Hexagon Composites raises $57.22 mn in gross proceeds

DNB Markets acted as the global coordinator and joint bookrunner and Carnegie AS acted as joint bookrunner in the bookbuilding process. The company’s largest shareholder Mitsui & Co Ltd, who is represented on the company’s board of directors, has been allocated 4,167,000 shares and Flakk Composites AS, controlled by Knut Flakk, has been allocated 337,837 shares in the private placement, said Hexagon Composites in a press release.

The new shares allocated in the private placement will be settled through a delivery versus payment transaction on a regular T+2 basis by delivery of existing and unencumbered shares in the company that are already listed on the Oslo Stock Exchange pursuant to a share lending agreement between DNB Markets, the company and Flakk Composites AS. The shares delivered to the subscribers will thus be tradable upon delivery. Following registration of the new share capital pertaining to the private placement, the company will have 183,290,648 shares outstanding, each with a par value of NOK 0.10 ($ 0.012).

The net proceeds of the private placement will be used for continued investment in growth opportunities across all of Hexagon’s business areas, hereunder hydrogen opportunities and new market development, said the company in a press release.

The board is of the opinion that the private placement complies with the equal treatment obligations under the Norwegian Securities Trading Act and Oslo Børs’ circular no 2/2014 in particular due to the fact that in the current market, a private placement had a larger possibility of success compared to a rights issue and, therefore, gives Hexagon Composites timely access to the new capital at low risk; and the cost of raising capital is assumed to be lower than in a rights issue since the discount is likely to be lower and subscription guarantees are avoided. On this basis and based on an assessment of the current equity markets, the company’s board of directors has considered the private placement to be in the common interest of the company and its shareholders. As a consequence of the private placement structure, the shareholders’ preferential rights were deviated from. (PC)

Fibre2Fashion News Desk – India