Ensurge Micropower ASA - Approval of share capital increase by conversion of convertible loan

Rhea-AI Summary

Ensurge Micropower announced the approval of a share capital increase following the conversion of a NOK 6 million convertible loan plus accrued interest into shares. This decision follows a resolution from an Extraordinary General Meeting in November 2023 that extended the maturity date and amended conversion terms. The conversion resulted in the issuance of 12,439,921 new shares, which will not be listed on Oslo Børs until a listing prospectus is published. The company's share capital will now total NOK 308,951,604.50, divided into 617,903,209 shares, each with a par value of NOK 0.50.

Positive

• Conversion of NOK 6 million loan into shares reduces debt and improves the balance sheet.
• Issuance of 12,439,921 new shares increases the company's equity base.
• Company's share capital increases to NOK 308,951,604.50, enhancing financial stability.

Negative

• The conversion results in shareholder dilution due to the issuance of 12,439,921 new shares.
• New shares will not be listed on Oslo Børs until a prospectus is published, potentially delaying trading opportunities for investors.

Oslo, 24 May 2024 

Reference is made to the Extraordinary General Meeting in the Company on 10 November 2023, which resolved to extend the maturity date and amend the conversion terms of certain convertible loans representing a total principal amount of NOK 7 million, whereby the convertible loans, plus accrued interest, would be convertible into shares prior to the maturity date on 10 November 2024 at a conversion price of NOK 0.5250 per share. 

The lender of a total of NOK 6 million of the convertible loans has provided its notification of conversion to the Company and requested that its convertible loan, plus accrued interest, is converted into shares in the Company. 

The Board therefore resolved on 24 May 2024 to approve the conversion of NOK 6,000,000 of the convertible loans, plus accrued interest, and the resulting issuance of a total of 12,439,921 new shares in the Company. The new shares will not be listed on Oslo Børs until a listing prospectus is published. 

Upon registration of the share capital increase associated with the conversion of the convertible loan in the Norwegian Register of Business Enterprises, the Company's share capital will be NOK 308,951,604.50 divided into 617,903,209 shares, each having a par value of NOK 0.50. 

For more information, please contact: Lars Eikeland, Chief Executive Officer E- mail: lars.eikeland@ensurge.com (mailto:lars.eikeland@ensurge.com) 

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

FAQ

What is the significance of Ensurge Micropower's share capital increase?

The share capital increase signifies that Ensurge Micropower has converted a NOK 6 million loan into shares, reducing debt and increasing equity.

How many new shares were issued by Ensurge Micropower after the loan conversion?

Ensurge Micropower issued 12,439,921 new shares following the loan conversion.

What will be Ensurge Micropower's total share capital after the increase?

After the increase, Ensurge Micropower's total share capital will be NOK 308,951,604.50.

What is the conversion price for the convertible loans into shares for Ensurge Micropower?

The conversion price for the convertible loans into shares is NOK 0.5250 per share.

When will the new shares from Ensurge Micropower be listed on Oslo Børs?

The new shares will be listed on Oslo Børs once a listing prospectus is published.

What impact does the share issuance have on existing shareholders of Ensurge Micropower?

The issuance of new shares dilutes the holdings of existing shareholders.