The Extraordinary General Meeting of Shareholders of Meyer Burger Technology Ltd has approved an ordinary capital increase with planned gross proceeds of CHF 165 million 81.4 percent. A condition for the implementation of the capital increase is that gross proceeds of at least CHF 150 million are raised.
- The capital increase shall take the form of a combination of a rights offering to existing shareholders and a private placement to selected investors.
- The subscription period for the new shares is expected to begin on 14 July 2020 and end on 22 July 2020. Trading of the subscription rights on SIX Swiss Exchange is expected to begin on 14 July 2020 and to end on 20 July 2020.
- Meyer Burger Technology Ltd intends to use the funds from the capital increase to build up production capacities in Germany for technologically leading solar cells and solar modules. Production is scheduled to start in the first half of 2021 with 400 MW solar cells and 400 MW solar modules. An expansion to 5 GW is planned by 2026.
At the Extraordinary General Meeting (“EGM”) on 10 July 2020 in Thun, the shareholders of Meyer Burger Technology Ltd (“Meyer Burger” or the “Company”) approved the proposals of the Board of Directors regarding agenda item 1 with 81.4 percent of the votes, to implement an ordinary capital increase by issuing up to 1’829’977’372 new registered shares with a nominal value of CHF 0.05 per registered share, and to increase the conditional capital in Art. 3c of the Articles of Association to CHF 3’450’000 for the issuance of up to 69’000’000 registered shares by exercising conversion and/or option rights. 219’338’645 shares were represented at the AGM (including 104 shareholders on site), which corresponds to 32 percent of the issued shares of the Company.
The capital increase shall take the form of a combination of a rights offering to existing shareholders and a private placement to selected investors (private investment in public equity, so-called PIPE). A condition for the implementation of the capital increase is that gross proceeds of at least CHF 150 million are generated. The size of the private placement (“PIPE”), which has already been placed with more than 25 investors, amounts to approximately CHF 50 million. At the same time, these investors and other investors have committed themselves to ultimately secure CHF 60 million of the resulting rights issue in the amount of approximately CHF 114 million (“backstop”), which corresponds to more than one third of the total capital increase and approximately 52% of the rights issue. The subscription price for the rights issue and the PIPE is CHF 0.09. The subscription ratio for the rights issue is 13 new shares per 7 subscription rights. Based on the closing price of CHF 0.2794 on Thursday, 9 July 2020, and taking into account the subscription ratio and the “PIPE”, the theoretical ex-rights price (TERP) is CHF 0.1416 and the theoretical value of the subscription right is CHF 0.1378.
