Stockholm, 2011-11-16 18:04 CET (GLOBE NEWSWIRE) -- TrustBuddy announces new share issue and publishes information memorandum
Based on the authorization given to the Board of Directors by the Annual General Meeting on 30th of June 2011, the Board of Directors of TrustBuddy International AB (publ) (“TrustBuddy” or the “Company”) has decided to issue 15,000,000 new shares at a price of SEK 0.39 per share. The Board of Directors decision is essentially as follows:
- New share issue of a maximum 15 million shares, priced at SEK 0.39 each, directed to the Company's funding investors (i.e. the Company's P2P lenders) and others.
- The new share issue is made with deviation from the existing shareholders right to subscribe. The reason for deviation from the shareholders' right to subscribe is to expand the number of shareholders and thereby increase the possibility for increased liquidity of the trading of the shares.
- At full subscription of the new share issue, TrustBuddy will receive about SEK 5.9 million, prior to transaction costs.
Background and reasons
TrustBuddy is now offering our funding investors (i.e. our P2P lenders) and others to become owners in the Company with a limited no-loss guarantee (under certain limitations see further in the Information Memorandum in section “Limited no-loss guarantee” regarding this opportunity). This is done through a public share issue during November and December 2011, of a maximum 15 million shares, priced at SEK 0.39 each. The shares will be publicly traded at First North, Stockholm. For those who do not already have a securities or depository account, TrustBuddy has teamed up with Mangold Fondkommission who has offered to set up such deposit accounts free of charge, on which our investors can keep their shares.
Due to updated demands from First North, TrustBuddy is required to increase its number of shareholders. The reason for this is due to the large distribution of shares from 13 million shares to 262 million shares, which occurred in connection with the reverse merger between 360 Holding AB (publ) (now TrustBuddy International AB (publ)) and TrustBuddy AB on the 30th of June 2011.
TrustBuddy is fully financed and has a positive cash flow and is not dependent on new funding for its everyday operations. Still, the Board of Directors wish to combine a small private placement with a special share offer to its trusted funding investors as well as other investors, increasing brand awareness and loyalty and at the same time rewarding those who have made the success of TrustBuddy possible. The share issue is limited to maximum 15 million shares, at a price of SEK 0.39.
Summary of terms and indicative timetable, etc.
The Board of Directors decision means that Company's share capital can increase by a maximum of SEK 588,747.71 from SEK 10,312,461.87 to SEK 10,901,209.59 by the new share issue of no more than 15,000,000 shares addressed to the Company's funding investors and others. The decision means that funding investors and other investors are invited to subscribe for one (1) new share, each with a quota value of SEK 0.04 for the issue price of SEK 0.39. The minimum amount of shares to subscribe for is 16,000 shares and the maximum amount of shares to subscribe for is 64,000. Assuming full subscription of the issue, the Company will receive some SEK 5.9 million before transaction costs and the number of shares will increase from 262,738,903 to 277,738,903 shares. The dilution effect for existing shareholders who do not choose to subscribe in the issue is about 5.4 percent. The schedule is as follows:
- 17th of November – 2nd of December 2011 – Subscription period.
- 6th of December 2011 – Estimated time to publish the result of the new share issue.
- 9th of December 2011 – Estimated time to pay for subscribed shares.
- Week 51 – Estimated time when subscribers will receive the newly subscribed shares.
Publishing of information memorandum
Information memorandum and subscription forms are available at:
Mangold Fondkommission is acting as financial adviser to TrustBuddy in connection to the new share issue.
For more information, please contact:
Jens Bjarne Glasø, CEO at TrustBuddy International AB, +47 40404750
www.trustbuddy.com investorcare@trustbuddy.com Kungsgatan 10, 111 43 STOCKHOLM,
SWEDEN
About Trustbuddy International AB (publ)
Trustbuddy International AB (publ) is one of the first in the world to focus on arranging loans
and capital provision between buddies in an organised manner. The company is listed at
NASDAQ OMX First North in Stockholm. Mangold Fondkommission AB is Trustbuddy
International AB (publ):s Certified Adviser, contact number: +46 8-503 015 50.
