Saab-owner to issue 4 million new shares
Monday, August 15, 2011
STOCKHOLM (AP) — The owner of Sweden’s Saab is issuing new shares under a (euro) 150 million ($214 million) equity facility to keep the troubled car maker afloat.
Swedish Automobile, or Swan, said Monday it is issuing 4 million new shares under an existing agreement with GEM Global Yield Fund Limited.
GEM will buy the shares at market value, which would give Saab around (euro) 4.1 million kronor ($5.8 million) at the current share price.
Saab, which has struggled to find funding to pay wages and get its production going again after months of standstill, said it will continue its discussions with parties to obtain further funding.