Norwegian company Saga Pure ASA, formerly known as Saga Tankers, has entered into agreements to subscribe for NOK 15 million ($1.76 million) in a private placement in Bergen Carbon Solutions AS (BCS).
As disclosed, the company contemplates raising NOK 80 million in new equity and intends to apply for trading on Euronext Growth Oslo.
“Bergen Carbon Solutions uses innovative … technologies to produce carbon nanofibers from captured CO2. The production is emission free and we look forward to continue to support the team in the commercialization of this truly unique technology as a listed entity,” Bjørn Simonsen , CEO of Saga and member of the Board of Directors of Bergen Carbon Solutions, commented.
In December 2020, Saga acquired a 21.4 per cent stake in Bergen Carbon Solutions, announcing the subscription of NOK 30 million in a NOK 40 million private placement of new shares in Bergen Carbon Solutions.
The Board of Directors of BCS has entered into a mandate agreement with Fearnley Securities AS and Norne Securities AS in connection with a NOK 80 million share offering in the company and a contemplated subsequent stock exchange introduction on Euronext Growth Oslo.
Saga Pure has entered into agreements to subscribe for and be allocated shares for NOK 15 million in the share offering.
Bergen Carbon Solutions will use the net proceeds from the private placement to build a commercial scale production unit, strengthen the company’s working capital and for general corporate purposes.
Specifically, BCS uses patented technologies to produce carbon nanofibers (CNF) from captured CO2. CNF is lighter than plastic, stronger than steel, leads electricity better than copper and has a broad range of application areas. The product is also emission-free.
The CNF market is considered to be underdeveloped, with immense growth potential. It is expected to grow by 20-40% yearly towards 2024.