Latvian Forest Company carries out a rights issue of SEK 27.3 million for continued expansion
The Board of Directors of Latvian Forest Company AB (publ) (“Latvian Forest” or the “Company”) has today, based on the authorization granted by the Annual General Meeting, resolved to carry out a new issue of Class B shares with preferential rights for the Company’s shareholders. The issue comprises a total of approximately SEK 27.3 million and aims to finance continued expansion through the acquisition of additional forest properties and the repayment of shareholder loans used for forest property acquisitions.
The issue is made with preferential rights for the Company’s shareholders. For every eleven (11) existing shares, regardless of share class, one (1) new Class B share may be subscribed. The issue price is SEK 8.20 per new Class B share. Subscription of new shares may also be made without preferential rights.
The record date for the right to participate in the new share issue is 2024-04-09. The last day of trading including the right to subscription rights is thus 2024-04-05. For each share held, one (1) subscription right is received. Eleven (11) subscription rights entitle the holder to subscribe for one (1) new Class B share. The subscription period runs from 2024-04-11 to 2024-04-25.
The subscription rights will be traded on Spotlight Stock Market from 2024-04-11 up to and including 2024-04-22. This means that subscription rights can be purchased by those who wish to participate in the issue with preferential rights or who wish to increase their participation by purchasing more subscription rights. Received subscription rights must therefore either be used for subscription of shares no later than 2024-04-25 or sold no later than 2024-04-22 in order not to expire. Trading in paid subscribed shares (“BTA”) will take place on Spotlight Stock Market from 2024-04-11 until the issue has been registered with the Swedish Companies Registration Office. Final registration of the issue is expected to take place in mid-May 2024.
In total, the issue comprises a maximum of 3,333,047 new Class B shares and, upon full subscription, will provide the Company with SEK 27,330,985.40 before issue costs, which are estimated to amount to a total of approximately SEK 0.9 million. The number of shares after the issue will amount to a maximum of 39,996,568, of which 39,916,568 will be Class B shares, and the number of votes will amount to a maximum of 40,716,658, corresponding to a dilution of approximately 8.19% at full subscription.
The purpose of the upcoming new share issue is to finance continued expansion through the acquisition of additional forest properties and to repay debts of approximately SEK 15 million.
The issue memorandum is expected to be published no later than April 10, 2024. Directly registered shareholders will receive an issue report and relevant information sent to them. Other shareholders receive information through their respective nominees/banks. The memorandum and subscription notes will be available on the company’s website. www.latvianforest.se.
G&W Fondkommission has advised the Company in the preparation of the Issue Memorandum.
The issuing agent in connection with the issue is Aktieinvest FK AB.
This information is information that Latvian Forest Company AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 2.30 p.m. CET on April 2, 2024.