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24SevenOffice completes a directed new share issue of 5,000,000 new shares, raising proceeds of SEK 110 million

24SevenOffice Scandinavia AB: 24SevenOffice completes a directed new share issue of 5,000,000 new shares, raising proceeds of SEK 110 million

INSIDE INFORMATION: The board of directors of 24SevenOffice Scandinavia AB ("24SevenOffice" or the "Company") has, subject to the annual general meeting’s subsequent approval, and in accordance with the Company’s press release earlier today, resolved on and carried out a new share issue of 5,000,000 shares at a subscription price of SEK 22 per share (the "Directed New Share Issue"). The Directed New Share Issue was substantially over-subscribed with large interest from institutional investors in the Nordics, Germany, UK and US. The Directed New Share Issue was, among others, subscribed for by the fund TIN Ny Teknik, Swedbank Robur Ny Teknik, Adrigo Small & Midcap, Joh. Berenberg Gossler & Co and Seven Canyons Advisors. Through the Directed New Share Issue, 24SevenOffice will receive proceeds amounting to SEK 110 million.

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The board of directors of 24SevenOffice has, subject to the annual general meeting’s subsequent approval, and as communicated in the Company’s press release earlier today, resolved on and carried out a directed new share issue of 5,000,000 shares to institutional investors.

The subscription price in the Directed New Share Issue was set to SEK 22 and has been determined through a so called bookbuilding procedure carried out by the Company’s financial advisor Pareto Securities AB ("Pareto Securities"), why it is the board of directors’ assessment that the subscription price is in accordance with market conditions. The subscription price in the Directed New Share Issue constitutes a discount of approximately 5 percent compared to the closing price on Spotlight Stock Market on May 27, 2020. Through the Directed New Share Issue 24SevenOffice will receive SEK 110 million before deduction of transaction costs.

The reasons for the deviation from the shareholders’ preferential rights is to diversify the shareholder base among Swedish and international institutional investors and at the same time raise capital in a time efficient manner. The Company intends to use the proceeds from the Directed New Share Issue to accelerate growth initiatives, including M&A opportunities, and for general corporate purposes.

The Directed New Share Issue entails a dilution of approximately 8 percent of the number of shares and votes in the Company. Through the Directed New Share Issue, the number of outstanding shares and votes will increase by 5,000,000 from 55,234,436 to 60,234,436. The share capital will increase by SEK 500,000.00, from SEK 5,523,433.60 to SEK 6,023,443.60.

The Company’s principal owner, R-Venture, who currently holds approximately 57 percent of the shares in the Company, has committed to vote for an approval of the board of directors’ resolution at the annual general meeting. In addition, the fund TIN Ny Teknik and Swedbank Robur Ny Teknik support the proposal and has expressed their intention to vote in favour of the board of directors’ decision at the annual general meeting.

In connection with the Directed New Share Issue, the Company has undertaken, with customary exceptions, not to issue additional shares for a period of 90 calendar days after the announcement of the outcome of the Directed New Share Issue. Board members and persons of the management holding shares have undertaken not to sell any shares in 24SevenOffice for a period of 90 calendar days after the announcement of the outcome of the Directed New Share Issue, with customary exceptions.

In order to facilitate the delivery of shares to the investors in the Directed New Share Issue on June 1, 2020, a group of existing shareholders will lend 5,000,000 shares to Pareto Securities. The shares will be returned after the Directed New Share Issue has been registered with the Swedish Companies Registration Office (Sw. Bolagsverket).

Notice to the annual general meeting will be announced separately no later than on June 1, 2020 and will include the board of directors’ complete proposal regarding the Directed New Share Issue.

Advisers

Pareto Securities is acting as Sole Manager and Bookrunner and Baker & McKenzie Advokatbyrå KB is legal adviser in connection with the Directed New Share Issue.

Responsible person

This information is such information as 24SevenOffice is obliged to disclose under the EU Market Abuse Regulation 596/2014. The information was provided by the contact person below for publication at the point in time specified by 24SevenOffice’s news distributer Cision at the publication of this press release. For further information, please contact the person set out below.

For more information, please contact:

Ståle Risa, CEO

Tel: +46 70-023 63 03

Email: str@24sevenoffice.com

Karl-Anders Grønland, Chairman

Tel: +47 464 43 307

Email: kag@storlokken.no

24SevenOffice in brief

24SevenOffice delivers cloud-based business systems for small and medium-sized enterprises in the Nordics. The system, which was launched in 2002, is today used by 53,000 companies in the Nordics, with PwC and KPMG as accounting partners. The business system is based on modules, sold as stand-alone modules or complete solutions. 24SevenOffice aims to become a leading provider within ERP systems in the Nordics. For more information, visit www.24sevenoffice.com