#Sweden #Gothenburg #Minesto #tidal energy #Rights Issue

Minesto’s Ambitious Move Towards Sustainable Energy

In a significant development for the Swedish renewable energy sector, the Board of Directors of Minesto AB has taken a strategic step aimed at enhancing the company’s growth and expanding its capabilities in marine energy. The board has resolved to carry out a rights issue valued at approximately SEK 152.4 million, subject to approval at an extraordinary general meeting scheduled for October 3, 2025.

Details of the Rights Issue

The proposed rights issue will see existing shareholders allocated two subscription rights for each share they own as of the record date, October 8, 2025. The subscription price is set at SEK 1.85 per share, where five subscription rights will allow the holder to purchase one new share. This fundraising effort has already garnered substantial guarantee commitments totaling SEK 99.0 million, which represents around 65% of the total rights issue, showcasing a strong backing from investors who believe in Minesto’s vision.

The funds raised from this rights issue are earmarked for several critical initiatives that align with Minesto’s strategic goals. Primarily, the proceeds will be used to repay a loan obtained in June 2025, which accounts for about 15% of the expected funds. Furthermore, 55% is allocated for upgrading and adapting the Dragon Class system to meet the specifications for the Hestfjord configuration and the Microgrid product range. The investment will not only enhance the technology but also align with the increasing global demand for sustainable energy solutions.

Another 10% of the funds will be directed towards implementing permit processes and detailed design preparations for establishing the Hestfjord facility, while the remaining 20% will cover strategic investments aimed at entering and expanding into market opportunities.

Why This Matters

Minesto holds a unique position within the renewable energy landscape, focusing on harnessing tidal and ocean currents for electricity generation. The company's patented technology, which has been operational in the Faroe Islands since 2020, is expected to play a crucial role in meeting global energy demands sustainably. As the focus on reducing carbon emissions intensifies, Minesto's advancements in marine energy could position the company as a significant player in this sector.

The company’s Dragon Class technology has shown promising results, including a 25% increase in power performance following technical enhancements made over the past year. A critical element of Minesto's expansion strategy includes scaling its output in the Faroe Islands to 200 MW by 2030, starting with the Hestfjord project, which will serve as a catalyst for long-term growth.

This rights issue is not just a financial maneuver but a bold strategic step to support Minesto’s transition into a broader commercial phase, where the focus is on scaling operations without compromising on the technological advances that have made the company a pioneer in the renewable energy field.

What’s Next?

Once the rights issue receives shareholder approval, the company will publish a detailed prospectus expected around October 6, 2025. The subscription process will commence on October 10, 2025, and run until October 24, 2025. This period will be crucial for shareholders to assess their options regarding subscription rights amid potential dilution impacts.

Minesto is on a mission to transform renewable marine energy into a commercially viable and sustainable power source, and with this rights issue, they are taking a vital step towards that goal. The upcoming extraordinary general meeting is set to be a pivotal moment for the future of Minesto and its innovative approach to energy production.