There has been great interest in taking advantage of Advanced Soltech's offer to subscribe for newly issued preference shares. In total, new shares have been subscribed for SEK 131.5 million. The purpose of the issue prior to the planned listing of Advanced Soltech's shares on First North Growth Market is to be able to take advantage of the good business opportunities that the Company now has in China. Following the issue, Soltech will own more than 50% of Advanced Soltech and will therefore continue to consolidate the company's accounts.
The terms of the issue of preference shares have been formulated with a forthcoming listing in mind. JOOL Corporate Finance AB has acted as the Company's Corporate Finance advisor in the transaction. SIP Nordic Fondkommission AB has been the organizer and Roschier Advokatbyrå AB legal advisor.
Advanced Soltech's CEO, Max Metelius comments:
- It is very gratifying to see the great interest in investing in Advanced Soltech and we welcome our new shareholders on our continued growth journey. We have a very strong order book and the capital from the issue will primarily be invested in new solar energy facilities, but we will also invest in strengthening important functions within the company prior to the listing. Work on the listing is proceeding according to plan.
Advanced Soltech's Certified Adviser is FNCA, Tel: 08-528 00 399 E-mail: info@fnca.se
About the Operations in China
The operations in China are conducted in Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd, ASRE, its wholly owned local subsidiaries and in Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning and managing solar energy installations on customers' roofs in China. The customer does not pay for the plant, but instead undertakes to buy the electricity that the plant produces under a 20-year agreement. Current income comes from the sale of electricity to customers and from various forms of subsidies per kilowatt hour (kWh) of solar produced. The goal is to have an installed capacity of 1,000 megawatts (MW) by 2023, which is fully connected to the electricity grid by 2024.
Advanced Soltech’s subsidiary in China, ASRE, has signed an order with Anhui ShunFu Auto parts Technology Co Ltd. The order concerns the installation of a solar energy plant of 0.9 megawatts (MW) and is estimated to generate annual revenues of SEK 0.75 million, or SEK 15 million during the agreement’s 20-year term. The investment in the facility, which will be owned by ASRE, amounts SEK 5.05 million and construction is scheduled to start in the fourth quarter of 2020.
Advanced Soltechs CEO Max Metelius comments:
- We are very pleased to see a strong demand for green energy solutions in China, which gives a good inflow of new projects with good profitability to ASAB
About the China venture
In China ASAB operates through, its wholly owned local subsidiaries Advanced Soltech Renewable Energy (Hangzhou) Co. Ltd, ASRE and Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning and managing solar energy installations on customers’ roofs in China. The customer does not pay for the plant, but instead undertakes to buy the electricity that the plant produces under a 20-year agreement. Current income comes from the sale of electricity to customers and from subsidies. The goal is to have an installed capacity of 1,000 megawatts (MW) by 2023, which is fully connected to the electricity grid by 2024. ASAB is 51% owned by Soltech Energy Sweden AB (publ) and 49% by Soltech’s Chinese partner, Advanced Solar Power Hangzhou Inc.
Om Verksamheten i Kina
Advanced Soltech's subsidiary in China, ASRE, has signed an order with Wuhu Rongchuan Mechanical & Electrical Technology Co. The order concerns the installation of a solar energy plant of 1.7 megawatts (MW) and is estimated to generate annual revenues of SEK 1.37 million, or SEK 27.4 million during the agreement's 20-year term. The investment in the facility, which will be owned by ASRE, amounts SEK 9.42 million and construction is scheduled to start in the fourth quarter of 2020.
Advanced Soltechs CEO Max Metelius comments:
– Our team in China continues to sign orders with new customers. This project is carried out completely without any subsidies and shows a profitability well within our goals.
About the China venture
In China ASAB operates through, its wholly owned local subsidiaries Advanced Soltech Renewable Energy (Hangzhou) Co. Ltd, ASRE and Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning and managing solar energy installations on customers' roofs in China. The customer does not pay for the plant, but instead undertakes to buy the electricity that the plant produces under a 20-year agreement. Current income comes from the sale of electricity to customers and from subsidies. The goal is to have an installed capacity of 1,000 megawatts (MW) by 2023, which is fully connected to the electricity grid by 2024. ASAB is 51% owned by Soltech Energy Sweden AB (publ) and 49% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc.
