Sivers Semiconductors Plans a Major Share Issue for Growth

Sivers Semiconductors Plans a Directed Share Issue

Sivers Semiconductors AB is gearing up for a significant capital raise through a directed issue of ordinary shares totaling approximately SEK 105 million. This initiative, aimed at both Swedish and international institutional investors, reflects the company’s commitment to enhancing its shareholder base and driving further growth.

The Directed Share Issue Explained

The share issue is strategically structured to deviate from the traditional preferential rights of existing shareholders. The Board of Directors has laid out a plan to execute this by utilizing the authorization obtained during a recent annual general meeting. This execution will be split into two separate tranches, allowing the company to optimize both funding and participation.

Tranche Details

The first tranche includes up to 26,100,000 shares, which can be issued under the previous authorization, while the second tranche will cater specifically to select members of the board and management, along with a pre-approved investor. The company anticipates receiving approval for Tranche 2 in an extraordinary general meeting, and the settlement of Tranche 1 is targeted for late January.

Management Participation

It’s notable that company board members will not take part in the initial bookbuilding process for Tranche 1. This decision follows regulatory frameworks that require additional approvals for share allocations to board members, reinforcing a commitment to transparency and governance.

Utilization of Funds from the Share Issue

The capital raised from this directed share issue will serve multiple strategic purposes. Primarily, the funds will support advanced customer product development tailored to meet specific requirements, ensuring Sivers Semiconductors continues to excel in quality and compliance as they ramp their production capacity. Additionally, the funds will be directed at enhancing sales and application support in critical markets, particularly in the U.S., to capture growth opportunities.

Enhancing Competitive Edge

The company aims to leverage these funds to launch a broader product portfolio, which is crucial to expanding its reach in the market. Strengthening their position in an evolving technological landscape is essential, and this financing aims to ensure they remain competitive.

Rationale Behind the Share Issuance

In deliberating the best course of action for raising funds, the Board assessed the pros and cons of a traditional rights issue. They concluded that a directed share issue allows for quicker capital access while minimizing potential adverse effects on share price due to market volatility.

Moreover, by not exercising the pre-emptive rights of existing shareholders, Sivers Semiconductors can diversify its shareholder base, which is anticipated to improve liquidity and stability in the company’s shares.

The Extraordinary General Meeting

Should the board finalize its resolution on the directed share issue, a notice for an extraordinary general meeting will be published. This step is vital for approving Tranche 2, further demonstrating the company’s commitment to governance and shareholder engagement.

Lock-Up Provisions

Post-issue, Sivers Semiconductors has outlined a 180-day lock-up period for future share issuance, which assures investors of stability and confidence in their investment. Senior management and board members will not sell their shares within the first 90 days following the closing of the directed share issue, barring customary exceptions.

Forward-Looking Vision

The future projections for Sivers Semiconductors reflect optimism. The funds raised will catalyze their strategic initiatives, bolster their market position, and extend their influence in crucial sectors such as AI data centers, SATCOM, and telecommunications.

Frequently Asked Questions

What is the purpose of the directed share issue by Sivers Semiconductors?

The funds will facilitate product development, support manufacturing readiness, enhance sales efforts in the U.S., and broaden the product portfolio.

How will the share issue impact current shareholders?

This issue will diversify the shareholder base and improve liquidity, although it deviates from existing shareholders' preferential rights.

What are the key dates related to the share issue?

The price and allocation for Tranche 1 are expected to be finalized before trading opens on Nasdaq Stockholm.

Will board members participate in the share issue?

No, board members will not partake in the initial tranche of the share issue to comply with regulations requiring further approval.

What benefits does Sivers Semiconductors aim to achieve from this fundraising?

The company focuses on strengthening its market position and meeting client demands, which will enhance company performance and support long-term growth.

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