Subject to approval at an Extraordinary General Meeting on 9 August 2024, MapsPeople aims to raise gross proceeds of DKK 30-36m in new capital from existing and new shareholders. The capital raise will be structured as a rights issue, offering new shares with pre-emptive rights for existing shareholders at a subscription price of DKK 2.00 per 1 new share. In yesterday’s trading (25 July 2024), MapsPeople’s share closed at DKK 2.48. Approx. 82% of the total offer size (DKK 36m) has been secured through irrevocable subscription undertakings from existing shareholders and guarantee commitments from certain new investors, implying that MapsPeople has secured gross proceeds of at least DKK 30m. The background for the offering is twofold.  First, the additional capital will provide additional headroom to execute its operational plan and maintain its growth rates. As costs have been reduced over the past 12 months, including spending in sales and marketing by almost 50%, the company has been challenged to maintain high growth rates. As a result, MapsPeople must selectively invest in more lead generation and sales capacity in a capital-efficient way.  Second, MapsPeople has been presented with multiple smaller M&A opportunities that could accelerate topline growth and lead to cost synergies. Potential acquisitions are expected to be financed partly by issuing new MapsPeople shares and partly by cash from this capital raise. Specifically, DKK 20-25m of the gross proceeds will be used for acquisitive growth according to the announcement.   In addition to the rights issue, the board has approved that the management team complete negotiations on its debt, ensuring improved terms on approx. 50% of the company’s long-term debt. This will increase the duration of the debt and ensure interest-only payments for the rest of 2024 and 2025. Read the full announcement here: https://www.inderes.dk/releases/mapspeople-as-announcement-regarding-the-offering-of-new-shares-with-pre-emptive-rights Disclaimer: HC Andersen Capital receives payment from MapsPeople for a Digital IR/Corporate Visibility subscription agreement. /Kasper Lihn 08:05, 26 July 2024.

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