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Tilgin raises SEK 72 million through rights issue


Stockholm.-The subscription period for Tilgin’s rights issue of shares and warrants has ended. The rights issue will raise SEK 72 million for Tilgin before issue and underwriting costs. Upon full exercise of the warrants, the company could raise a further SEK 67 million.

“The rights issue gives Tilgin the resources it needs to invest in development and sales of our world-leading IP technology,” says Ola Berglund, Tilgin’s CEO. “In the first quarter Tilgin presented strong order intake and record gross margins. Since then, the company has announced an initial order for the new Mood 400 product platform from a leading telecom operator in Southern Europe for their IPTV launch. This order has been won in co-operation with a global systems integrator. Additionally, a larger order has been received for IP residential gateways from a leading Nordic operator. Our leading products, strong customer relationships and partners such as Ericsson and Nokia Siemens will, together with this rights issue, enable Tilgin to return to growth and profitability.”

Tilgin has now completed its rights issue of shares and warrants, raising a total of SEK 72 million. The subscription period was March 31 – April 25, 2008. At the end of the period SEK 57,906,654 had been subscribed for using pre-emption rights and SEK 282,399 without pre-emption rights. The remaining part, representing about SEK 14 million, will thus be subscribed for by a number of underwriters based on separate underwriting agreements, as previously announced.

The rights issue refers to the issue of Units consisting of shares and warrants. Shareholders are entitled to subscribe for one unit consisting of three new shares and two warrants of two different series for every three shares held. The subscription price for a unit is SEK 9.75, representing a subscription price per new share of SEK 3.25. The warrants, of which one series matures in 2009 with a subscription price of SEK 4 and the other matures in 2010 with a subscription price of SEK 5, have been issued at no cost. The rights issue will raise SEK 72 million for the company. Upon full exercise of the warrants, the company could raise a further SEK 67 million.

Upon registration at the Swedish Companies Registration Office, the rights issue will increase the number of shares in the company by 22,274,598 to 44,549,198. The share capital will thus increase by SEK 22,274,598 to 44,549,198. Through this 14,849,732 warrants have been issued.

Start of trading for the new issued shares and warrants at OMX Nordic Exchange Stockholm is estimated to the week starting with 26 May 2008. Detailed terms and conditions for the warrants are available on the company’s website.


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