Saab owner issues shares subscription notice

15th August 2011, Comments 0 comments

Swedish Automobile, owner of under-pressure carmaker Saab, said Monday it had issued a subscription notice for four million shares under an agreement with US-based 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," Swedish Automobile, formerly known as Spyker, said in a press release.

It said the notice was issued under a "current 150 million euro equity facility" between itself and GEM, as it continued to try and raise short-term funding to restart production at its Trollhaettan plant in Sweden.

Assembly lines have been silent on and off since April as suppliers stopped deliveries over unpaid bills.

Swedish Automobile has been seeking fresh cash since March to secure the carmaker's future through real estate deals and by entering into an agreement with Chinese distributors.

The iconic Swedish brand was saved at the last minute in early 2010 when it was bought by small Dutch firm Spyker from US giant General Motors.

The new owner had big ambitions for Saab but the carmaker, which employed some 3,700 people by the end of July, has since then lurched from one cash crisis to another.

Swedish Automobile's share price dipped by 2.68 percent to 1.05 euros in early trade on the Amsterdam stock exchange on Monday.

© 2011 AFP

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