The Board of Danionics A/S has decided to complete a capital increase in the
Company by issuing 1.395.056 new shares of DKK 1 (nom. DKK 1.395.056) as a
directed issue by payment in cash.
The capital increase of 9,99% of the share capital is made pursuant to Article
18 of Danionics' articles of association. The share issue is without preemptive
rights. The subscription rate is DKK 3,60 based upon “all trades” in the share
on NASDAQ OMX Copenhagen in Q1 2010, contributing with a gross proceeds of DKK
5.022.202. The transaction costs are estimated to DKK 200.000.
The capital increase is a directed issue to Surplus Enterprise Limited, Hong
Kong (a company owned by GP Batteries Group, Hong Kong).
The proceeds from the capital increase will be injected in the Joint Venture
Company Danionics Asia Ltd. as a loan and GP Batteries Group will on this basis
also inject a similar amount. The total amount will secure sufficient liquidity
to continue the operations in the Joint Venture for the next 6 months.
Danionics A/S has as mentioned earlier not contributed with cash to the Joint
Venture the last 12 months but by this solution it has been possible to
maintain Danionics 50% ownership of the Joint Venture for further 6 months.
The Board of Danionics A/S will follow the development in the Joint Venture
closely and prepare for a further capital increase if possible before the end
of the 6 month period. At the same time the Board will investigate other
possibilities for further capital to maintain the 50/50 ownership.
The new shares will rank pari passu in all respect with existing Danionics
shares.
The new shares will be listed on NASDAQ OMX Copenhagen in the existing ISIN
code at the date of the registration of the capital increase with the Danish
Commerce and Companies Agency. Registration will take place soonest possible.
Yours sincerely,
Danionics A/S
The Board of Directors
For additional information, please contact:
Henning O. Jensen, Chief Executive Officer, tel. +45 70 23 81 30
