Equity Research Lokotech: secures NOK 125 million through rights issue

Lokotech Group AS (“Lokotech” or “the Company”) announced on March 3, 2025, that the Company is carrying out a partially guaranteed rights issue of 200 MNOK to secure funding for the mass production of Hashblade. The rights issue is secured up to 62.5%, equivalent to 125 MNOK.

The rights issue, which is expected to take place between May 7 and May 21, 2025, is conditional on approval at an extraordinary general meeting on April 30, 2025. Given the company’s ownership structure, we see the approval at the extraordinary general meeting as a mere formality. The subscription price will be based on the Volume Weighted Average Price (VWAP) 3 days prior to the extraordinary general meeting, with a 35% discount added. Further, subscribers in the rights issue will receive warrants exercisable from April 1 through April 15 2026. The strike of the warrants will also be based on 3-days VWAP prior to the exercise period.

As a result of the rights issue, Lokotech will soon be able to commence mass production of its Scrypt ASIC, Hashblade, providing an opportunity to capitalize on all pre-orders the company has already received. Perhaps even more importantly, the rights issue also enables the company to proceed with the framework agreements for the delivery of Hashblade that have been signed since the beginning of the year.

The rights issue significantly reduces the financing risk mentioned in our initiational research report from December 2024, and we plan to publish an updated analysis shortly.

Read our Initial Equity Research report on Lokotech here.

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