Equity Research Svenska Aerogel: Financing secured through directed issues of units

Svenska Aerogel Holding AB (“Svenska Aerogel” or the “Company”) announced on Friday, August 8, that the Company has carried out two directed issues of units (the “Directed Unit Issues”) and an issue of free warrants to existing shareholders as compensation for the dilution resulting from the Directed Unit Issues. The issuance of the free warrants is subject to approval at an extraordinary general meeting. Carlsquare Equity Research views the solution as an effective and sound financing that strengthens the Company’s capital position and strategic development, while at the same time offering existing shareholders compensation for dilution. At the same time, an order for 1.5 tons of specially developed aerogel material for Matrix Brands has been completed.

An effective financing solution for both operations and shareholders

The Directed Share Issues are divided into two tranches, the first of which includes a maximum of 956,556 units and is aimed at a selected group of external investors, including Niklas Estensson, Cibet AB, Olle Olsson, Jinderman & Partners AB, JEQ Capital AB, and Tellus Equity Partners. The second issue comprises a maximum of 83,444 units and is conditional upon a decision at an extraordinary general meeting. This second issue is directed to Gästrike Nord Invest AB (the Company’s largest shareholder), as well as CEO Tor Einar Norbakk and Chairman of the Board Jonas Lundberg. Each unit consists of eight shares, three warrants of series TO7, and two warrants of series TO8. The subscription price is set at SEK 14.40 per unit, corresponding to SEK 1.80 per share, representing a discount of approximately 11 percent compared with the volume-weighted average price on Nasdaq First North during the period July 25 to August 7, 2025. The initial proceeds from the issues are expected to amount to up to approximately SEK 15 million.

The Directed Share Issues entail an initial dilution of approximately 28.5% for existing shareholders but also represent a strategic step to strengthen the capital base and broaden the ownership structure in the long term. By bringing in a group of external investors with financial capacity and a long-term interest, the shareholder base is expected not only to become more robust but also potentially more engaged in the Company’s continued development.

For existing shareholders, the arrangement means that their ownership stake can be partly preserved through the planned distribution of free warrants, provided the extraordinary general meeting approves the proposal. If these warrants are fully exercised, the additional dilution will be limited to a maximum of approximately 5.5%. Listing the warrants will give existing shareholders both the opportunity to increase their holdings by purchasing warrants and the potential to realize a return through the possible sale of warrants.

From a risk perspective, the transaction is advantageous compared to other alternatives. The dilution could have been higher if the rights issue earlier in 2025 had been fully subscribed, while the current issue is being carried out on market terms without deep discounts, reducing the risk of negative share price impact.

In the long term, the Directed Share Issues are an effective solution to the financial gap that arose after the most recent rights issue earlier in 2025, where only 52.5% was subscribed by existing shareholders and a total of 57.5% including guarantees. The Directed Share Issues and the opportunity for existing shareholders to participate in a warrant program are considered a balanced solution that strengthens both the capital structure and the Company’s strategic flexibility going forward. In our latest analysis update following the Q1 2025 report in May, we estimated that Svenska Aerogel would need to raise an additional approximately SEK 40–45 million before the Company reaches a revenue level sufficient for self-financing. Given the Directed Share Issues, the financing need going forward is thus reduced.

Further, Svenska Aerogel announced on August 13 that the first order to Matrix Brands, with which the Company signed a five-year supply agreement in November 2024, has now been completed. The order comprises 1.5 tons of aerogel material specially developed for the customer. The material is intended to be included in Matrix Brands’ production of its personal care product, which is being prepared for launch in 2026. The Company did not disclose any order value, but the order confirms Svenska Aerogel’s capacity to carry out production on an industrial scale.

Carlsquare Equity Research intends to publish an updated analysis of Svenska Aerogel following the Q2 2025 report, which will be released on August 28.

Read our latest research report on Svenska Aerogel here.

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