Incap Corporation: Incap is preparing a rights issue of EUR 10.9 million, as estimated

Incap Corporation      Inside information 16 October 2020 at 2.05 p.m. (EEST)



Incap is preparing a rights issue of EUR 10.9 million, as estimated

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Incap Corporation (the “Company”) is preparing a rights issue with a total amount of EUR 10.9 million, as estimated. UB Securities Oy would act as the lead manager of the rights issue.

“Incap has grown strongly and profitably in recent years, and our growth is supported by increased utilization of electronics and global outsourcing trends. The background of our strong performance is our unique entrepreneurial culture and efficient operating model.

Following the acquisition of AWS Electronics Group in January this year, we estimate that our revenue for 2020 will be significantly higher than in 2019 and our operating profit (EBIT) is estimated to be approximately on the same level as in 2019. Despite the impact of the COVID-19 pandemic, the overall demand for our services has continued on a good level.

Our industry is very fragmented, and we see plenty of opportunities for growth and consolidation in the future as well. We want to be an active player and accelerate the consolidation of our industry while maintaining our cost efficiency and long-term profitability. With the proposed rights issue, we are preparing ourselves for consolidation and international growth,” says Otto Pukk, President and CEO of Incap Group.

In the rights issue, each shareholder in the Company would receive one subscription right for each three shares held in the Company, and each subscription right would entitle the holder to subscribe for one new share for a subscription price of EUR 7.50.

The purpose of the contemplated rights issue would be to strengthen the Company's capital structure, balance sheet and financial position and thus create conditions for the Company to grow and develop its business in accordance with its strategy. The proceeds to be raised in the rights issue could be used to repay the Company’s loans, possible future acquisitions and general corporate purposes.

The detailed terms and conditions of the rights issue will be published after the Extraordinary General Meeting, to be held on 23 October 2020, if it decides on the share issue authorisation in accordance with the Board of Directors’ proposal and the Board of Directors decides to use the authorisation.

INCAP CORPORATION

For additional information, please contact:

Otto Pukk, President and CEO, tel. +372 508 0798 

Distribution:

Nasdaq Helsinki Ltd.

Principal media

www.incapcorp.com

INCAP IN BRIEF

Incap Corporation is a trusted partner and full service provider in Electronics Manufacturing Services. As a global EMS company Incap supports customers ranging from large multinationals and mid-sized companies to small start-ups in their complete manufacturing value chain. Incap offers state-of-the-art technology backed up by an entrepreneurial culture and highly qualified personnel. The company has operations in Finland, Estonia, India, Slovakia, the UK and Hong Kong and employs approximately 1,300 people. Incap’s share has been listed on Nasdaq Helsinki Ltd stock exchange since 1997.

IMPORTANT INFORMATION

This release is not an offer for sale of securities in the United States. Securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any part of the offering in the United States or to conduct a public offering of securities in the United States.

The distribution of this release may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States, Canada, Australia, Hong Kong, South Africa, Singapore, Japan or New Zealand. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This release is not directed to, and is not intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

In any EEA Member State, other than Finland, this release is only addressed to and is only directed at qualified investors in that Member State within the meaning of Regulation (EU) 2017/1129 (the “Prospectus Regulation“).

This release is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order“) or (iii) high net worth companies, and other persons to whom it 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“). Any securities mentioned herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this release or any of its contents.

This release does not constitute a prospectus as defined in the Prospectus Regulation and as such, does not constitute or form part of and should not be construed as, an offer to sell, or the solicitation or invitation of any offer to buy, acquire or subscribe for, any securities or an inducement to enter into investment activity.

No part of this release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information contained in this release has not been independently verified. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The Company or any of its respective affiliates, advisors or representatives or any other person, shall have no liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this release or its contents or otherwise arising in connection with this release. Each person must rely on their own examination and analysis of the Company, its subsidiaries, its securities and the transactions, including the merits and risks involved.

The Lead Manager is acting exclusively for the Company and no one else in connection with the Offering. It will not regard any other person as its respective client in relation to the Offering. The Lead Manager will not be responsible to anyone other than the Company for providing the protections afforded to its respective clients nor for giving advice in relation to the Offering or any transaction or arrangement referred to herein.

This release includes “forward-looking statements”. These statements may not be based on historical facts, but are statements about future expectations. When used in this release, the words “aims,” “anticipates,” “assumes,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “should,” “will,” “would” and similar expressions as they relate to the Company and the transactions identify certain of these forward-looking statements. Other forward-looking statements can be identified in the context in which the statements are made. These forward-looking statements are based on present plans, estimates, projections and expectations and are not guarantees of future performance. They are based on certain expectations, which, even though they seem to be reasonable at present, may turn out to be incorrect. Such forward-looking statements are based on assumptions and are subject to various risks and uncertainties. Readers should not rely on these forward-looking statements. Numerous factors may cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied in the forward-looking statements. The Company or any of its affiliates, advisors or representatives or any other person undertakes no obligation to review or confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this release.

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