FRISQ Holding AB decides on a new share issue to secure the company’s financial position

FRISQ Holding AB (“FRISQ” or “the Company”) has in a previous press release announced its intention to decide on a new share issue. FRISQ has now secured a new share issue.
As the board of FRISQ didn’t receive a signed and binding share transfer agreement from Tempest SPV Ltd on Monday, the Board has, with the mandate of the Extraordinary General Meeting, decided on a new share issue which may provide FRISQ up to 32 million SEK. The new issue is divided into a directed issue and then a rights issue. The purpose of the new share issue is to secure the Company's financial position.
The directed issue has been closed and comprises 18 150 000 shares at the issue price of one (1) SEK per share. The issue price has been determined after negotiations with the investors in the new issue. Considering prevailing market conditions, the Board of FRISQ assesses that the issue price is market-based. The direct issue will add FRISQ approximately 18,15 million SEK before transaction costs.
During the spring, the board will carry out the second part of the new share issue in the form of a rights issue to all shareholders of approximately 13,8 million shares at the same issue price, one (1) SEK. The shareholders participating n the direct issue will not be entitle to participate in this second rights issue. Further information on the rights issue will be published during the current week, or as soon as possible.
With these new share issues, the Company is expected to have sufficient financial resources for the rest of 2022. The Board has begun to work together with the management team to adjust costs and focus the commercial work with objective that the Company will be cash flow positive by the end of 2022. This means that current revenues in the Company towards the end of 2022 shall, on average, exceed the estimated monthly costs of an average of approximately SEK 5 million. Significantly higher revenues are expected by the Company in the long term when the contracts that are intended to be entered into in 2022 have full effect. The company sees good opportunities to accelerate sales in the coming quarters, especially in Sweden.
The total number of shares issued in the directed issue and the forthcoming rights issue will total a maximum of approximately 31.9 million shares, which is covered by the authorization provided to the Board mandated by the recently held Extraordinary General Meeting. Given a subscription of a total of 31.9 million shares in the two new issues, the number of shares in the company will increase from 47,954,773 to 79,854,773. The shares issued in the directed issue and the rights issue will constitute approximately 40 percent of the shares in the Company.

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