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It appears in an announcement on the company’s stock exchange on Wednesday afternoon, less than an hour after the stock became the most traded today on the Oslo Stock Exchange.
Rec Silicon, a silicon producer controlled by Kjell Inge Røkke, has seen a sharp rise in recent days on the Oslo Stock Exchange, and now warns that they will raise up to 1 billion crowns in new capital in a new private placement.
Kjell Inge Røkke’s Aker Capital guarantees NOK 300 million on the share issue, and DNB Asset Manager contributes NOK 150 million.
The new capital the company needs to expand its Butte and Moses Lake operations, as well as for general business purposes, according to a stock exchange announcement Wednesday afternoon.
The company also writes in the announcement that it intends to complete the issuance period tomorrow, Thursday at 0800 hours before the opening of the stock market.
Rec Silicon’s share has nearly tripled since the beginning of October. On Wednesday, REC’s share was trading at NOK 11.90. The market value of the company is 3,200 million.
Arctic and Pareto act as facilitators of the problem.
Cooperation agreement
On Tuesday it was announced that the silicon manufacturer has entered into agreements with Violet Power and Group14 Technologies. So far this year, Rec Silicon’s share has risen more than 300 percent, of which 216 percent in the last three weeks.
The agreement with Group14 Technologies is based on the development of a full-scale production facility at Rec’s current facility in Moses Lake. Here, they hope to produce 12,000 tons of silicon products annually for battery use in 2023.
The new shares will be issued at a price of NOK 10.8 each, a small discount from the closing price of the share on the Oslo Stock Exchange, which was NOK 11.38.
Gold investment for Røkke
In December last year, it emerged that Jens Ulltveit-Moe had sold his 64.2 million shares in Rec Silicon to Røkkes Aker Capital for a sum of NOK 85 million. The same record is currently above 430 percent.
After the stock exchange closed on Wednesday, Aker Capital’s stake was worth more than NOK 730 million.
Other shareholders with large stakes in Rec Silicon include Ketil Skorstad through Tigerstaden as and Jakob Hatteland.
On Wednesday morning, it was announced that Rec Silicon Group partner 14 Technologies also plans to raise capital to finance the Moses Lake facility.
Loss in the second quarter
The company’s report for the second quarter of the year showed losses of NOK 368 million and write-offs in the hundreds of millions. Net debt had also increased to NOK 1.6 billion.
– I am satisfied with the financial and operating results of our semiconductor segment at the Butte factory despite corona challenges. Delays in introducing the Phase 1 trade agreement with China continue to currently delay the restart of the Moses Lake factory, Rec CEO Tore Torvund said in a stock exchange announcement regarding the results.
According to the company itself, the miserable numbers were the result of low demand due to the crisis in the crown, which in turn had led to increased liquidity risk.
Refused to meet Nordea requirements
In December last year, DN reported a NOK 150 million claim from Nordea, related to a guarantee given when the bankruptcy of the Rec Wafer subsidiary was opened in 2012.
– Following a report from the trustee of the Rec Wafer bankruptcy estate earlier this fall, Nordea has found that they will get the first part back before the bankruptcy estate is liquidated. Now Rec will do an assessment with his advisers before giving a response to the new year, said the investor who contacted Nils O. Kjerstad at Rec to DN at the time.
The quarterly report for the second quarter indicated that the company has rejected the bank’s claim and writes that the status and timing of the loan still involves uncertainty.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content may only be made with written permission or as permitted by law. For more terms, see here.
