Crunchfish's Rights Issue: A Strategic Move in a Competitive Landscape

November 10, 2024, 5:39 pm
Deep Pharma Intelligence
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Crunchfish AB is making waves in the financial waters with its latest rights issue. The company, known for its innovative technology in offline payments, is set to raise approximately SEK 57 million. This move comes at a time when the tech landscape is as competitive as ever. The subscription period began on November 6, 2024, and will run until November 20, 2024.

The rights issue is not just a financial maneuver; it’s a lifeline. Crunchfish has secured commitments covering about 45% of the issue from existing shareholders and external investors. This backing is crucial. It signals confidence in the company’s future and its potential to navigate the choppy waters of the tech industry.

On November 11, 2024, Crunchfish will host a webinar. This event is designed to inform potential investors about the rights issue. CEO Joachim Samuelsson will lead the discussion, providing insights into the company’s current revenue opportunities. The chat function will allow participants to engage directly, making it an interactive experience.

The terms of the rights issue are straightforward. Shareholders on record as of November 4, 2024, will have preferential rights to subscribe. For every existing share, one unit right is granted. Two unit rights allow the purchase of one unit. Each unit consists of two newly issued shares and two warrants. The subscription price is set at SEK 2.90 per unit, translating to SEK 1.45 per share.

The timeline is tight. Trading in unit rights will occur from November 6 to November 15, 2024. After that, the trading of Paid Subscribed Units (BTU) will continue until December 6, 2024. The outcome of the rights issue is expected to be published by November 22, 2024.

Warrants are a sweetener in this deal. Series TO 10 and TO 11 will allow investors to subscribe for new shares at a future date, providing an additional incentive. The potential for future gains makes this rights issue attractive.

Crunchfish has also secured significant subscription commitments. Corespring, the company’s second-largest shareholder, has committed approximately SEK 5.5 million. This commitment is particularly interesting as it will be fulfilled through set-off against a loan provided to Crunchfish. This arrangement highlights the interconnectedness of financial strategies within the company.

External investors have guaranteed an additional SEK 20.4 million. This combined coverage of SEK 26 million is a reassuring cushion for the company. It indicates a robust safety net as Crunchfish embarks on this financial journey.

The company’s prospects are bolstered by its innovative technology. Crunchfish specializes in a device-agnostic platform for offline payments. This technology is increasingly relevant in a world that values convenience and security. The ability to process payments without constant internet access is a game-changer.

Crunchfish has been listed on Nasdaq First North Growth Market since 2016. Its headquarters in Malmö, Sweden, and a subsidiary in India position it well for growth. The company’s focus on deep tech places it at the forefront of the digital payment revolution.

The financial advisors for this rights issue are Västra Hamnen Corporate Finance AB, while Setterwalls Advokatbyrå AB provides legal counsel. Nordic Issuing AB acts as the issuing agent. This team of experts is crucial in navigating the complexities of the rights issue.

However, potential investors should tread carefully. The information provided does not constitute an offer to acquire shares. The rights issue is limited to Sweden, and no public offering will be made in other jurisdictions. This restriction is vital for compliance with international securities laws.

Crunchfish’s rights issue is a strategic move. It aims to bolster its financial standing while expanding its market reach. The tech landscape is evolving rapidly, and companies must adapt or risk being left behind.

In conclusion, Crunchfish is taking a bold step forward. The rights issue is not just about raising capital; it’s about positioning itself for future growth. With a solid backing from shareholders and a clear strategy, Crunchfish is poised to navigate the challenges ahead. Investors should keep a close eye on this company as it continues to innovate and expand in the competitive tech arena.

As the subscription period unfolds, the market will watch closely. Will Crunchfish seize the opportunity? Only time will tell. But one thing is certain: the company is not standing still. It’s moving forward, ready to tackle whatever comes next.