Redeye Today: Heliospectra announces fully secured rights issue of SEK 91 million

Important information: Redeye is acting financial advisor to Heliospectra in the announced rights issue with execution during Nov - Dec 2016. The remuneration for producing research content on Heliospectra is a fixed amount agreed in advance, regardless of the conclusions in the report and the outcome in the rights issue. The analyst team at Redeye is working entirely independent from the corporate finance team that is engaged in the financial advisory service to Heliospectra. ________________________________________________________________ Heliospectra’s Board of Directors proposes a 3:4 rights issue of SEK 91 million and an overallotment option of SEK 20 million.

The rights issue is fully secured through subscription and underwriting commitments from Heliospectra’s three major shareholders. The share is down some 20 percent on today’s announcement and trades around SEK 7. 7, well above the subscription price in the upcoming rights issue.

We have highlighted the need for additional financing several times and today’s announcement comes as no big surprise. The continued strong support from Heliospectra’s major shareholders, especially Gösta Welandson, is positive. We believe the price in the rights issue is fair - SEK 6.

5 is almost right in the middle of our base case and bear case. Furthermore, it is good to see that Heliospectra solves its financing situation as it has been a source of uncertainty. A strengthened balance sheet will make Heliospectra a more attractive investment, business partner, supplier and employer.