Bong AB: Bong’s new issues successfully completed – new equity of about SEK 275 million and new convertible loan of SEK 75 million

Regulatory News:

Bong AB (STO:BONG):

The new issues that were resolved by the board on 16 June 2013, and approved by the general meeting on 17 July 2013, have now been successfully completed.

In total, approximately 47 per cent of the rights issue were subscribed for with subscription rights and an additional approximately 4 per cent were subscribed for without subscription rights. The remaining approximately 49 per cent were allotted to those parties that have entered underwriting agreements with the company, in relation to made undertakings. Accordingly, in total 69,923,980 new shares were subscribed for in the rights issue, whereby Bong is provided with approximately SEK 126 million before transaction costs.

Further, the set-off issues to Holdham S.A. and the company’s two largest lending banks have been completed. Accordingly, in total 69,254,629 new shares were subscribed for with payment by way of set-off of claims on the company of approximately SEK 150 million.

As a result of the rights issue and the set-off issues, Bong’s share capital is increased with SEK 208,767,913.50 to SEK 234,989,406.[1] The number of shares is increased with 139,178,609 to 156,659,604 shares. Trading in the new shares on NASDAQ OMX Stockholm is expected to commence on or about 2 September 2013.

The convertible bonds issue to institutional and qualified investors has also been completed and the convertible loan that thereby is raised by the company amounts, as previously announced, to a nominal amount of SEK 75 million. If converted in full on the present terms, an additional 27,272,727 new shares of the company will be issued.

About Bong

Bong is a leading provider of specialised packaging and envelope products in Europe, offering solutions for distribution and packaging of information, advertising materials and lightweight goods. Important growth areas in the Group are the Propac packaging concept and Russia. The Group has annual sales of approximately SEK 3 billion and about 2,100 employees in 15 countries. Bong has strong market positions in the majority of key markets in Europe, and the Group sees interesting possibilities for continued expansion and development. Bong is a public limited company whose stock is quoted on the NASDAQ OMX Stockholm (Small Cap).

Bong AB (publ) discloses the information in this press release pursuant to the Securities Markets Act. The information was provided for public release on 21 August 2013 at 8 am CET.

Important information

This press release does not constitute an offer of any securities of Bong. No transaction described in this press release is directed to shareholders or other investors domiciled in the United States, Australia, Hong Kong, Japan, Canada, Singapore, South Africa or New Zealand, or in any other country where participation in such transaction would require additional prospectuses, registration or other measures other than those pursuant to Swedish law or would conflict with regulations in such country. No shares, interim shares, subscription rights, convertibles or other securities issued by Bong have been or will be registered in accordance with the United States Securities Act of 1933, or in accordance with any securities legislation in any state of the United States or any province in Canada. Accordingly, no new shares, interim shares, subscription rights, convertibles or other securities issued by Bong may be transferred or offered for sale in the United States or Canada, other than in such exceptional cases that do not require registration. The transactions described in this press release are directed only at (i) persons who are outside the United Kingdom; (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended); or (iii) persons to whom it can otherwise lawfully be directed at.

[1] The general meeting on 17 July 2013 also resolved that the share capital shall be reduced by SEK 148,588,457.50 for transfer to a fund to be used pursuant to a resolution by the general meeting. The reduction is made without cancellation of shares, whereby the share’s quota value is decreased to SEK 1.50.

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