C-RAD AB intends to undertake a directed new share issue

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Press release 2020-02-19

C-RAD AB intends to undertake a directed new share issue

C-RAD (“C-RAD” or the “Company”) today announces its intention to carry out a directed new share issue of up to 2,500,000 shares to Swedish and international institutional investors (the "Directed New Share Issue").

The transaction in brief

The Directed New Share Issue is intended to be carried out with deviation from the shareholders' preferential rights and with the support of the authorization granted by the annual general meeting held on 8 May 2019. C-RAD has engaged Pareto Securities AB (“Pareto Securities”) to investigate the conditions for a new issue of shares through a so-called accelerated bookbuilding procedure, which will commence immediately. The subscription price and allocation of the new shares will be determined prior to commencement of trading on Nasdaq Stockholm on 20 February 2020. The Company will announce the outcome of the Directed New Share Issue in a press release when the bookbuilding procedure is closed.

The bookbuilding procedure, determination of the subscription price and allocation may, at the discretion of the Company or Pareto Securities, close earlier or later and may be cancelled at any time and consequently, the Company may refrain from completing the Directed New Share Issue.

Background and use of proceeds

The rationale for carrying out the Directed New Share Issue is primarily to support the Company’s growth, which includes investments in expanding C-RAD’s product portfolio to increase efficiency and safety within radiation therapy.

The reasons for the deviation from the shareholders’ preferential rights are mainly to diversify the shareholder base in the Company among Swedish and international institutional investors and at the same time take advantage of the opportunity to raise capital in a time- and cost-efficient manner.

In connection with the Directed New Share Issue, the Company has undertaken, with customary exceptions, not to issue additional shares for a period of 180 calendar days after the announcement of the outcome of the Directed New Share Issue. Board members and persons of the management holding shares and/or warrants have undertaken not to sell any shares in C-RAD for a period of 90 calendar days after the announcement of the outcome of the Directed New Share Issue, with customary exceptions.