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Bulgaria's Sin Cars Industry to launch up to 8 mln euro cap hike

Bulgaria's Sin Cars Industry to launch up to 8 mln euro cap hike Sin Cars Industry's L City Koffer S model. Source: Sin Cars Industry.

SOFIA (Bulgaria), August 16 (SeeNews) - Bulgarian electric vehicle (EV) manufacturer Sin Cars Industry [BUL:SIN] said on Tuesday that its board approved a new share issuance seeking to increase the company's share capital to up to some 34.2 million levs ($17.8 million/17.5 million euro) from 20.5 million levs.

The planned offering will consist in the issuance of up to 13,695,779 new voting shares of 1 lev in par value each on the BEAM market of the Bulgarian Stock Exchange, Sin Cars Industry said in a bourse filing. The shares will be priced at 1.14 levs apiece.

The capital increase will be declared successful if no less than 2.5 million new shares are subscribed for.

Current investors, as well as those who purchase company shares five days after the publication of the capital increase notice on the BEAM market, will receive rights in order to be able to subscribe for new shares, to the tune of thee rights in exchange for two new shares. There will be 20,543,669 new rights issued in total.

The capital increase is subject to an application for approval by the BEAM market of the BSE.

In May, Sin Cars Industry shareholders approved changes to its articles of association, which allowed the board of directors to increase the capital of the company up to a total of 100 million levs within five years of being adopted. The board will also be able to approve one or more issuances of shares or convertible bonds, not exceeding the above-mentioned amount.

As first announced in March, the recently approved move enables Sin Cars Industry to increase its capital by issuing new ordinary or preferred shares, converting retained company earnings into shares, converting bonds into shares and issuing new shares by exercising warrants.

In late June, Bulgarian lawmakers increased to 8 million euro ($8.12 million) from 3 million euro the maximum amount of funds that a company can raise on the Bulgarian Enterprise Accelerator Market (BEAM) segment of the BSE.

In the same month, the Bulgarian EV maker partnered with Dutch company Johan Kraan Group BV with the aim of delivering production worth 5 million euro to the local market in 2023.

Shares in Sin Cars Industry were trading 3.91% higher at 0.93 levs as at 1521 CEST on Tuesday.

(1 euro = 1.95583 levs)

($ = 0.9850 euro)