Green Hydrogen Systems, GHS, launches prospectus for an issuance with preemptive rights for existing shareholders.

Assuming all shares as subscribed for, the issuance will bring in DKK 469m (EUR 62.9m) in gross proceeds and approx. DKK 429 in net proceeds, the announcement reads.

The issuance was expected as the company announced a planned capital increase in connection to its Q1 financial report.

“At Green Hydrogen Systems, we have an ambition to become a significant player in the global sustainable energy transition. Achieving our 2026 target of surpassing DKK 1.2 billion in revenue is an important step towards fulfilling that ambition,” says CEO Sebastian Koks Andreassen.

He elaborates that to reach that aim, the company needs to complete the development of the X-Series and launch it commercially in order to ensure progress in A-Series deliveries and new orders to flow into the baclog.

”And we need to continuously optimise our product offerings, strengthen the technical organisation and expand the commercial rollout. We are therefore aiming to raise gross proceeds of DKK 469 million in a rights issue, which also serves to ensure adequate capitalisation of the company,” says Koks Andreassen.

The issuance includes 104,296,612 new shares with a nominal value of DKK 1 each with subscription price set at DKK 4.5 per share.

All existing shareholders will be will be allocated five pre-emptive rights for each one existing share held.

And the 5:4 subscription ratio means that four pre-emptive rights will entitle the shareholder to subscribe for one new share. 

Subscription period for new shares begins on June 19 at 9:00 and closes at June 30 at 17:00.

A string of the company’s major shareholders have undertaken subscription commitments conditional on the fact that the company succeeds in generating gross proceeds of DKK 225m.

If the result falls below DKK 225m in gross proceeds, the issuance will be withdrawn, and if it ends up at less than DKK 469m – but above DKK 225m – the company may have to adjust its business plan, including the pace of executing the plan. At the same time, it could mean that a new capital raise might come at an earlier point than what had otherwise been the case, the company writes.

It is furthermore evident that if gross proceeds exceed DKK 225m, the company expects being able to draw on two credit facilities with a principal of DKK 250m made available by major stakeholders APMH Invest and pension fund ATP.

Tuesday morning, the GHS stock dropped by 3.2% to DKK 30.