Bawat Water Technologies AB’s (“Bawat” or the “Company”) combined Offering of Units (the “Offering”) and loan set-off will amount to SEK 56.7 million in total, excluding the exercise of warrants next year. 1,815,406 Units were subscribed, corresponding to approximately 79 per cent of the Offering, and the Company will receive cash proceeds of approximately SEK 35.4 million before transaction costs. The Danish Green Investment Fund and the Danish Maritime Fund have agreed to set off SEK 21.3 million in previous loans against new shares in Bawat immediately prior to the first day of trading on Nasdaq First North Premier Growth Market in Stockholm, which is planned for March 28, 2022.
Marcus P. Hummer, Bawat’s CEO, says:
“Considering the stock market volatility in recent weeks, we are pleased with the result. I am very grateful for the support from our existing shareholder and lenders, and not least from all our new shareholders in all four Nordic countries. With your backing we can make the most of the momentum we are already experiencing and further strengthen our international sales and marketing presence.”
The Offering in brief
- The Offering consisted of 2,300,000 Units. Each Unit consist of three (3) new shares in Bawat and one (1) warrant of series TO1 (together “Units”).
- The subscription price was SEK 19.5 per Unit, corresponding to SEK 6.5 per share and a Company valuation of approximately SEK 200 million before the Offering. The warrants of series TO1 were issued free of charge.
- Certain existing shareholders, including members of the board of directors and senior management, and a group of new investors had undertaken to subscribe Units in the Offering for an amount of SEK 23.3 million, corresponding to 52% of the Offering.
- A total of 1,815,406 Units were subscribed in the Offering raising approximately SEK 35.4 million before costs. Thus, the Offering was subscribed to 79 per cent. The Oversubscription option of up to 1,150,000 additional Units will not be used.
- As a result of the Offering, 5,446,218 new shares in Bawat will be issued and the Company will add approximately 730 new shareholders in Denmark, Finland, Norway, and Sweden.
- 1,815,406 warrants of series TO1 will also be issued. Each warrant entitles the holder to subscribe for one (1) new share in the company during a 14-day period following the publication of the Company’s Q1 2023 report.
- The exercise price for the warrants will correspond to 70 percent of the Volume Weighted Average Price (VWAP) of Bawat’s shares on Nasdaq First North Premier Growth Market in the ten-day period leading up to two trading days before the publication of the Company’s Q1 2023 report but at least SEK 6.2 and not more than SEK 13.
- If all the warrants of series TO1 are exercised, the Company will receive up to an additional SEK 23.6 million in proceeds before costs.
- Following the Offering, but prior to the loan set off, Bawat’s share capital consists of 36,265,431 shares of quota value SEK 0.0165 each.
- The Danish Green Investment Fund (Danmarks Grønne Investeringsfond) and the Danish Maritime Fund (Den Danske Maritime Fond) have agreed to set off previous loans amounting to SEK 21.3 million in total against new shares in the Company at a subscription price corresponding to the Offering share price. The loan set off will take place immediately prior to the first day of trading on Nasdaq First North Premier Growth Market in Stockholm and will be announced at that time.
- The expected settlement date is March 25, 2022.
- The expected first day of trading on Nasdaq First North Premier Growth Market in Stockholm is March 28, 2022. Bawat’s shares and the warrants of series TO1 will trade under the trading symbol BAWAT.