Paynova: Share Issue at a Premium - Redeye

Redeye has a positive view of the directed share issue as it will lower the financial risk and help Paynova focus on the operational execution. The share issue was conducted at an 11% premium compared to the latest closing price and is directed to several private investors, including the two largest shareholders.

Today, Paynova completed a directed share issue of 1 033 339 shares at a share price of SEK 15.0, corresponding to a premium of 11% compared to the closing price on the 21 of August. The premium is highlighting the interest in the company and the case. The share issue adds SEK 15m to the company, which lowers the financial risk. We also believe that increased financial stability will be important during the upcoming expansion and help the company focus on operational execution. The share issue is directed to several private investors and includes the two largest owners, RoosGruppen and Rieber&Son.

The share issue is conducted well under our Base Case of SEK 20, but the lower financial risk and increased operational focus mitigates the dilution effect. We also notice that the Chairman, Daniel Ekberger, has sold 100k shares to RoosGruppen in conjunction with the share issue. The Chairman´s transaction has no impact on our view of the case as he remains as one of the largest owners.

As mentioned in our latest comment on the Q2 report, we will follow up on the report with an update of the case.

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