Enviro‘s deal with Michelin has lifted its funds to 75M Swedish Krona.
Enviro Strengthens its Financial Position
Scandinavian Enviro Systems AB (Enviro) has now completed the directed share issue to Michelin that was part of the letter of intent announced on April 15 regarding a long-term strategic partnership between the two companies. Following the share issue, Enviro’s cash and cash equivalents amount to approximately 75 M Swedish Krona (SEK).
Michelin’s investment in Enviro was made by way of a directed share issue (private placement) of a total of 116,165,223 shares at a subscription price of SEK 0.28 per share, whereby, the share capital was increased by SEK 4,646,608.92. In total, the share issue generated proceeds of approximately MSEK 32.5 before transaction costs.
Following registration of the share issue by the Swedish Companies Registration Office, the share capital amounts to SEK 23,233,044.60 and the number of shares to 580,826,115, of which 20% is held by Michelin. The issue entails a dilution effect of 20% in terms of voting rights.
The French tyre manufacturer Michelin is one of the world’s leading tyre manufacturers, and the strategic partnership provides Enviro with significantly improved conditions for the global establishment of recycling plants based on Enviro’s patented and leading technology for recycling of end-of-life tyres (ELT).
A final agreement for a strategic partnership following the letter of intent is, as previously communicated, expected to be completed by mid-2020.