Swiss Steel Holding AG Announces Rights Offering to Boost Capital and Liquidity

Swiss Steel Holding AG disclosed the initiation of a rights offering following its extraordinary general meeting on April 4, 2024, which endorsed a share capital increment through the issuance of 3,101,000,000 new shares. This move aims to fortify the company's capital structure, enhance liquidity, and mitigate indebtedness. The adjustment sees the share capital rise from CHF 458,828,620.65 to CHF 492,788,597.68, with the par value of shares dropping from CHF 0.15 to CHF 0.08. Targeted proceeds of EUR 300 million from this expansion are earmarked to lessen debt levels and concentrate on market re-entry, especially amidst an anticipated economic upturn.

Starting April 11, 2024, the exercise period for the rights offering will begin, allowing existing shareholders to acquire new shares at a rate of 73 for every 72 subscription rights held. This offering is subject to specific residency and legal restrictions. Unsubscribed shares may be offered publicly in Switzerland or as private placements abroad, excluding the U.S., ensuring compliance with relevant securities laws. BigPoint Holding AG, the principal shareholder, has pledged to underwrite the offering by subscribing to all unsold shares at the offer price of CHF 0.0925 per share. A lock-up agreement has also been arranged with BigPoint Holding AG for six months post-offering, with specified exceptions.

The financial community anticipates the rights exercise period and share placement outcomes, with major activities planned between April 11 and April 25, 2024. This strategic move intends to prime Swiss Steel Holding AG for growth opportunities in the evolving economic landscape.