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It is featured in an announcement on the company’s stock exchange Wednesday afternoon. There has been a lot of interest in the company, which on Wednesday was the most listed on the Oslo Stock Exchange.
Rec Silicon, a silicon producer controlled by Kjell Inge Røkke through its Aker Group and the wholly owned investment company Aker Capital. The stock has seen a sharp rise on the Oslo Stock Exchange in recent days and, following the stock market close on Wednesday, Rec Silicon announced that it will raise up to 1 billion kronor in new capital by issuing shares.
Kjell Inge Røkkes Aker Capital guarantees NOK 300 million on the capital increase, while DNB-fond guarantees NOK 150 million.
The company needs fresh capital to expand its operations at its Butte and Moses Lake facilities, as well as for general corporate purposes, according to a stock exchange announcement Wednesday afternoon.
The company also writes in the announcement that it intends to place the capital raising among investors at 08:00 on Thursday morning. The capital increase is divided into two parts, as the current share issuance authorization of the shareholders at the previous general meeting is not large enough. Therefore, a new general meeting is scheduled in November to approve the second part of the capital increase.
The Rec Silicon board also writes in the report that it will consider conducting a so-called repair issue. It is a capital increase where those of the current shareholders of the company who do not have the opportunity to subscribe to the directed capital increase, can subscribe to maintain all or part of their shareholding in the company.
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.
The brokerages Arctic Securities and Pareto Securities are the facilitators of the capital increase, which is done as a so-called book building, where the brokerages weld interest among potential investors and then allocate the shares.
The subscription price is often determined in this part of the process as well, but Rec Silicon has already decided that the subscription price will be NOK 10.80, slightly below Wednesday’s closing price on the Oslo Stock Exchange of NOK. 11.38.
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.
Rec writes in the report that they have now secured the liquidity to prepare a decision and finance the startup of the Moses Lake factory through the second half of 2021.
“It is the goal of such a start-up in 2022 after continued positive development in both the solar and battery markets, where the company believes it is well positioned to become a leading US producer of silane and super-pure silicon,” states the report.
Gold investment for Røkke
In December last year, it emerged that investor 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 a deficit of NOK 368 million, and amortizations of hundreds of millions. Net debt had also increased to NOK 1.6 billion.
– I am satisfied with the financial and operational results of our semiconductor business 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, the miserable figures were the result of low demand due to the crown crisis, which in turn had led to increased liquidity risk. (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.