Soltech Energy Sweden AB's (publ) new share issue with preferential rights for shareholders has been completed. The rights issue was oversubscribed by 590 percent. In total, shares were subscribed for for more than SEK 676 million, which is why Soltech has decided to also carry out a directed Over-allotment Issue. Soltech will thus receive a total of just over SEK 144 million before issue costs.
CEO Stefan Ölander in a comment:
– We are humbly grateful for the trust existing and new shareholders have shown us in this new share issue. We now have the funds we need to exploit the potential of the rapidly growing market and to continue our successful acquisition strategy.
Number of shares and Over-allotment
A total of 7,759,307 shares were subscribed for with the support of subscription rights, corresponding to approximately 95 percent of the Rights Issue, and 48,607,379 shares without the support of subscription rights, corresponding to approximately 595 percent of the Rights Issue. The rights issue was thus oversubscribed by 590 percent.
To enable allotment to those stakeholders who have not been allotted in the Rights Issue and for the purpose of broadening and strengthening the Company's ownership base, the Board has decided to issue an additional 3,840,000 shares in an Over – allotment issue. This is done at a subscription price of SEK 12 per share, which gives approximately SEK 46 million, and on the terms stated in the prospectus regarding the Rights Issue, which gives approximately SEK 98 million.
Through the Rights Issue and the Over-allotment Issue, a total of 12,012,423 shares will be issued and the Company will thus receive SEK 144,149,076 million before issue costs.
Allocation in the Rights Issue
The persons who have subscribed for shares on the basis of subscription rights have been allotted BTA in connection with simultaneous payment. Notice of allotment to the persons who have subscribed for shares without the support of subscription rights is expected to be distributed on 10 September 2020 by sending a settlement note. Allocation to the persons who have subscribed for shares via the nominee is expected to be visible in the account around 15 September 2020. Nominee-registered shareholders will be notified of the allotment in accordance with the respective nominee's routines. Subscribed and allotted shares must be paid for in cash no later than the settlement date, 15 September 2020, in accordance with the instructions on the settlement note. Only those who receive an award will be notified.
Allocation in the Over-Allocation Issue
Notice of allotment to the persons who have subscribed for shares without the support of subscription rights is expected to be distributed on 10 September 2020 by sending a settlement note.
Three groups of investors will be allotted shares in the Over-allotment Issue:
The Board has decided to give a large number of new owners the opportunity to participate in the over-allotment issue with a small investment to further broaden the shareholder base in the Company.
In order to open up a new circle of owners of professional investors, the Board has also decided to give investors who have shown special interest in Soltech, and who are judged to be able to contribute strategically to the Company's development, a certain opportunity to participate in the allotment issue.
Finally, it has been decided that key personnel within all ten of the Soltech Group will be given the opportunity to participate in the over-allotment issue in order to create loyalty, long-term perspective and commitment.
Share capital and number of shares
Following the registration of the Rights Issue and the Over-allotment Issue with the Swedish Companies Registration Office, the Company's share capital will increase by SEK 600,621 to a total of SEK 3,460,969. The number of shares in the Company will thereafter increase by an additional 12,012,423 shares to a total of 69,219,387 shares.
Paid subscribed shares, BTA
Subscription of shares with and without preferential rights took place during the period 24/8 – 7/9 2020. As soon as the share capital increase has been registered with the Swedish Companies Registration Office, paid subscribed shares (BTA) in the rights issue will be converted into new shares. Until then, trading with BTA on the Nasdaq First North Growth Market. Trading in new shares is expected to begin on Nasdaq First North Growth Market around week 41 2020. The persons allotted shares in the directed Over-allotment Issue will not receive BTA but will instead be allotted shares after the share capital increase has been registered with the Swedish Companies Registration Office. This is expected to take place around week 40 2020.
The purpose of the intended raising of capital before the planned listing is to be able to take advantage of the good business opportunities that the company now has in China. The new capital is intended to be invested in roof-based solar energy plants.
