SOTKAMO SILVER HAS RESOLVED TO IMPLEMENT A DIRECTED SHARE ISSUE OF A MAXIMUM OF 11,931,369 SHARES, RAISING PROCEEDS OF A MAXIMUM OF APPROX. MEUR 4.1.
As part of the conditional financing package that Sotkamo Silver AB (publ) (the “Company”) announced on 2 March 2018, the Board of Directors of the Company has resolved, based on the authorization granted by the Annual General Meeting on 23 March 2017 to a directed share issue a maximum of 11,931,369 shares for a subscription price of EUR 0.34 per share according earlier announced plan.
The right to subscribe for shares shall, with derogation from the shareholders’ pre-emption rights, vest in a limited number of external investors informed by the company. These subscription commitments fully cover the company's directed issue (10%), so that the issue will be fully subscribed.
Subscription of shares shall be made on a subscription list at latest on 22 March 2018. Subscribed shares shall be paid in at latest on 27thMarch 2018. The board of directors shall be entitled to extend the subscription and payment period. If the share issue is fully subscribed, the Company will obtain approximately MEUR 4.1 before issue costs.
The motive for the share issue and to the derogation from the shareholders’ pre-emption rights is to secure the financing of the silver mine project. The subscription price has been determined after negotiations with the investors and is based on a calculation of the volume weighted average closing price for the company’s share during a three months period ending on 1 March 2018, with a customary discount in order to ensure the implementation of the share issue.
The directed share issue entails a dilution effect of approximately 9.1 percent based on the total number of shares in the Company after the directed share issue.
With regards to financing package, bond financing and convertible bond emission, preparations proceed as announced on March 2, 2018.
Stockholm, March 13th2018
Timo Lindborg, CEO
Timo Lindborg, CEO of Sotkamo Silver AB, tel. +358 40 508 3507
This information is information that Sotkamo Silver AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 13 March 2018, at 08.45 CET.
The official Stock Exchange Releases are given in Swedish and there may be differences in the translated versions.
About Sotkamo Silver AB
Sotkamo Silver AB´s business concept is to exploit mineral deposits in the Nordic countries with positive social and environmental benefits. Sotkamo Silver owns mineral deposits, which contain silver and gold in Finland as well as zinc and gold in Norway. The Company’s main development project is the Silver Mine project in the municipality of Sotkamo.
Sotkamo Silver applies SveMin’s & FinnMin’s respective rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to report mineral resources and ore reserves according to the internationally accepted JORC or NI 43-101 code. The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.
Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93
The ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 in NASDAQ Helsinki.
ISIN-code for Sotkamo Silver shares is SE0001057910.
Read more about Sotkamo Silver on d or www.silver.fi
The Company's press releases and financial reports are distributed via Cision Sverige and are available on www.silver.fi