C Security Systems: Partial guaranteed rights issue
Research Note
2023-02-15
15:30
Redeye comments on CSECs partially guaranteed rights issue of a total of SEK 9.4 million to repay bridging loan, marketing and sales efforts, general business purpose, and R&D.
Fredrik Reuterhäll
CSEC just announced a partial rights issue of SEK9.4mn before costs, foremost to strengthen its balance sheet. The dilution is close to 46%, and the share price immediately dropped to SEK0.0017, -43% after the announcement.
Key takeaways from the terms of the right issue:
- Existing shareholders, on the record date of March 9, 2023, have preferential rights to subscribe for units.
- For each one (1) existing share, one (1) unit right is obtained. Six (6) unit rights give the right to subscribe for one (1) unit. Each unit contains five (5) shares.
- The subscription price in the rights issue is set at SEK0.07 per unit, corresponding to SEK 0.014 per share
- Through the rights issue, the number of shares may increase to a maximum of 670,983,785 shares, from 805,180,544 shares to 1,476,164,329
Timeline
Disclosures and disclaimers