”The purpose of this rights issue is to strengthen Componenta's financial situation, which in turn will open up the possibility to start negotiations with creditors for paying off in advance the restructuring debt of the parent company. This is clearly a step forward for us, and will give us credibility and support the decision-making of our customers, and will thus have a positive effect on us executing our growth strategy."
President and CEO
Componenta Corporation (“Componenta” or “Company”) announced on 5 October 2020 plans for a rights issue. Based on authorization granted by the Extraordinary General Meeting of Componenta Corporation held on 29 October 2020, Componenta Corporation’s Board of Directors passed on 13 November 2020 a resolution on rights issue in which the Company offered up to 237,269,224 new shares of the Company (“New Shares”) primarily to the existing shareholders of the Company in accordance with the pre-emptive right of shareholders and secondarily to shareholders and other investors (the “Offering”). The subscription price for each New Share was EUR 0.04 (“Subscription Price”).
With the rights issue, the company intended to receive approximately MEUR 9.5 gross proceeds. The proceeds of the rights issue are meant to be used to strengthen the company’s financial position. In addition, the company intends to start negotiations with creditors for paying off in advance the restructuring debt of the parent company early in 2021.
Below you can find the details related to the rights issue.
A shareholder who is on the Record Date of the Offering, 17 November 2020, registered in the Company’s shareholders’ register maintained by Euroclear Finland, or, in respect of nominee-registered existing Shares, a shareholder on whose behalf the shares have been registered in the shareholders’ register on the Record Date, will automatically receive one (1) freely transferable subscription right as a book-entry for every one (1) existing Shares owned on the Record Date. The subscription price for each Offer Share is EUR 0.04.