Minesto's SEK 130 Million Rights Issue Aims to Propel Ocean Energy Advancements

Minesto's Ambitious Rights Issue: A Vision for Ocean Energy

Minesto AB, a marine energy technology company, has announced its intention to conduct a rights issue aimed at raising approximately SEK 130 million. The decision comes as part of Minesto's strategy to bolster its commercial project investments, especially focused on innovative tidal energy solutions.

In an official statement released by the company, the Board of Directors revealed that an Extraordinary General Meeting (EGM) is scheduled for November 23, 2026, to discuss amendments to the Articles of Association. This amendment will facilitate the rights issue, enabling the issuance of new shares and warrants, which are critical to the company's growth strategy.

The announcement of the rights issue signals a significant commitment from Minesto, which is already backed by substantial subscription undertakings from its major shareholder, Corespring New Technology AB, amounting to SEK 10.5 million. Furthermore, an additional guarantee commitment from Vator Securities AB has secured an impressive SEK 67.5 million. Together, these commitments provide approximately 60% coverage for the anticipated rights issue, showcasing investor confidence in Minesto’s mission.

Progress and Objectives

Minesto is actively driving forward with its unique Dragon technology, which functions as a subsea power plant that can efficiently harness energy from low-flow tidal streams. The company plans to allocate the proceeds from the rights issue towards several key initiatives:

1. Project Investments: The primary focus will be enhancing investments in the first commercial arrays located in the Hestfjord of the Faroe Islands and the Euro Dragon Farm in Ireland. These projects represent the pioneering use of Minesto's proprietary technology in commercial applications.
2. Technology Advancement: A segment of the funds will facilitate further enhancements and scaling of the Dragon technology, crucial for optimizing energy output and reducing operational costs.
3. Microgrid Development: Continued commitment to the Faroese microgrid initiatives will allow strategic market entry and project development in collaboration with local partners, tapping into numerous markets globally.
4. Operational Growth: The rights issue proceeds will support ongoing operational costs, including working capital necessary for general corporate purposes and partner-led project developments.

Major Milestones

One of the most notable recent achievements includes securing a EUR 20.2 million grant from the EU Innovation Fund for the Euro Dragon Farm project. This funding represents a crucial step for Minesto, as it marks the company's most significant commercial milestone to date. The combination of the rights issue and the grant strengthens Minesto's ability to advance its business plans effectively.

The Way Forward

Minesto is set to meet the challenges of advancing marine energy while maintaining a commitment to sustainability. The company's ability to create commercial power production from the ocean is underscored by its operational experience in the Faroe Islands, where its Dragon power plants have successfully generated electricity for the local grid.

Martin Edlund, CEO of Minesto, emphasizes the company's determination to lead in ocean energy, stating, “With Dragon technology in operation demonstrating high production performance, we are now steering towards the commercial build-out of ocean energy.”

The rights issue is scheduled to officially commence following the approval from the EGM, with the subscription period expected to run from December 7 to December 21, 2026, providing shareholders with the option to acquire additional shares at a discounted rate. By setting a subscription price at approximately 30% lower than the theoretical share price, Minesto is creating a favorable opportunity for its existing investors.

Conclusion

As Minesto embarks on this next phase of investment and technological advancement, the company stands at the forefront of marine energy innovation. The upcoming rights issue is not only a substantial financial maneuver but also a pivotal moment in the quest for sustainable energy solutions from our oceans. Through strategic partnerships and community engagement, Minesto aims to redefine the energy landscape for future generations, fostering an environmental legacy of reduced carbon footprints and increased reliance on renewable energy sources.