Storskogen’s CEO rearranges his shareholding
In conjunction with the IPO of Storskogen Group AB (“Storskogen”) in October 2021, Daniel Kaplan took out bank loans to finance the acquisition of additional shares in Storskogen. As collateral for these loans, shares of series A and series B in Storskogen were pledged. Parts of these loans will be repaid and therefore parts of the pledge will be released. The released portion of Daniel Kaplan’s shares of series B will be transferred to a company wholly owned by Daniel Kaplan (Wombat Investments AB) and re-pledged as collateral for a new loan.
Following the partial repayment of the existing loans and the rearrangement of the ownership of the shares of series B, Daniel Kaplan owns (including through companies) an unchanged number of shares in Storskogen.
"Rearranging my ownership and rolling over the existing loans is a way to maintain my entire ownership without selling a single share. The reason I pledged the shares to start with was to be able to buy more shares in connection with the IPO. It was entirely driven by my belief in and commitment to the company and its long-term potential", says Daniel Kaplan, CEO and major shareholder Storskogen.
In order to enable the new loan, Daniel Kaplan has acquired put options and issued call options in a so-called equity collar arrangement. This means that the re-pledged shares of series B may be sold at a predetermined price when the new loan falls due. Daniel Kaplan's ownership of shares of series B may in the future be reduced if the put options or the call options are exercised. An equity collar means securing the possibility of obtaining a certain price for the shares in the future by acquiring a put option at a lower price than the current share price and issuing a call option at a higher price than the current share price. This means that if, at the future option date, the price of the shares has fallen to the level of the put option, the shares are sold whereby the loan is repaid. The call option is issued to finance the acquisition of the put option and limits the upside for the issuer of the call option (i.e. in this context Wombat Investments AB) by giving the call option holder the right to buy shares at a predetermined price. If, at the future option date, the share has risen in value above the call option level, the shares will be sold, the loan will be repaid and the call option holder receives the excess value of the stock. This arrangement reduces financing costs and ensures that the new loan can always be repaid at the future maturity date regardless of the movement in the share price.
Daniel Kaplan’s ambition is to repay the outstanding parts of the existing loans through additional equity collar arrangements. The execution of additional equity collar arrangements is, inter alia, dependent on the possibility to source put options as security for the equity collar arrangement.
The abovementioned transactions will be reported to the Swedish Financial Supervisory Authority’s PDMR register.
For more information, contact:
Michael Metzler, Press Officer
+46 73 305 59 55