The Private Placement raised gross proceeds of NOK 250 million to the Company through 1,250,000 new shares (the “Primary Offering”) and NOK 108 million to certain existing shareholders through the sale of 540,924 existing shares (the “Secondary Offering”, and together with Primary Offering, the “Private Placement”).
The Private Placement attracted strong interest from Norwegian, Nordic and international high-quality institutional investors and was multiple times oversubscribed. Three cornerstone investors were allocated shares for NOK 165 million: (i) BNP Paribas Energy Transition Fund NOK 65 million; (ii) DNB Asset Management NOK 60 million; and (iii) Andenæsgruppen NOK 40 million.
The Company intends to use the net proceeds from the Primary Offering to execute the Company’s business plan to reach cash flow break-even levels in geographies where Otovo currently has operations and a potential cash out of the ISWT earn out 2 as well as general corporate purposes.
Following the Private Placement, the Company will have 10,382,444 shares outstanding.
The Company and certain of the large shareholders in the Company as well as members of the Company's management and board have entered into customary lock-up arrangements with the Manager that will restrict, subject to certain exceptions, their ability to, without the prior written consent of the Manager, issue, sell or dispose of shares, as applicable, for a period of six months after the commencement of trading in the shares on Euronext Growth Oslo.
Allocation to investors will be communicated on 12 February 2021. The Private Placement will be settled by the Manager on a delivery-versus-payment basis on or about 19 February 2021 following the registration of the new share capital in the Norwegian Registry of Business Enterprises and the issuance of the new shares in VPS. The delivery-versus-payment settlement in the Private Placement is facilitated by a pre-funding agreement between the Company and the Manager.
Otovo has applied for, and will, subject to the necessary approvals from the Oslo Stock Exchange, list the shares of the Company on Euronext Growth Oslo (the “Listing”). The first day of trading on Euronext Growth Oslo is expected to be on or about 19 February 2021.
