So far, it looks like Meyer Burger’s recapitalization is headed in the right direction, as just a few days after its Board of Directors approved the final terms of the plan, it has already secured commitments of CHF 38.2 million from three investors. Of course, there is still a long where to go before it reaches the target of CHF 164.5 million, but it is on the right track.
The most recent announcement is for the purchase of 16 million unsubscribed shares at CHF 0.36 per share, by Swiss industrial and investment holding company Brustorm SA. This is a total investment of CHF 5.76 million from Brustorm, and represents its first investment in Meyer Burger. This means that the company now has commitments from investors for an aggregate amount of CHF 38.2 million.
The company announced a major restructuring program earlier in the year, and a recapitalization program has been a focal part of it. Meyer Burger’s Board of Directors approved the final terms of the recapitalization just last week, at an Extraordinary Shareholders’ Meeting.
As part of the recapitalization, Meyer Burger will issue 456,851,800 new registered shares, with the goal of accumulating CHF 164.5 million in capital. The company has also sought to extend its existing bank credit facilities, which has been agreed in principle, provided that the company has raise at least CHF 16 million in new capital. With over CHF 38 million already committed, the company is well on its way to achieving this.