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October 21, 2020
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Press Releases
  EG7 successfully completes a directed issue of 8,747,131 new shares raising proceeds of approximately SEK 429 million
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09/24/2020
 


[This unedited press release is made available courtesy of Gamasutra and its partnership with notable game PR-related resource GamesPress.]

The Board of Directors of Enad Global 7 AB (publ) (“EG7”) has resolved to issue 8,747,131 shares. The subscription price in the Directed Share Issue is SEK 49.0 per share and has been determined through an “accelerated book-building” procedure led by Carnegie Investment Bank AB (publ) and Nordea Bank Abp, filial i Sverige. Through the Directed Share Issue, EG7 will receive proceeds amounting to approximately SEK 429 million, before deduction of costs related to the Directed Share Issue. Several new Swedish and international institutional investors, including TIN fonder and Creades, as well as certain existing shareholders subscribed in the Directed Share Issue.

The Directed Share Issue will strengthen the Company’s financial position and thereby enable the Company to act on acquisition opportunities for further consolidation in the gaming market.

The reasons for the deviation from the shareholders’ preferential right are mainly to further diversify the shareholder base among institutional investors and at the same time raise capital in a time and cost-efficient manner.

The subscription price of SEK 49.0 corresponds to a discount of 15.8 percent to yesterday’s closing price of SEK 58.2 and is in line with the closing price of 22 September 2020 of SEK 48.9, and corresponds to a discount of approximately 1.6 percent compared to the 10 day VWAP of SEK 49.8. The Board of Directors’ assessment is that the subscription price in the Directed Share Issue is in accordance with market conditions since it has been determined through an accelerated book-building procedure.

The Directed Share Issue will result in a dilution for existing shareholders of approximately 19.7 percent of the number of shares and votes in the Company after completion of the transaction, through an increase in the number of outstanding shares and votes of 8,747,131 from 35,655,526 to 44,402,657. 

In connection with the Directed Share Issue, the Company has agreed, with certain exceptions, not to issue additional shares for a period of 90 calendar days after the settlement date. In addition, Robin Flodin (Group CEO and Co-founder) and Alexander Albedj (Chairman of the Board), have committed, with customary exceptions, not to sell any shares in EG7 for a period of 180 calendar days after the settlement date.