Advanced Soltech's CEO, Max Metelius comments:
China continues to recover from the Corona pandemic and we see strong demand for our offering with many business opportunities as a result. We have several large projects with good profitability in our pipeline and in order not to lose momentum on our growth journey, we now want to investigate the possibility of raising capital in the form of a preference share issue, which also strengthens the company's equity.
For more information contact:
Max Metelius, CEO Advanced Soltech Sweden AB (publ) Tel: 072- 316 04 44. Email: max.metelius@advancedsoltech.com
About the Operations in China
The operations in China are conducted in Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd, ASRE, its wholly owned local subsidiaries and in Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning and managing solar energy installations on customers' roofs in China. The customer does not pay for the plant, but instead undertakes to buy the electricity that the plant produces under a 20-year agreement. Current income comes from the sale of electricity to customers and from various forms of subsidies per kilowatt hour (kWh) of solar produced. The goal is to have an installed capacity of 1,000 megawatts (MW) by 2023, which is fully connected to the electricity grid by 2024.
ASRE and Longrui Solar Energy (Suqian) Co. Ltd. are wholly owned subsidiaries of Advanced Soltech Sweden AB (publ). ASAB is 51% owned by Soltech Energy Sweden AB (publ) and 49% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc.
Soltech Energy Sweden AB (publ) and PowerCell Sweden AB (publ) have signed a Nordic co-operation agreement to develop solutions for customers that include both the Soltech Group’s products and PowerCell’s products. The first joint customer is Swede Energy’s customer Amokabel AB in Alstermo, which has problems with the grid owner not being able to deliver more power from the electricity grid. The collaboration goes hand in hand with PowerCell’s increased focus on its stationary systems, where Soltech is chosen as a partner in solar energy.
The purpose of the collaboration agreement is for Soltech and PowerCell to develop and participate in projects where the companies’ technology and expertise in desktop applications are utilized. Soltech may integrate PowerCell products as part of Soltech’s energy storage products and also has the right to market and sell such Soltech products in the Nordic countries.
Like many other growing companies, Amokabel has major problems with not gaining access to the power they need from the electricity grid to be able to grow the business. The company therefore needs to find alternative ways of securing the power supply for its operations that will be needed in the near future. Amokabel has now commissioned Soltech’s subsidiary Swede Energy and PowerCell to investigate whether solar energy combined with fuel cells with hydrogen production and storage can be part of the solution. Parameters that are to be investigated include what a system solution can look like to meet both future power needs and how to use the system for power control and to provide the company with uninterrupted power. Amokabel has also ordered an 800kWp solar cell plant from Swede Energy, whose electricity production is intended to be used for hydrogen production, among other things.
Soltech’s CEO Stefan Ölander comments:
“This collaboration agreement with PowerCell and the agreement with Amokabel is a major breakthrough to help all companies and the public sector with the major problem of power shortages in the network. The business opportunities are very large and we are happy and proud that PowerCell chooses our group as a partner ”.
PowerCell Sweden’s sales director Andreas Bodén comments:
“The growing need for energy and, above all, sustainable energy, makes the combination of solar energy and fuel cells extremely interesting. We therefore see great opportunities for stationary power generation based on locally produced and stored hydrogen in combination with fuel cells. ”
On 27 August 2020, Soltech Energy Sweden AB (publ) signed an agreement to acquire 60 percent of the shares in the solar energy company Miljö & Energi Ansvar Sverige AB (MEASOL), with access on 1 September 2020. Soltech has an option to acquire the remaining 40 percent of the shares in 2024. MEASOL is headquartered in Stockholm and has eight employees and is expected to have sales of SEK 15 million in 2020 with a positive operating profit. The acquisition of MEASOL is an investment in strengthening the Group's expertise in electricity and installation and in building new business areas in the very fast-growing segments charging and IMD (individual metering and charging).
MEASOL has long been a partner of the Soltech Group and the plan is to gradually expand the business, while maintaining a good profit margin, from current levels to approximately SEK 50 million in 2023. The increase in business volume is expected to come from organic growth in combination with MEASOL adding charging and IMD to its product and service offering. In addition, Soltech expects that synergy effects within the Group in terms of joint purchasing, warehousing & logistics, marketing, HR, finance and administration will have a positive effect on earnings. The acquisition of MEASOL is financed entirely from its own cash and with newly issued shares in Soltech Energy.
