Saxlund Group AB (publ) has entered into a financing agreement with its largest owner Gabrielsson Invest AB and with Trention AB (publ) to carry out a capitalization of Saxlund Group AB (publ) to ensure the strong growth that is expected
The capitalization will take place in two steps.
1) A fully guaranteed rights issue of SEK 85 million where the main guarantors will be Trention AB and Gabrielsson Invest AB. The issue takes place in the form of units where each unit consists of a new share and a warrant. To subscribe for four units, five existing shares are required. The issue price is SEK 0.32 per unit. The warrants can be exercised for new subscriptions of shares up to and including 31 December 2022. The strike price for new subscriptions is SEK 1.
2) A credit and guarantee agreement of SEK 20 million
The background to the agreement is that Saxlund has suffered from its weak financial position caused by both the market adjustment and the restructuring that the company has carried out over the past 18 months. The restructuring has been successful, which among other things has led to the order intake developing positively in all markets (despite Cov-19) and in core products. Efficiency has also improved with a better operating result from quarter to quarter. The new financing ensures a strong continuous development in a market where percentile growth is expected to be in double digits. The new financing will also in future result in a net interest income which will be almost zero.
The Board of Directors of Saxlund Group AB has decided to call the shareholders to an Extraordinary General Meeting to decide on the new share issue. A separate notice will be distributed to the shareholders.
“- I am very pleased with this financing agreement which ensures the continued development of the company. This, combined with the fact that we have reduced costs by SEK 34 million at an annual rate, means that we have an extraordinary situation in the future, ”comments Stefan Wallerman, CEO of Saxlund Group. There is great potential for the company to sharply increase revenues on a par with market growth. Several very positive indicators, including the law on phosphorus recycling and requirements for green energy production will benefit the markets where we are located. EU adjustment support of 750 billion euros and Sweden’s focus on green conversion will increase the rate of investment significantly, ”says Stefan Wallerman.
“- Through its participation in the board of Saxlund, Trention has worked with and followed the company closely and looks positively at the company’s future and therefore participates as a guarantor in the upcoming issue,” says William Heigard, CEO of Trention AB.
“- We have been active main owners in Saxlund for the past 18 months, where we, together with the management, have carried out a successful restructuring. Saxlund is today a company that is in a market in strong growth and through this financing agreement we show our continued confidence in the company “, says Kenneth Eriksson, CEO Gabrielsson Invest AB and Chairman of the Board of Saxlund Group.