#Sweden #Securities #Sivers Semiconductors #Stockholm #SEK 105 million

Sivers Semiconductors Announce Intent for Directed Share Issue

Sivers Semiconductors AB, a leader in the semiconductor and photonics sectors, has recently unveiled its plan to proceed with a directed share issue. This initiative aims to raise approximately SEK 105 million from both Swedish and international qualified investors, facilitated through an accelerated book-building methodology.

Purpose of the Share Issue

The primary goal of this directed share issue is to tap into the capital required for various pivotal activities. These activities include:

1. Product Development: Enhancing customer product development initiatives to cater to specific client requirements and to deliver tailored solutions.

2. Manufacturing Readiness: Qualifying essential products and processes ensuring that production capabilities align with industry standards and demands,

3. Sales Expansion: Strengthening sales and application support in the U.S. market to seize growth opportunities in this key region.

4. Market Portfolio Development: Launching a comprehensive market product portfolio that enriches core offerings and expands overall market reach.

Structure of the Directed Share Issue

The share issue will occur in two tranches. The first tranche will allow the issuance of up to 26.1 million shares, while the second will be reserved for selected board members, management, and specific investors. The latter will require approval from an extraordinary general meeting (EGM). The Board of Directors has specified that Tranche 1 does not hinge on the completion of Tranche 2, and if everything goes according to plan, shares from Tranche 1 can be settled around January 20, 2025.

To ensure transparency and reflection of market conditions, the subscription price for shares will be determined through the accelerated book-building process. This pricing is anticipated to align with current market demand.

Rationale Behind the Share Issue

The decision to issue shares with a deviation from shareholders' preferential rights follows careful consideration by the Board. It was deemed necessary to diversify and fortify the company’s shareholder base while enhancing share liquidity. Moreover, the Board identified that a regular rights issue could prolong the process significantly and could negatively impact share price amid volatile market conditions.

Adhering to the relevant regulations under the Swedish Companies Act, any part of the share issue allocated to board members mandates a high level of approval during the upcoming EGM. Additionally, an external investor has expressed interest in participating under certain conditions, which adds support to the rationale behind Tranche 2.

Financial Obligations and Future Discussions

Currently, Sivers Semiconductors has outstanding debt totaling SEK 132 million, of which the majority is due to Fenja Capital and partners. The timeline for repayments and financial forecasting necessitates ongoing dialogues with both existing and prospective lenders to arrange suitable refinancing options. Meeting the obligations represented by the remaining SEK 13 million is intended for resolution upon the completion of the share issue.

Looking Ahead

The projected outcomes of the share issue are aimed at fulfilling crucial fiscal needs while enhancing the technological efforts of Sivers Semiconductors. Experts believe that with the right allocation of raised capital, the company is strategically poised to achieve valuable growth objectives within the evolving semiconductor landscape.

Sivers Semiconductors positions itself as a critical enabler of a greener data economy through energy-efficient photonics and wireless solutions. With cutting-edge technologies assisting key sectors such as AI Data Centers, SATCOM, and Defense, the firm is earnest in overcoming existing performance challenges and presenting a reduced environmental footprint.

With the announcement now public, discussions and strategic decisions will play a crucial role in shaping the company's future amidst a backdrop of innovation and growth potential. Stay tuned for further updates regarding the outcome of the directed share issue and other significant developments from Sivers Semiconductors.