Exercise of the over-allotment option
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ABG Sundal Collier and Handelsbanken Capital Markets (the “Joint Global Coordinators”) have notified MIPS AB (publ) (”MIPS” or the ”Company”) and BTA, HealthCap V L.P., KTH-Chalmers Capital KB and ALMI Invest Stockholm AB (the “Main Shareholders”) that the over-allotment option has been exercised in full in respect of 1,859,905 existing shares in the Company.
In connection with the initial public offering and listing of the Company’s shares on Nasdaq Stockholm (the “Offering”), the Main Shareholders granted the Joint Global Coordinators the option to purchase up to 1,859,905 existing shares in the Company to cover over-allotments of shares in the Offering (the “Over-Allotment Option”). The Joint Global Coordinators have today exercised the Over-Allotment Option in full. No stabilization activities have been carried out since the listing, and due to the Company’s share price performance, the Joint Global Coordinators have decided to end the stabilization period.
Description of the Over-Allotment Option
An over-allotment option means that the Main Shareholders in the initial public offering, if there is a large demand for shares, has the option to sell more shares in the Offering. In this case the Over-Allotment Option meant that the Main Shareholders, in line with what is stated in the prospectus, has sold an additional 1,859,905 existing shares in MIPS.
The Over-Allotment Option was issued in order to make it practically possible to carry out price stabilization transactions during the first 30 calendar days after the listing of MIPS’ shares. As the share price development has been good and stable no price stabilization transactions have been needed and the Joint Global Coordinators have today decided to terminate the stabilization period.
The use of the Over-Allotment Option has no effect for other existing shareholders.
MIPS is specialized in helmet based security and protection of the brain and is world leader in this field. Based on an ingredient brand model MIPS Brain Protection System (BPS) is sold to the global helmet industry. The solution, which is patented in all relevant markets, is based on more than 20 years of research and development together with the Royal Institute of Technology and Karolinska Institutet in Stockholm.
The company’s headquarter with 22 employees in research and development, sales and administration is in Stockholm, where also the test facility is located. Production takes place at sub-contractors. During 2016 net sales amounted to MSEK 87 with an adjusted EBIT margin of 28 per cent. For more information, www.mipscorp.com.
ABG Sundal Collier and Handelsbanken Capital Markets are Joint Global Coordinators and Joint Bookrunners. Advokatfirman Cederquist is legal advisor to the Company and Advokatfirman Hammarskiöld & Co is legal advisor to the Joint Global Coordinators and Joint Bookrunners.
For further information, please contact:
Boel Sundvall, Head of Investor Relations at MIPS
Telephone: +46 705 60 60 18
This announcement is not and does not form a part of any offer for sale of securities in any jurisdiction in which such offer would be unlawful.
This announcement is not for release, publication or distribution, in whole or in part, directly or indirectly into the United States (including its territories and dependencies, any State of the United States and the District of Columbia), Australia, Canada, Japan or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures. Any failure to comply with these restrictions may constitute a violation of the securities laws of such jurisdiction. The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and accordingly may not be offered, sold or transferred, directly or indirectly, within the United States absent registration or an exemption from the registration requirements of the Securities Act and in accordance with applicable U.S. state securities laws. The Company does not intend to register any offering in the United States and no public offering of the securities referred to in this announcement is being made in the United States.
The offering of the securities referred to in this announcement has been made by means of a prospectus. This announcement is not a prospectus for the purposes of Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the “Prospectus Directive”). Investors should not invest in any securities referred to in this announcement except on the basis of information contained in the aforementioned prospectus.
In any EEA Member State other than Sweden that has implemented the Prospectus Directive, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive, i.e., only to investors who can receive the offer without an approved prospectus in such EEA Member State.
This communication is only being distributed to and is only directed at persons in the United Kingdom that are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (ii) high net worth entities, and other persons to whom this announcement may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). This communication must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Persons distributing this communication must satisfy themselves that it is lawful to do so.
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “will,” “may,” “continue,” “should” and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice.
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MIPS AB (publ), Källtorpsvägen 2, Täby, 183 71 Sweden