Press release: Swedish Automobile Issues Subscription Notice Under GEM Facility

Trollhättan, Sweden: Swedish Automobile N.V. (Swan) announces that it issued a subscription notice for 3 million shares under the current EUR 150 million equity facility between Swan and GEM Global Yield Fund Limited. The exact number of shares to be issued and the price thereof will depend on the pricing period which commences today.

In light of recent developments, North Street Capital, LP will not subscribe for 2.3 million shares in Swan and revoked its commitment to provide a loan of USD 60 million to Saab Automobile.

Where to Turn Next

Remember this Press Statement from a month ago?


Zeewolde, The Netherlands, 16 May 2011 – Spyker Cars N.V. (Spyker) announces today that it issued a subscription notice for 1 million shares under the current EUR 150 million equity facility between Spyker and GEM Global Yield Fund Limited. The exact number of shares to be issued and the price thereof will depend on a 15 day pricing period, which commences today.

You read that right, Saab has a credit card essentially for up to EUR 150 million when times get really tough. They initiated the agreement as backup financing when they purchased the company from GM, and after this latest share issue if my math is correct they still have most of it left.  It’s expensive debt, it involves issuing shares with a 15 day pricing period, but it’s cash nonetheless to at least stop the bleeding. I wish Saab had tapped into this or something similar sooner to prevent today’s situation, but it seems that only a few legal documents are the culprit holding up the property sale deal, and they misjudged the timing on it’s finalization. From all indications, it appears to be a big mistake at legal on this one.

According to TTela, Victor Muller is in the US right now looking for immediate liquidity injections. GEM is based out of New York. Something tells me it might not even be the GEM funds that Victor ends up finding the best deal with this time around, but for all of you out there who suggest Saab is out of lifelines, I’d ask you to remember this major one.

Thursday Snippets– Beatles Edition (updated)

The pace of news articles from competing media agencies, be it Dagens Industri or the Wall Street Journal, has been blistering this past week (so fast in fact that I updated this with a late breaking New York Times article). Where there’s usually one or two Saab news articles that make the rounds each week, every morning we’re greeted by the latest updates of old headlines from the day before spun a new way. In an attempt to make it all more consumable and go down easier, I’ve compressed it all into one long snippets, organized around each player and their interest in Saab. Rather than regurgitate news (anyone can set up a news alert for Saab and read what pops up), we’re trying to make it easier for you to find all your Saab goodness in one place while we reflect on whatever insight we’re hearing from inside Saab.

We’d also like to lighten the mood a bit. As I said in the last snippets, in snippets I want to give you a quick overview of what you can expect. This time, instead of doing it graphically I decided that the Beatles might help me out. Let’s just say the thought hit me while on my morning jog with a certain playlist 😉 The lyrics certainly fit.

Read moreThursday Snippets– Beatles Edition (updated)

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