Gaussin launched a capital increase of €2.5m
Gaussin launched a capital increase of €2.5mFINANCING ISSUE
FACT
Gaussin launched a capital increase of €2.5m at €0.14 per share, namely c.18m new shares.
In accordance with the decisions taken by the boards of directors on 16 January 2018, making use of the delegations given by the EGM on 15 June 2017, it was decided to proceed with reserved capital increases, with a subscription period expiring on the 30 January 2018.
All subscriptions were received before the expiry of the subscription period. The final completion of these capital increases has been noted by the boards of directors meeting on 18 January 2018 and 25 January 2018.
As a result of the capital increases and the exercise of part of the convertible bond, the capital is now composed of 111m shares at the end of January 2018.
ANALYSIS
Based on the fact that we were expecting something like 78m diluted shares (average) at the end of 2017 vs 70m realised, this will have a dilutive impact on EPS (lower number of shares for an unchanged loss expected). Moreover, we expected for the end of 2019 something like 150m average diluted shares (because of c.€5m capital increases at c.€0.15 per share expected in 2018 and €2.5m expected in 2019 at €0.15, namely respectively c.33m and c.17m new shares as well as the conversion of the remaining convertible bonds at €0.15) and we still expect the number of shares to be something like 150m by 2019. We wait for Gaussin’s annual results before reviewing our model, especially on the cash generation side.
IMPACT
The changes discussed above will have a minor impact on our valuation. This will mainly be dilutive on EPS by about €-0.02 per share: 2017 expected EPS will hence move from €-0.11 to €-0.13.
Should Gaussin raise more than €5m of equity over the FY2018 and not been able to be cash breakeven by mid 2019, it would have a downside impact on our valuation.
Gaussin SA. Gaussin SA is a France-based company that is principally engaged in the design, manufacturing and marketing of industrial and port trailers and self-propelled barges. The Company manufactures trailers and other transport solutions for use in the industrial sector and the shipping and aviation industries. Gaussin SA sells and leases its products to clients and also provides after-sales services and replacement parts. It is present in such markets as transportation, raw materials and manufacturing, as well as the environment. In addition, the Company offers various services, including audit, rental, training, credit, maintenance, and 24 hours servicing. Gaussin is present through sales networks throughout the world. The Company operates through a number of direct and indirect subsidiaries, including Event, Leaderlease SA, SCI Hall 7, SCI Hall 8, and affiliated companies, such as Metalliance, Sofimmob and Triangle SCES Industrie.
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