Norsk Renewables AS: Contemplated private placement

13 Feb 2024 07:28 CET

Oslo, 13 February 2024: Reference is made to the stock exchange announcement
published by Norsk Renewables AS ("Norsk Renewables" or the "Company") on 29
January 2024, where the Company announced that it was considering raising a
minimum amount of NOK 30 million in the form of a share issue. The Company
hereby announces a contemplated private placement with gross proceeds in the
range of NOK 30 million to NOK 45 million (the "Offer Size") by issue of new
shares (the "Offer Shares") in the Company (the "Private Placement"). The
subscription price per Offer Share in the Private Placement will be at a fixed
price of NOK 0.30 (the "Offer Price"). Valinor AS ("Valinor"), the largest
shareholder in the Company with approx. 53.1% of the shares outstanding, has
pre-committed to subscribe for, and will be allocated, NOK 30 million at the
Offer Price in the Private Placement (the “Pre-Committing Investor”). The
Company's board of directors (the "Board") may propose a Subsequent Offering (as
defined below) towards existing shareholders not participating in the Private
Placement.
The Offer Price has been determined by Valinor after extensive market sounding
of potential investors, first announced in November 2023 and subsequently in
January 2024. Due to insufficient interest from the capital market to support
the Company, Valinor has decided to support the Company and will subscribe for
NOK 30 million in the Private Placement which covers the low end of the Offer
Size range.
The net proceeds to the Company from the Private Placement will be used to cover
development expenses to further develop the Company’s significant project
pipeline in South Africa to the ready-to-build stage as well as for general
operating expenses through 2024.
“As a growth company, Norsk Renewables is dependent on attracting equity to fund
our operations and capital expenditures. Faced with a very challenging capital
market for green energy solutions, Norsk Renewables is grateful to have the
continued support of our largest shareholder, Valinor.
In my relatively short period at Norsk Renewables, I have seen Valinor showcase
their strong belief in the Company. Firstly, through the joint venture in South
Africa that takes our combined portfolio to 915 MW across solar, wind and BESS.
This transaction was announced Q4 2023 and is expected to close in first half of
2024. And secondly, through now committing further capital to the Company
despite the market conditions. Their continued support is essential for Norsk
Renewables in a critical phase to ensure that we can cover expenses to further
develop the significant project pipeline in South Africa to ready-to-build stage
as well as to cover general operating expenses through 2024.
On behalf of the entire team at Norsk Renewables, I would like to extend our
sincere thanks to Valinor for their commitment.” says Torbjørn Elliot
Kirkeby-Garstad, CEO of Norsk Renewables.

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