Net Insight has secured SEK230m via a directed placement of new shares to the National Swedish Pension Fund, Fourth Fund board, Brummer & Partner's hedge fund, Zenit, and SPP Asset Management AB. The hedge fund Zenit, along with the National Swedish Pension Fund, Fourth Fund board, has participated with SEK100m each. SPP Asset Management has participated with SEK30m. The new issue comprises at most 566,502 series B shares at an issue price of SEK406. The issue price has been calculated from the average, volume weighted closing price over the last thirty trading days. The issue price reflects a three percent discount compared with the last price paid on the 18th January 2000.
The company's CEO, Bengt Olsson said in a comment to the board's decision:
"- Net Insight's development has gone faster than we expected in connection with the new issue of autumn, 1999. The pace of development of new international markets has increased, while at the same time interest for the company's technology and products has strengthened in all market segments. Further financial resources are now required to secure the necessary investments in the development of new technology and marketing."
"- The fact that three well-regarded institutions have chosen to invest in Net Insight is very positive. The company's institutional ownership increases to around 20 percent of capital and after the now subscribed issue, our liquid funds amount to approximately SEK350m."
The total number of shares outstanding in the company after the new issue comes to 7,638,418 of which 720.000 shares are series A and 6.918.418 shares are series B. The total dilution, before exercise of the company's warrants programme, is 7.4 percent by number of shares and 4.0 percent by number of votes. The comparable dilution, assuming the company's warrants programme was fully exercised, is around 6.6 percent of shares and around 3.7 percent of votes.