Clavister carries out issues of up to SEK 234 million through a directed issue and a rights issue with an overallotment option
Clavister carries out new issues of shares of approximately SEK 234 million by way of a fully guaranteed rights issue amounting to approximately SEK 149.7 million, an oversubscription option of approximately SEK 30 million and a directed issue of approximately SEK 54 million to institutional and qualified investors
Background and motives
Up until 2017, the Company was mainly focused on research and development of the technical platform that today forms the basis of Clavister's offering. As of 2017, the Company is on a commercial growth journey with more focus on developing its sales and marketing. The result of this change can be seen in e.g. the increased order intake, which has doubled since mid-2017.
Clavister's current customer base includes well-known brands such as Nokia, Ericsson, IWG, BAE Systems, NTTBP and E.ON. However, no single end customer or reseller today accounts for more than 15% of the total sales i.e. the Company has a healthy mix of large customers and thousands of smaller customers. Customer loyalty is high, illustrated by the fact that more than 90% of all customer contracts have been renewed during the last three years.
A more well-defined focus on the development of sales and marketing means that the Company now attracts larger customers and projects, even though the total customer base is still diversified. During June 2020, the Company entered into an agreement with BAE Systems stipulating that Clavister's products will be used in BAE Systems' vehicles in several end customer projects. Another example is the Company's agreement with Nokia, where Clavister's technology is sold under the Nokia brand to mobile operators worldwide.
Clavister now intends to further exploit this trend which the Company is experiencing with new types of customers and larger projects, to increase sales growth. Through sales and market development combined with increased working capital, the Company intends to carry out a verticalization and specialization around selected customer segments.
The proceeds from the Rights Issue is intended to be allocated as set out below, and, if not all parts can be carried out, according to the following prioritization:
1. Development of sales and marketing including increased working capital (approximately 67 percent of the proceeds)
• Implementation of verticalization for specific customer groups and associable development of the technology platform.
• Working capital to enable the implementation of larger customer projects.
2. Strengthen the balance sheet (approximately 33 percent of the proceeds)
• Reduction of relative debt levels to reduce operational and financial risks.
To enable further capital injections, the board of directors may, if the Rights Issue is oversubscribed for, decide on the Oversubscription Option, which will provide the Company with a maximum of approximately another SEK 30 million in proceeds. The proceeds from the Oversubscription Option and the the Directed Issue are intended to further support the above-mentioned measures.
Clavister has received subscription undertakings of approximately SEK 22.3 million and guarantee commitments of approximately SEK 130.5 million, which together cover the Rights Issue. The subscription period is between 3 November - 17 November 2020