New share issue to help raise quick cash for Saab

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.

New share issue to help raise quick cash for Saab

“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 trading on the Amsterdam stock exchange on Monday.

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Former Swedish Saab bosses appear in court

Swedish car maker Saab's former CEO Jan Åke Jonsson and the firm's former head lawyer Kristina Geers have appeared in court in Vänersborg in west Sweden, accused of falsifying financial documents shortly before the company went bankrupt in 2011.

Former Swedish Saab bosses appear in court
Saab's former CEO Jan Åke Jonsson. Photo: Karin Olander/TT
The pair are accused of falsifying the paperwork at the height of the Swedish company's financial difficulties at the start of the decade.
A third person – who has not been named in the Swedish media – is accused of assisting them by issuing false invoices adding up to a total of 30 million kronor ($3.55m).
According to court documents, the charges relate to the firm's business in Ukraine and the paperwork in question was signed just before former CEO Jan Åke Jonsson resigned.
Both Jonsson and Saab's former head lawyer Kristina Geers have admitted signing the papers but denied knowledge of the Ukranian firm implicated in the case.
All three suspects deny all the charges against them.

Saab's former head lawyer Kristina Geers. Photo:  Björn Larsson Rosvall/TT
Saab filed for bankruptcy at the end of 2011, after teetering on the edge of collapse for nearly two years.
Chief prosecutor Olof Sahlgren told the court in Vänersborg on Wednesday that the alleged crimes took place in March 2011, when Saab was briefly owned by the Dutch company Spyker Cars.
It was eventually bought by National Electric Vehicle Sweden (Nevs), a Chinese-owned company after hundreds of staff lost their jobs.
The car maker, which is based in west Sweden, has struggled to resolve serious financial difficulties by attracting new investors since the takeover.
In October 2014 it announced it had axed 155 workers, close to a third of its workforce.
Since 2000, Saab automobile has had no connection with the defence and aeronautics firm with the same name. It only produces one model today, the electric 9-3 Aero Sedan, mainly targeting the Chinese market.