Biofrigas Sweden AB (“Biofrigas” or the “Company”) carries out a rights issue of units amounting to a minimum of approximately SEK 7.6 million and a maximum of approximately SEK 24.7 million (the “Rights Issue”). In connection with the Rights Issue, the Company has received subscription commitments from board members and senior executives totaling approximately SEK 0.6 million, corresponding to approximately 2.4 percent of the Rights Issue. Additionally, the Company has received declarations of intent from major shareholders amounting to approximately SEK 1.3 million, representing approximately 5.3 percent of the Rights Issue. In total, the subscription commitments and declarations of intent amount to approximately SEK 1.9 million, corresponding to approximately 7.7 percent of the Rights Issue. Furthermore, the Company has received a cost-free top guarantee from Almi Invest Fond SI AB of up to approximately SEK 1.5 million, corresponding to approximately 6.1 percent of the Rights Issue. The proceeds from the Rights Issue are primarily intended to finance Biofrigas’ commercial transition. The Company has also been granted a conditional loan of SEK 2.0 million from Almi Företagspartner Väst AB (“Almi”), which will be disbursed provided that the minimum proposed subscription level in the Rights Issue is met.
You can find the Company's full press release on the Rights Issue here. The press release regarding the top guarantee from Almi Invest Fond SI AB is available here.
Biofrigas is a Swedish environmental technology company specializing in technology for the production of liquefied biogas. The Company has implemented its proprietary technology in container-based facilities, CryoSep, enabling producers such as farms and food industries to produce liquefied biogas from their organic waste streams. The liquefied biogas produced through CryoSep meets the quality standards for vehicle fuel and, with its high energy density, is particularly suited for heavy-duty vehicles and ships. In addition to its main product, liquefied biogas, the process also generates liquefied biogenic carbon dioxide, a product with numerous applications that can replace fossil-based carbon dioxide. For customers, Biofrigas’ products can generate recurring new revenue streams, cost savings, and increased self-sufficiency. Beyond new business opportunities, the technology provides access to a rich energy source that contributes to a net-zero emissions future.
The Company has strategically shifted its focus toward a commercial transition, driven by increased efforts in market expansion, sales, and partnerships. As part of its upcoming internationalization, the Company has also initiated a market push toward Germany, a natural next step to complement its Nordic home market. The commercial initiative is based on the expectation that the Company will benefit from the growing demand for liquefied biogas in industry and the transport sector, combined with climate investments, government grants, and subsidies in the sector.
In December 2023, for instance, the Swedish Parliament decided to extend and strengthen the state-funded Klimatklivet initiative with new funding until 2028. The enhancement of Klimatklivet provides tangible benefits for the Company’s customers, who can now receive up to 65% in investment support for Biofrigas’ facilities. The expectation is that the expanded and strengthened Klimatklivet will drive increased investment interest in 2024. Meanwhile, interest from the transport sector and industry has surged, with the use of liquefied biogas in Sweden growing consistently for 13 consecutive quarters. The domestic self-sufficiency rate for liquefied biogas was low at around 40% in 2022, leading to significant imports. This increasing demand is driven by multiple factors, particularly the growing production of liquefied biogas-powered vehicles by major players such as Volvo and Scania. This development signifies a positive trend toward a more sustainable and self-sufficient use of liquefied biogas within industry.
Given that the liquefied biogas market has reached a point where consumption exceeds domestic production, the investment climate is favorable with long-term investment and production incentives, and Biofrigas’ products are well-suited for the market—with its first reference facility soon to be installed—the Company is preparing to capitalize on these converging factors. The key objectives for 2024 are to drive sales growth by:
The Company assesses that the majority of the costs and investments for the core development of the CryoSep technology have already been incurred. However, additional capital is required to execute the commercial transition and to strengthen working capital to finance future operations.
Corpura Fondkommission is acting as the financial advisor in connection with the Rights Issue.
For more information contact:
Carl Kindal
Phone: +46(0)73-501 58 58
Email: carl.kindal@corpura.se