CEO Stefan Ölander in a comment:
– We are very pleased to start the autumn with the acquisition of MEASOL, which stands for competence and quality. We deliver on our acquisition strategy while broadening our offering.
Marcus Nylund, CEO of Environment & Energy Responsibility Sverige AB in a comment:
– It feels completely right to join the Soltech family where there is both competence, drive, resources and synergies that we will now benefit from in our continued development.
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00. Email: stefan.olander@soltechenergy.com.
Briefly about Soltech Energy Sweden AB (publ)
Soltech is a complete supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. The group includes the subsidiaries Advanced Soltech Sweden AB (publ) where the Chinese investment is conducted, Soltech Sales & Support, NP-Gruppen, Swede Energy Power Solutions, Merasol, Soldags, Takorama and Fasadsystem. Soltech Energy Sweden AB (publ), is traded on Nasdaq First North Growth Market under the short name SOLT and has approximately 35,000 shareholders. The company's Certified Adviser is Erik Penser Bank. Phone: 08-463 83 00. Email: certifiedadviser@penser.se. For more information see: www.soltechenergy.com
The supplementary prospectus has been prepared due to Soltech publishing its interim report for the period January – June 2020 on 21/8 2020. The interim report is available at www.soltechenergy.com. The Supplementary Prospectus has been prepared in accordance with Article 23 of Regulation (EU) 2017/1129 and was approved and registered by the Swedish Financial Supervisory Authority on 24 August 2020.
The supplementary prospectus is part of, and should be read in conjunction with, the Prospectus. The definitions contained in the Prospectus also apply to the Supplementary Prospectus. The supplementary prospectus was published on the Company's and Aktieinvest's FK AB's websites, www.soltechenergy.com, and www.aktieinvest.se, respectively, on 24/8 2020 and is available together with the prospectus in electronic format.
Investors who, prior to the publication of the Supplementary Prospectus, have made a notification or otherwise agreed to subscribe for shares in the Offer, have the right under Article 23 (2) of Regulation (EU) 2017/1129 to withdraw their notification or consent within two working days from the publication of the Supplementary Prospectus. no later than 26/8 2020. Revocation must be made in writing to Aktieinvest FK AB, Emittentservice, 113 89 Stockholm or via e-mail to emittentservice@aktieinvest.se. Investors who have subscribed for shares in the Offer through a nominee must contact their nominee regarding revocation. Registration that has not been withdrawn will remain binding and investors who wish to remain with their subscription for shares in the Offer do not need to take any action. For complete terms and other information about the Offer, please refer to the Prospectus.
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00, stefan.olander@soltechenergy.com
NOT FOR PUBLICATION, DISTRIBUTION OR PUBLICATION, WHETHER DIRECTLY OR INDIRECTLY, IN AUSTRALIA, JAPAN, CANADA OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, DISTRIBUTION OR PUBLICATION OR RELEASE WOULD BE UNLAWFUL OR REQUIRE ADDITIONAL REGISTRATION OR OTHER MEASURES.
Soltech delivers a sales increase of 69 percent and an increase in operating profit (EBIT) of 210 percent compared with the second quarter of 2019. We expect that our expansion journey will continue, and that this year's sales will exceed last year's by a good margin.
CEO comment:
– The world has experienced a dizzying quarter and I am proud that our subsidiaries deliver such strong growth. Soltech is in an expansive phase and I look forward to building on our group and delivering value to our owners.
Second quarter in brief
▪ The Group's revenues in the quarter amounted to SEK 156.1 (92.3) million. An increase of 69%
▪ Revenues in the Swedish operations grew to SEK 109.1 (63.8) million, an increase of 71%
▪ The Group's profit before depreciation (EBITDA) amounted to SEK 49.7 (18.4) million.
