NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY, IN AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES
Oslo, Norway – 11 April 2016
Reference is made to the stock exchange notice given on 7 April 2016 regarding Induct AS's ("Induct" or the "Company") completion of a First Private Placement of NOK 8 million in cash payment and a Second Private Placement in the range of NOK 7-10 million.
Induct has successfully now raised NOK 10 million in the Second Private Placement, of which NOK 1 million is committed in cash subscriptions and NOK 9 million is committed through conversion of debt. The 1 000 000 new shares ("New Shares") to be issued in the Second Private Placement is subject to approval by the Company's general meeting. A notice for a general meeting on 18 April 2016 will be distributed later today.
The NOK 18 million raised in the First and Second Private Placements reduces the Company's debt, improves the Company's balance sheet and provides the Company with working capital.
The New Shares to be issued under the Second Private Placement will be listed on Merkur Market and delivered to the securities accounts of the subscribers as soon as practically possible after
registration of the share capital increase in the Norwegian Register of Business Enterprises, expected on or about 28 April 2016.
The Subsequent Offering
As announced on 7 April 2016, the Company intends to carry out a subsequent offering. Taking into consideration the expected participation from existing shareholders in the subsequent offering and the number of existing shareholders who have been offered to participate in the Private Placements, the Board of Directors has decided to propose a subsequent offering of up to NOK 5 million.
The subsequent offering will thus consist of an offer of 500,000 new shares (the "Offer Shares") at a subscription price corresponding to the subscription price in the Private Placements, being NOK 10 (the "Subsequent Offering").
The Subsequent Offering is proposed to be completed as a private placement towards persons who (i) are shareholders of the Company as of 18 April 2016 (as registered in the Norwegian Central Securities Depository on 20 April 2016); (ii) were not offered to subscribe for new Shares in the Private Placement; and (iii) are not resident in a jurisdiction where such offering would be unlawful or, for jurisdictions other than Norway, would require any prospectus, filing, registration or similar action (the "Eligible Shareholders"). The Subsequent Offering is subject to approval by the upcoming general meeting.
The Induct shares will be traded exclusive the right to participate in the Subsequent Offering as of 19 April 2016.
The subscription period in the Subsequent Offering will commence on 18 April 2016 16.30 CET and end on 2 May 2016 16.30. Oversubscription and settlement of share deposit through conversion of debt will be allowed.
The Company will prepare and publish a registration prospectus prior to the start of the subscription period in the Subsequent Offering. The prospectus will be filed with the Norwegian Register of Business Enterprises.
For further information, please contact:
Alf Martin Johansen, Chief Executive Officer
+47 90 17 94 35
Based on eight years of collaboration with over 250 organizations, Induct offers innovation communities, delivered as "Software as a Service," that enable organizations to create, manage, track and measure the innovation process from idea creation through to final implementation and impact reporting. Induct enables its customers to connect with each other in larger networks to share best practices, while deploying and monetizing initiatives - all within a secure, collaborative, and access-controlled cloud-based network. Induct is listed on the Merkur Market list on the Oslo Stock Exchange with the ticker INDUCT-ME.
Induct: "Connecting Innovation Communities"