17 December 2010

Obducat secures equity financing facility

Obducat AB of Malmö, Sweden, which supplies systems based on nano-imprint lithography (NIL) and electron-beam lithography, has entered a financing agreement with YA Global Master SPV Ltd (Yorkville) under which it, on several occasions during a 48-month period, may issue new class B shares to Yorkville up to an aggregate of SEK30m (about €3.3m, or $4.46m).

“Our ability to choose if, and when, to access funds under this facility provides us with important flexibility going forward,” says CEO Patrik Lundström. “The facility gives us a valuable additional financial resource to accomplish the commercialization of our product portfolio,” he adds.

The subscription price for new shares will be 95% of the lowest daily volume weighted average price for Obducat’s class B share during five trading days after Obducat notifying Yorkville that a new issue under the facility will be made. Further, in connection with each new issue, Obducat has a right to determine a floor price below which it will not issue any shares. No single new issue under the facility may exceed SEK400,000 of proceeds. Also, Yorkville is only obliged to subscribe for such a number of shares that Yorkville’s holding in the firm does not exceed 4.99% of Obducat's total number of shares. The facility entails certain customary representations and warranties and covenants by Obducat to Yorkville.

In consideration for its undertakings under the agreement, Yorkville is entitled to a fee of 1.5% of the SEK30m committed amount. Obducat will also reimburse Yorkville for certain legal costs.

The agreement is conditional upon approval by a general meeting of Obducat on 3 January 2011, including an initial authorization to issue new shares under the facility.

As announced on 30 November, Obducat is also carrying out a rights issue of convertibles with preferential rights for its shareholders and warrant holders.

Tags: Obducat Lithography

Visit: www.obducat.com

Visit: www.yorkvilleadvisors.com