SMOLTEK NANOTECH HOLDING AB The interest in Smoltek and the company's nanotechnology platform has increased during the year, especially in regard to the fact that the company is making significant progress and approaching commercialization within the company's leading business area Semiconductors. In order to be able to offer all shareholders and other interested parties comprehensive information ahead of the upcoming rights issue, the company has compiled answers to some of the most common questions received since the news of the proposed rights issue was announced.
Below, Smoltek's Group CEO Håkan Persson answers questions received from specific shareholders and other stakeholders in connection with the proposed rights issue. More information about the preferential rights issue can be found in the press release published on
Why do you choose to raise capital now, when there is significant turbulence in the market?
"Smoltek's operations could not have been maintained in accordance with the high pace of development required to follow our established business plan if we had not carried out this capital raise, and thus the company's shareholders would have suffered. It is very difficult to predict whether the market climate will improve during the next year, but in order to spread the risk and hopefully be able to conduct part of the capital raise on better terms, we have included warrants with a floating subscription price in the offer. This means that we divide the capital raise into two parts."
Why have you chosen to carry out a rights issue?
"We have evaluated various financing alternatives in 2022 and explored the possibilities of, among other things, being able to carry out a directed share issue. This has not been possible, largely due to external factors and the turbulent market climate, and we have therefore chosen to approach our shareholders in the form of a preferential rights issue. We have also evaluated a credit-based solution, but the terms that would apply to loans procured in the current market climate were judged to be a less attractive alternative compared to the selected transaction."
The rights issue is guaranteed to 65 percent. What is the reason for this?
"In the role of management of an organization, we must always evaluate and prepare for different scenarios. The guaranteed amount ensures that we will not have to slow down the pace of development in any of our business areas, although of course we hope that this will not become relevant due to sufficiently high interest in the offer. We have chosen to only secure the issue to 65 percent in order to keep the issue costs down, and we are also carrying out the offer with a relatively high discount. This is done to make the offer as attractive as possible for our existing shareholders."
Smoltek's two largest shareholders Gramtec and Peter Enoksson have not committed to fully subscribe in the rights issue. What is the reason for this, and what does this imply?
"The reason for this is not a lack of confidence in the company, but simply that they do not have the possibility to secure the liquid funds required to fully defend their respective shares in the company.
The commitment from our major shareholders is just as strong as before."
How will the proceeds from the rights issue be used?
"If the rights issue is fully subscribed, the proceeds are expected to make it possible for Smoltek, and our two business areas, to carry out the following activities with the aim of taking the company to a whole new technical and commercial level, and thus enable a corresponding valuation of the company.
Within our Semiconductor business area, the proceeds will be used to produce industrially manufactured engineering samples of our first product in the family of discrete capacitors; an ultra-thin decoupling capacitor for microprocessors with so-called Landside mounting for use in mobile phones and tablets. This means that we will have proven that we can manufacture our ultra-thin capacitors industrially, and that the joint development phase with
Within our Hydrogen business area, we will use part of the proceeds to continue the development of our technology by building a demonstrator, which will make it possible to calibrate the properties of the cell material, as well as to prove its performance in a PEM electrolyzer cell. We will also work to ensure that our cell material can be manufactured on a large scale. Additionally, we are working towards establishing partnerships with large commercial entities to be able to bring this first product to market.
In addition to the above, part of the proceeds will be used to evaluate a new business area within medical technology, where we already have signed an agreement for a pilot study (press release published
Smoltek currently has two business areas, Semiconductors and Hydrogen. For the semiconductor business, you have signed a joint development agreement with
"These funds have already been received. The money will be used to finance the development and industrialization of high-performance and ultra-thin capacitors, based on Smoltek's patented carbon nanotechnology."
Has the company taken the full cost of the development of the carbon growth machine (for capacitor manufacturing), how much did it cost and when is it expected to be installed and commissioned at a foundry?
"This carbon growth machine costs just over 1 MUSD (
What is the reasoning behind your efforts to utilize your technology in the hydrogen gas area?
"The hydrogen area has the potential to become a huge success in a multi-billion market that is growing at record speed, where we have the opportunity to reach a strong market position if we can prove that we offer a superior solution. Green hydrogen will play a key role when it comes to meeting the global shortage of natural gas and in the global climate transition. Major expansion is planned globally, and with our technology, hydrogen plants could potentially be much smaller and cost half or even less to build. We are currently the only one in the market that can enable this. We are now designing a scalable production process, and at the same time we want to demonstrate to potential customers that our new cell material actually offers the performance and lifespan that we promise to deliver."
Can you describe your current collaboration partners in this business area?
"We are collaborating with several international research groups as well as possible suppliers of input materials and production equipment. Furthermore, discussions are held with potential customers regarding the evaluation of our technology in order to initiate joint development projects."
What is your view on future financing alternatives, where you do not approach existing shareholders?
"We look forward to increasingly using collaboration partners and strategic investors who help us with the industrialization, commercialization and scaling up of our production capacity, as well as the financing of these activities. This can be done either per market segment (as in the case of
For those who want to learn more about Smoltek's future potential, the press release published on
For further information:
Håkan Persson, CEO of
E-mail: hakan.persson@smoltek.com
Phone: +46 760 52 00 53
Website: www.smoltek.com/investors
Smoltek develops process technology and concepts for applications based on carbon nanotechnology to solve advanced materials engineering problems in several industrial sectors. The company protects its unique technology through an extensive and expanding patent portfolio consisting of around 100 applied for patents, of which today 76 have been granted. Smoltek's share is listed on the
https://news.cision.com/smoltek-nanotech-holding-ab/r/smoltek-s-ceo-hakan-persson-answers-questions-regarding-the-proposed-rights-issue,c3640286
https://mb.cision.com/Main/16786/3640286/1632939.pdf
(c) 2022 Cision. All rights reserved., source
