Ovzon AB (publ) (“Ovzon” or “the Company”) today announces that the Company is in ongoing negotiations with SSC regarding an order of SATCOM-as-a-Service including Ovzon mobile satellite terminals, with delivery in 2024, with an expected order value of approximately 10 MUSD. The announcement is made due to the Company’s assessment that the negotiations are in the final stages and that a binding agreement is expected to be entered into in the near future. However, it is not certain that a binding agreement regarding the order will be entered into before the subscription period in the Company’s upcoming rights issue commences on November 22, 2023. However, Ovzon assesses that the information regarding the order, given the ongoing final negotiations, is of importance to existing shareholders and potential investors in the upcoming Rights Issue.
On October 20, 2023, The Board of Directors of Ovzon decided to carry out a new share issue with preferential rights for the Company’s existing shareholders of approximately SEK 250 million (the “Rights Issue”). The Rights Issue was subsequently approved by an Extraordinary General Meeting held on November 15, 2023. The subscription period in the rights issue is expected to commence on November 22, 2023 and last until and including December 6, 2023. Due to the upcoming Rights Issue, the Company today announces that final negotiations are ongoing with SSC regarding an order for SATCOM-as-a-Service including Ovzon On-The-Pause and Ovzon On-The-Move terminals. The expected order value is approximately 10 MUSD and the majority of the delivery is expected in 2024. The Company’s policy regarding disclosure concerning received orders is that public announcements are made only when a binding agreement has been entered into. However, given the final stage of these negotiations and due to the timing of the upcoming Rights Issue, the Company deems it appropriate, in this specific case, to provide public disclosure before a binding agreement has been finalized. This decision is justified by its importance to existing shareholders and potential investors in the upcoming Rights Issue.
The company would like to emphasize that the receipt of the order before the beginning of the subscription period in the Rights Issue remains uncertain. Additionally, as is inherent in all business negotiations, there is a potential risk of interruptions that may prevent the negotiations from executing a final order.