The new shares will be issued at a subscription price of 150 SEK per share. Six Series A or Series B shares will carry the right to subscribe for one new Series B share. The rights issue will provide Net Insight with proceeds of up to approximately 150 MSEK through subscription of a maximum of 1,001,379 Series B shares. September 14, 1999 will be the record date for receipt of pre-emptive rights; i.e., those registered as shareholders in Net Insight´s share register on that day will be issued pre-emptive rights to participate in the rights issue.
A guarantee consortium consisting of Enskilda Securities and a number of other financial institutions guarantees 50 percent of the total proceeds of 150 MSEK. Furthermore, a number of the existing institutional owners have declared that they are favorable to the rights issue and that they are going to subscribe for their pre-emptive rights.
Net Insight will use this capital to fund its continuing international growth, marketing and product development. The founders, Lars Gauffin, Per Lindgren and Christer Bohm, who owned 26.4 percent of the capital and 64.6 percent of the votes before the rights issue, will remain active in the company and retain voting control. Due to limited private funds, however, they will only partly participate in the rights issue.
The time-table has been set as follows:
September 10:
Shares will be listed ex-rights to participate in the rights issue.
September 14:
Record date for receipt of pre-emptive rights, i.e. those registered as shareholders in Net Insight´s share register on that day will be issued pre-emptive rights to participate in the rights issue.
Starting on September 16
until and including September 28:
Trading in pre-emptive rights.
Starting on September 16
until and including October 1:
Subscription and settlement period.
For further information, please contacts:
Bengt Olsson, CEO Net Insight, phone: +46 8 449 22 30, E-mail: bengt.olsson@netinsight.net
THE SECURITIES BEING OFFERED IN CONNECTION WITH THE NEW ISSUANCE DESCRIBED ABOVE HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE LAWS OF ANY STATE, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES, EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE LAWS.
About Net Insight
Net Insight is a network equipment company developing and marketing DTM-based (Dynamic synchronous Transfer Mode) solutions that enable network operators to reduce costs and build future proof network with superior performance and unique scalability. Net Insight´s vision is to help release the full potential of the Internet and fiber technology, thereby enabling network operators to provide full interactive communication to people all over the world. For more information, see http://www.netinsight.net