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Dignitana: Secured rights issue announced - Redeye

Redeye comments on last night’s news about a 92.3% secured rights issue of SEK19.1m before costs. The subscription price is 1.90 per share and is dependent on the subsequent approval of the EGM. We see this as a natural step as the company is trying to speed up the US expansion and repay some debt to a degree. The shares may increase by 10m from 70.47m to 80.5m. The dilution effect for shareholders not participating in the rights issue is c12.5%. In conjunction with the rights issue, a bridge loan has also been taken of SEK5m.

Redeye comments on last night’s news about a 92.3% secured rights issue of SEK19.1m before costs. The subscription price is 1.90 per share and is dependent on the subsequent approval of the EGM. We see this as a natural step as the company is trying to speed up the US expansion and repay some debt to a degree. The shares may increase by 10m from 70.47m to 80.5m. The dilution effect for shareholders not participating in the rights issue is c12.5%. In conjunction with the rights issue, a bridge loan has also been taken of SEK5m.
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