Endomines' board of directors resolves on a directed set-off issue of sharesPress release (PDF)
Endomines AB (publ), Stock Exchange Release 17 August 2022 at 18:30 CET
The board of directors of Endomines AB (publ) ("Endomines" or the "Company") has today, 17 August 2022, resolved, based on the authorisation from the annual general meeting on 24 May 2022, on a directed share issue with payment through set-off of up to 500,000 shares to the Company's lender, AJ EAB Value Hedge UCITS Fund, which will result in the Company's debt decreasing by up to EUR 100,000 (the "Set-Off Issue"). The subscription price in the Set-Off Issue amounts to EUR 0.20 per share.
As previously announced, the Company's subsidiary, Endomines Finland Oyj, entered into a financing arrangement with a group of Finnish investors, where AJ EAB Value Hedge UCITS Fund was one of the investors, on 22 June 2022. Endomines and AJ EAB Value Hedge UCITS Fund have subsequently entered into an agreement to move the loan from Endomines Finland Oyj to Endomines AB (publ). Through the agreement, the Company has taken over the subsidiary's debt. The board of directors of Endomines has today, on 17 August 2022, resolved on a Set-Off Issue to AJ EAB Value Hedge UCITS Fund through which the Company offsets up to EUR 100,000 in debt against up to 500,000 new shares.
The shares will be issued at a subscription price of EUR 0.20 per share. The subscription price in the Set-Off Issue has been determined in accordance with the loan agreement between Endomines and the lender. The board of directors considers that the shares are issued on market terms. Subscription for the new shares shall be made no later than three banking days after the date of the new issue resolution.
The reason for the deviation from the shareholders' preferential rights is that the board of directors considers that it is to the advantage of the Company's continued development to reduce the Company's indebtedness through a set-off issue of shares.
The Set-Off Issue is expected to be registered with the Swedish Companies Registration Office on or around 22 August 2022. Following the registration of the Set-Off Issue the share capital will increase with SEK 1,000,000 to SEK 533,396,756 and the number of shares and votes will increase with 500,000 to 266,698,378 shares and votes. This corresponds to a dilution effect of approximately 0.19 percent of the share capital and votes calculated after the Set-Off Issue.
Mikko Sopanen, CFO, firstname.lastname@example.org, +358 50 434 7439
This information was submitted for publication through the contact person set out above at 18:30 CET on 17 August 2022.
Endomines is a mining and exploration company with its primary focus on gold. The Company explores for gold along the Karelian Gold Line in Eastern Finland and develops mining operations in Idaho, USA and Finland. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.
The shares trade on Nasdaq Stockholm (ENDO) and Nasdaq Helsinki (ENDOM).