Realheart finalizes warrant exercise, boosting share capital and funding

SWEDEN – Scandinavian Real Heart AB (publ) has announced the successful outcome of its warrant exercise for Series TO 3, marking a significant milestone in its recent fundraising and capital management efforts.

The exercise period, which was part of a larger rights issue conducted between June 12 and July 5, 2024, has resulted in a notable subscription of shares that will support the Company’s ongoing operations and growth strategy.

During the subscription period, a total of 31,998,400 warrants were exercised, leading to the subscription of 159,992 new shares. This figure represents approximately 58 percent of the total 54,910,406 issued warrants.

The subscription price was set at SEK 12.98 (US $1.34) per share, a pricing mechanism designed to reflect 70 percent of the volume-weighted average price (VWAP) of Realheart’s share on the Nasdaq First North Growth Market during the measurement period.

Consequently, the exercise will generate approximately SEK 2.1 million (US $0.22 million) in proceeds for the Company, before accounting for any issue costs. The exercise period for these Series TO 3 warrants officially ran from March 3 to March 31, 2025.

With the successful subscription of 159,992 shares, the overall share capital of Realheart has experienced a measurable increase.

Prior to the exercise, the Company had 2,153,330 shares outstanding; this number now rises to 2,313,322, reflecting an increase of 159,992 shares.

Correspondingly, the share capital has grown by SEK 801,559.92, (US $82,717.76) moving from SEK 10,788,183.30 (US $1.1 million) to SEK 11,589,743.22 (US $1.196 million).

For existing shareholders who did not participate in the warrant exercise, the dilution is estimated at roughly 7 percent of both the total number of shares and the voting rights within the Company.

The process for converting the exercised warrants is straightforward. Upon exercise, the warrants are replaced with interim shares.

These interim shares remain in place until they are officially registered with the Swedish Companies Registration Office.

Once registration is complete, the interim shares will automatically convert into ordinary shares, a process expected to be finalized approximately two banking days after registration.

This seamless conversion ensures that all new shares are fully integrated into the Company’s capital structure, reinforcing Realheart’s financial base and supporting future strategic initiatives.

This successful warrant exercise not only demonstrates robust investor interest in Realheart’s business model and prospects but also provides the Company with additional funds to advance its strategic goals.

The raised capital is expected to facilitate further growth, support ongoing projects, and potentially enhance shareholder value in the long term.

Moreover, the transaction underlines the effectiveness of the Company’s rights issue strategy and its ability to mobilize market confidence even in a competitive and evolving financial landscape.