Dignitana: Positive Sign of Confidence

Research Note

2020-12-23

09:41

Redeye sees the news of the directed share issues as a positive sign for Dignitana. The company raises SEK 75m through this issue while getting renowned institutional investors on board. This share issue also solves the financing to grow the company at a faster pace as we advance. The share issue was done at a small discount to the market price while the dilution amounts to about 13 percent. There will be a write-off of old C3 devices during the fourth quarter. However, we see this as a sign of strength in the new DigniCap Delta and its progress during 2020. We believe that these new investors' cash infusion and entrance weigh out the dilution effect and make no change to our motivated value in our base case of SEK 15 per share.

MH

Mats Hyttinge

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