intention to have the loan amount of EUR 5 million (SEK 53.6 million) converted into new shares in the Rights Issue.
The convertible loan is part of a broader financing plan to secure the long-term funding of the ambitious product investment program announced by GomSpace earlier in 2022. Furthermore, it includes the short-term working capital needs of the Company, consisting of the EUR 5 million (SEK 53.6 million) convertible loan, the EUR 18 million credit facility from the European Investment Bank, and the Rights Issue of between EUR 9.2 to 11.5 million (SEK 100 to 125 million) (of which SEK 53.6 million will be by way of set-off of the convertible loan).
The board of directors has assessed the most appropriate timing of the intended Rights Issue and intends to resolve the Rights Issue and announce the terms and conditions, indicatively, during the first quarter of 2023. The intentions are in light of moving forward with equity financing besides a convertible loan and a credit facility, the necessary period for preparing and getting approval for its prospectus by the Swedish Financial Supervisory Authority. Likewise, it is also predicated on the board of directors deeming it appropriate to initiate the subscription period after the publication of the Company’s financial report for the fourth quarter of 2022.
Assuming a fully-subscribed Rights Issue of between EUR 9.2 to 11.5 million (SEK 100 to 125 million), the Company intends the net proceeds from the Rights Issue to cover: Investment in internal research and development projects of an enlarged satellite platform; and operating expenses and to finance the working capital. Furthermore, any proceeds remaining from the Rights Issue after covering these purposes will cover general corporate purposes.
Niels Buus, CEO of GomSpace, commented: “As the first part of the strategy, we aim to double the standard product content in the deliveries to our customers by initiating a Product Investment Program to create a modular capability to support customers’ different needs for applications and In-Orbit Demonstration platforms.”