The Board of Directors of GomSpace Group intends to carry out a rights issue

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9/28/2018


The Board of Directors of GomSpace Group intends to carry out a rights issue of indicatively SEK 300 million to support the new long term ambitions
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, HONGKONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA, SWITZERLAND OR ANY OTHER STATE OR JURISDICTION IN WHICH SUCH MEASURE WOULD BE UNLAWFUL OR REQUIRE ANY OTHER ACTIONS TO BE TAKEN IN ADDITION TO THOSE REQUIRED BY SWEDISH LAW.

A review of the strategy and business plan, initiated by the Board of Directors, has resulted in an upward revision of the long term ambitions for 2023. With the updated business plan and current outlook the review also concluded that with a SEK 300 million rights issue before issue costs, the company is expected to be fully financed until the company is expected to be cash flow positive. The Board of Directors of GomSpace Group AB (publ) (“GomSpace”) therefore seeks authorisation to resolve on a rights issue of indicatively SEK 300 million by an extraordinary general meeting on October 16, 2018. The SEK 300 million rights issue will replace the SEK 300 million optional agreement with the European Select Growth Opportunities Fund that has not been utilised. The intended rights issue is supported by Hansen & Langeland ApS, NOVI Innovation A/S, Longbus Holding ApS (the CEO) and the Chairman of the Board who all have agreed to vote in favour of the authorisation.
The strong growth since the IPO in June 2016, with a CAGR[1] of 79 percent (91 percent without elimination), has accelerated investments in production capacity, project management and product development. The opportunities for migrating space technology from high cost solutions to low cost solutions keep unfolding and GomSpace is currently finalizing the development of a significant number of new products and has prepared for scaling up and industrializing the production. Significant scale benefits are expected to be achieved in the transition phase, moving from single satellite production, to industrialized assembly of larger quantities.

A strategy and business plan review, initiated by the Board of Directors, has been conducted in order to fully grasp the underlying market potential and newly identified application areas and solutions for GomSpace’s products. The review resulted in an upward revision of the long term ambitions for 2023 and a defined capital need until the company is expected to be cash flow positive. In parallel, different financing solutions have been evaluated. Following the review a rights issue is now deemed by the Board of Directors as the most favourable solution for the shareholders and with the updated business plan and current outlook, the company is expected to be fully financed with a SEK 300 million rights issue before issue costs until the company is expected to be cash flow positive. On that basis the Board of Directors proposes that the extraordinary general meeting resolves on an authorisation for the Board of Directors to resolve upon issuance of new shares. Following a successful rights issue GomSpace intends to terminate the SEK 300 million optional agreement with the European Select Growth Opportunities Fund entered into in July 2018.

GomSpace’s shareholders Hansen & Langeland ApS, NOVI Innovation A/S, Longbus Holding ApS (the CEO) and the Chairman of the Board, representing approximately 23 per cent of the shares in the company, have expressed their support for the intended rights issue and have agreed to vote in favour for the authorisation of the Board of Directors at the extraordinary general meeting.

Invitation to the extraordinary general meeting on October 16, 2018 will be announced through a separate press release.

For more information, please contact:
Niels Buus (CEO)
Tel: +45 40 31 55 57
Email: nbu@gomspace.com

About GomSpace Group AB
The company’s business operations are mainly conducted through the wholly-owned Danish subsidiary, GomSpace A/S, with operational office in Aalborg, Denmark. GomSpace is a space company with a mission to be engaged in the global market for space systems and services by introducing new products, i.e. components, platforms and systems based on innovation within professional nanosatellites. The company is listed on the Nasdaq First North Premier exchange under the ticker GOMX. FNCA Sweden AB is the company’s Certified Adviser. For more information, please visit our website on www.gomspace.com.

This information is information that GomSpace is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, 9:02 a.m CET on September 28, 2018.

IMPORTANT INFORMATION

This press release is not an offer or solicitation to acquire shares in GomSpace. This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The information in this press release may not be announced, published or distributed, directly or indirectly, to the United States, Canada, Australia, Hong Kong, Japan, New Zealand, Singapore, South Africa, Switzerland, or in any other jurisdiction where the announcement, publication or distribution of the information would not comply with applicable laws and regulations.

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[1] (http://file:///H:/Dokumenter/Pressemeddelelser/GomSpace%20Group/PR%20rights%20issue/Press%20release%20-%20Announcement%20of%20rights%20issue%20-%202018.08.28%20ENG.docx#_ftnref1) Compound annual growth rate
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