Paynova: Capital Injection to Accelerate Growth

Today, Paynova announced that it will make a fully guaranteed rights issue of SEK 49.7m and a directed share issue of SEK 10m to two major shareholders (Riber & Søn and RoosGruppen). The share issue will significantly improve Paynova´s financial position and help the company to accelerate growth. We believe the company has a great opportunity with its Pay Later solution and expanded to several large European markets in November. We believe that company will enter additional markets in the near term, and the capital injection is vital to maintain the operational momentum.

The subscription price of the share issue is SEK 15 per share, which is above the current trading price. The rights issue is also fully guaranteed by the major shareholders, and we believe this is a very strong signal that the major shareholders have high conviction in the Paynova case.

The share issue will lead to a significant dilution, but we see a very positive signal value of the premium subscription price, and the improved financials will help accelerate growth.

We leave our fair value of Paynova unchanged with a base case of SEK 30 and a fair value range of SEK 10-50.