OXE Marine: De-Risking the Case

As we highlighted in our recent research, OXE had a challenging cash position for H2’20. We look favorable upon the newly raised SEK 66m (63 post-costs) as it reduces the near-term risk in the case and allows OXE to focus on accelerating its growth.  The capital raise was set at SEK 2.0 per share and implicates a dilution of 20%. We are encouraged by the SEK 10m investment from Polo Logistics, a subsidiary to OXE’s manufacturing partner Outdoor Network Manufacturing (ONM). Their investment strengthens OXE’s position in the US, amongst US distributors and potential customers.

The capital raise does not affect our current base case valuation or our forecasts at this point. For further reading, view our last research note.