Chinese investment fund invests in Swedish sensor company
JonDeTech Sensors and the Chinese tech-fund Jiuyou Fund signed a term sheet regarding a directed issue of SEK 40 million (EUR 3.69 million) with a subscription period up until April 30, 2020. Jiuyou Fund now confirms the investment through binding agreement.
Under the agreement a subscription of 2,932,552 shares will be made when the it is fulfilled. The investment corresponds to a price of SEK 13,64 per share and a dilution of approximately 13.65%. In a press release the Swedish company explains that the reason for the board deciding to conduct an issue that deviated from the shareholders' preferential rights was the assessment that Jiuyou Fund will be able to play an instrumental role for the company in the Asian markets. Besides being a financially stable owner with a long-term belief in the company, Jiuyou Fund will be able to give access to relevant local stakeholders and a platform for value creation. JonDeTech and Jiuyou Fund has therefor also agreed in the binding agreement that the investment will be carried out through a transfer of SEK 20 million to a Swedish bank account of JonDeTech on May 15, 2020 at the latest, and the remaining SEK 20 million (EUR 1.84 million) will be transferred in local currency to a wholly-owned subsidiary of JonDeTech in China. Technically, SEK 20 million in Sweden constitutes the issue proceeds and the remaining SEK 20 million in China will be contributed to JonDeTech as a condition for the investment. JonDeTech will primarily use the capital to develop its Go-To-Market strategy, strengthen the its presence in Asia, develop the company's manufacturing capacity as well as its product portfolio, lastly JonDeTech aims to use the capital to strengthen the organization as well as new patents. “It is with great pleasure and confidence that we can fully welcome Jiuyou Fund as well as their Chairman and CEO Frank Liu as shareholders in JonDeTech. Jiuyou Fund will be an important part of our Go-To-Market platform and we look forward to a mutually beneficial and long-term cooperation,” says Per Lindeberg, CEO JonDeTech.