Capital Raises
Advisory services to ensure the best possible capitalization
When raising capital for businesses, we design a tailored capitalization plan based on thorough analysis to meet the company’s unique needs. We complement this with our dedicated investor network, comprised of some of the most active investors in the micro-cap environment in Scandinavia. By using a toolbox consisting of different transaction approaches, we ensure optimal capitalization for the company.
Rights Issue
A rights issue is an Issue that offers existing shareholders the opportunity to purchase additional shares of the company at a specified price, typically at a discount to the current market price. This method allows shareholders to maintain their proportional ownership in the company and provides them with the first right to invest in new equity offerings before they are made available to the broader market.
Rights issues are often used by companies to raise capital for various purposes such as funding growth initiatives, reducing debt, or pursuing strategic acquisitions, while also ensuring that existing shareholders have the chance to participate in the company’s expansion plans.
Debt Financing
In certain situations, it may be that companies need capital but do not want to issue shares. In that situation, the company can choose to raise capital by taking out a loan. At Gemstone, we’re experts in helping businesses raise the loan that fits their needs.
This includes, for example, convertible loans, where the lender has the option to convert the loan amount into shares in the company at a later date and under specific conditions, or bridge financing, where capital is temporarily raised through a loan, which is then offset in shares or repaid through a subsequent capitalization later on.
Directed Issue
Directed issues are, as implied in the name, directed to a certain group of investors. These investors are usually external investors with strategic importance for the company. This also means that the existing owners’ pre-emptive right to subscribe for shares in the issue is waived.
In addition to the ability to bring external investors with strategic advantages into the company’s ownership, another advantage of a directed issue is that it is much faster to implement than a right issue.
Want to hear more?
Don’t hesitate to reach out. Let’s discuss how our services can assist you and explore what you can learn from partnering with us.
