Scout shareholders will vote on a proposal next month

Scout shareholders will vote on a proposal next month

Scout said that it would conduct a share issue in June in order to save the business, after it discovered a 17 million euro commitment in its finances.

The commitment will have a negative effect on profit and loss in the third quarter of this year and will affect cash flow.

As a result of the new cost, Scout leadership took drastic action to save the business, including laying off many employees between its offices in Bergen in Norway and Lviv in Ukraine.

Scout said it would issue 202.7 million new shares, diluting existing shares by 90%, as well as the layoffs.

More information about the share issue has been revealed by the board. Nine more shares in the business will be offered to each shareholder, at a price of SEK0.50 per share.

Scout said that the issue was fully guaranteed, as existing shareholders Topline Capital Partners, Scobie Ward, Novobis, Knutsson, and Erlinghundra have pledged to subscribe for a combined SEK46m worth of shares.

The shares can not be sold without Scout’s permission for nine months.

If enough smaller shareholders don’t purchase, Topline Capital Partners’ stake in the business could go up to 30%. A mandatory offer to acquire a majority stake in the business would typically be triggered by this. The business agreed to sell enough shares to bring it under the threshold in order to avoid this.

The issue must be approved by shareholders because of share number maximums in the articles of association. The vote for this approval will take place on 1 September.

Summary:

Scout said it would conduct a share issue in June in order to save the business, after it discovered a 17 million commitment in its finances. The commitment will have a negative effect on cash flow and profit in the third quarter of this year.