The company has certainly had a wild ride on the stock market, having already dropped 90% since last January, and today a new financing solution was announced, in which old owners who did not participate in the offering will be wiped out. The number of shares before the arrangement was 191M, and it can increase to almost 500M shares.
Debt at the end of Q3 was a staggering 1800MSEK, and net debt was 1400MSEK. The company will receive 457MSEK from the rights issue and a maximum of 172MSEK from warrants.
If the company uses all the funds received from the offering to repay debts, then the target of D/EBITDA being max 3 will just barely be met. A 2000MSEK bond matures in a year, and it would hardly have been possible to get a 5.5% margin on it in the current situation.
EV/EBITDA will remain at some level of 5 after the arrangement, but with a significantly lighter debt load. Would this be a good point to start with a clean slate?