Enviro completes Michelin share offer
Recycling firm Scandinavian Enviro Systems AB (Enviro) has completed a share issue worth 116 million Swedish Krone to Michelin. The issue is part of the letter of intent announced on 15 April 2020 and signals a “long-term strategic partnership between the two companies”.
Michelin’s investment in Enviro was made by way of a directed share issue (private placement) of a total of 116,165,223 shares at a subscription price of Swedish Krone (SEK) 0.28 per share, whereby, the share capital was increased by SEK 4,646,608.92. In total, the share issue generated proceeds of approximately SEK 32.5 million before transaction costs. As a result 20 per cent of the Enviro is held by Michelin and Michelin the largest shareholder.
The next steps include: a project to build a factory and to industrialize the technology (the location of the plant will be confirmed at a later date); a joint supply agreement between Michelin and Enviro; and a final agreement for a strategic partnership following the letter of intent, which is expected to be completed by mid 2020.