Start-ups like Phase Holographic Imaging needs money, often lots of money to develop. There are different ways to get the money. First option: bank-loan. Unfortunately, this is often at a high interest rate since there are few assets and low security in a start-up – and then the company will fight to pay the loan back. In general, borrowed money makes it harder to achieve break even. Next two options are to ask the current investors or the public for the money. When they ask the current owners, it is a share issue with preferential rights – and a public issue when shares are offered to whoever wants to invest. The fourth possibility is to find an investor or a group of investors willing to invest in the company and make a private placing. So funding comes from either the bank, the current owners or new investors.
Friday January 29th Phase Holographic announced a double-issue totalling 40 MSEK. 25 MSEK will come in through a preferential rights issue and 15 MSEK via a private placement. The issue price for both is 23 SEK. In the preferential rights issue the current owners can buy 1 new share for each 9 shares they have. If an investor holds 900 shares, he or she is entitled to buy 100 new shares at a price of 23 SEK each. Investors must own shares Wednesday February 24th to have this right to new shares. Continue reading →