An increase of 170%
▪ The Group's operating profit (EBIT) amounted to SEK 35.6 (11.5) million. An increase of 210%
▪ Profit for the period after tax amounted to SEK -37 (-3) million. The result was affected by
unrealized exchange rate differences in the Chinese operations by SEK -38.5 (-0.0) million
▪ The period's cash flow for the Group amounted to SEK 69.4 (-13.6) million
▪ Earnings per share amounted to -0.65 (-0.17)
▪ Covid-19 is not expected to have a significant impact on Swedish operations in the second
quarter. The main impact in the Swedish operations is that projects are pushed forward and
that it takes longer to reach a decision. Despite this, Soltech had a very good order intake
during the quarter, which contributes to the increased sales compared with the corresponding
period last year.
▪ Operations in China returned to a normal level during the quarter, where all installed capacity
of 143 MW now generates revenue as expected. However, revenues were negatively affected
in the period by approximately SEK 5 million due to temporary price reductions on electricity in
combination with a small part of the production facilities being closed until the end of May.
This is a direct result of Covid-19.
First half year in summary
▪ Total operating income amounted to SEK 209 M (148.7). One increase by 40%
▪ The Group's operating profit before depreciation (EBITDA) amounted to SEK 48.4 (38.2)
million. An increase of 26%
▪ The Group's operating profit (EBIT) amounted to SEK 20.8 (22.3) million. A reduction of 6%
▪ Profit for the period after financial items, currency effects and tax amounted to SEK -42.5
(-12.6) million
Significant events during the period
▪ On May 4, Soltech took over as owner of 70% of Fasadsystem in Stenkullen AB
▪ Soltech becomes the official sponsor of the Swedish investment in Expo 2020 in Dubai
▪ Over SEK 80 million in order value at Soltech's subsidiaries in April-May despite Covid-19
pandemic
▪ Soltech's subsidiary Advanced Soltech Sweden AB (publ) directed offer of up to SEK 100
million under the existing bond framework oversubscribed
▪ Soltech's subsidiary Advanced Soltech signs a cooperation agreement that, when fully
developed, provides just over SEK 31 million per year and takes orders of SEK 30.4 million
▪ Soltech Energy Sweden AB (publ) option program (2015/2020), which was established in 2015
before listing of the Company's shares on Nasdaq First North, has to the extent allotted and
subscribed, been redeemed by the holders
▪ Anna Kinberg Batra was elected by the Annual General Meeting as the new
Chairman of the Board
▪ Max Metelius is appointed CEO and Frederic Telander Chairman of Advanced Soltech
as of June 24
Significant events after the reporting period
▪ Advanced Soltechs ASRE receives two new orders that provide a total of approximately
SEK 130 million during the contract period
▪ Soltech Energy Sweden AB (publ) announces rights issue of SEK 98 million with possible
overallotment issue of a maximum of 46 to finance continued expansion through acquisitions
and to develop existing subsidiaries
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00.
Email: stefan.olander@soltechenergy.com.
The information in this press release is such that Soltech Energy Sweden AB (publ) must publish in accordance with EU regulation no. 596/2014 on market abuse. The information was submitted through the above contact person for publication on 21 August 2020 at 13.00 CET.
About Soltech Energy Sweden AB (publ)
Soltech is a complete supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. The group includes the subsidiaries Advanced Soltech Sweden AB (publ) where the Chinese investment is conducted, Soltech Sales & Support, NP-Gruppen, Swede Energy Power Solutions, Merasol, Soldags, Takorama and Fasadsystem. Soltech Energy Sweden AB (publ), is traded on the Nasdaq First North Growth Market under the short name SOLT and has approximately 34,000 shareholders. The company's Certified Adviser is Erik Penser Bank. Phone: 08-463 83 00. Email: certifiedadviser@penser.se. For more information see: www.soltechenergy.com
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00. Email: stefan.olander@soltechenergy.com
About Soltech Energy Sweden AB (publ)
Soltech is a complete supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. The group includes the subsidiaries Advanced Soltech Sweden AB (publ) where the Chinese investment is conducted, Soltech Sales & Support, NP-Gruppen, Swede Energy Power Solutions, Merasol, Soldags, Takorama and Fasadsystem. Soltech Energy Sweden AB (publ), is traded on the Nasdaq First North Growth Market under the short name SOLT and has approximately 34,000 shareholders. The company's Certified Adviser is Erik Penser Bank. Phone: 08-463 83 00. Email: certifiedadviser@penser.se. For more information see: www.soltechenergy.com