SeaTwirl will not proceed with the Letter of Intent with Colruyt Group and NorSea Group and instead intends to raise capital from the market through rights issues
After careful considerations, the board of SeaTwirl has decided not to make use of the Letter of Intent signed between SeaTwirl, Colruyt Group and Norsea Group in 2019.
According to the letter of intent, Colruyt Group and Norsea Group would inject a total of 70 MSEK in new capital at a price of 65 SEK a share. SeaTwirl’s valuation has increased considerably over the last year, with the current share price being around 210-220 SEK. With the increasingly positive sentiment surrounding renewable energy, grants as well as patents obtained by SeaTwirl and positive test reports, the company has a very strong belief in the future with many countries planning for floating wind power generation.
The cash injection from the EU grant made it possible to develop the system up to a level where the critical issues have been handled and SeaTwirl can now enter the phase of ordering materials and planning the installation.
SeaTwirl’s board and owners are optimistic about the outlook for floating wind energy and its enormous potential. Working with Colruyt Group and Norsea Group over the last year has been educational and SeaTwirl has received valuable input which has strengthened the confidence in the technology platform. SeaTwirl intends to continue the cooperation and work closely with both companies in the future.
However, with the current valuation of SeaTwirl and the healthy cash flow, due to the received grants, SeaTwirl has opted to not proceed with the letter of intent. Instead, SeaTwirl will raise capital from the market through rights issues. That strategy will give SeaTwirl freedom to maneuver and to continue the strong focus on the development, installation and commercialization of SeaTwirl S2. SeaTwirl believes this approach will speed up the S2 project, which has already come a long way, and lead to both S2 and future complimenting projects becoming successful.
SeaTwirl will raise funds to build and install SeaTwirl S2 which is now planned to take place in Q2-Q3, 2021, with the combination of grants and share emissions. Furthermore, a commercialization strategy will be worked out and executed before the time of installation. The first emission is expected to be executed during Q2, 2020 raising approximately 70 MSEK.
The belief is that the scenario above will position SeaTwirl even better to take advantage of the strong development within floating offshore wind power.
Instead of proceeding with the letter of intent with Colruyt Group and NorSea Group regarding an investment of 70 MSEK in SeaTwirl, SeaTwirl intends to raise capital from the market through rights issues. SeaTwirl will use the capital raised to:
- Continue the calculations, simulations and construction of SeaTwirl S2
- Finalize the test area and all needed permissions
- Finalize the method of installing SeaTwirl S2
- Complete all needed applications to governmental institutions and the EU
- Procurement of materials for the construction of SeaTwirl S2
- Commercialize and brand SeaTwirl S2
- Run the general operation with a focused strategy on obtaining additional grants