We advised Baltic Horizon Fund in arranging three private placements of fund units in April and May 2019. The total proceeds received by the client amounted to EUR 25.4 million.
First non-public offering by the fund
“We are very pleased with the exceptionally high interest in the private placement of new Baltic Horizon fund units. The new capital for this fund was raised mainly from several new Baltic and Swedish institutional investors. We are aiming to strategically deploy the newly raised funds in the Baltic capital cities shortly,” commented Tarmo Karotam, Fund manager of Baltic Horizon, after the first, over-subscribed issue.
The transaction was the first non-public offering arranged by the fund. New units were offered with a price different from the NAV of the fund unit, in accordance with the resolution taken by the general meeting of the unit-holders. The offering and issuance of the units was carried out by using the 20% exemption of the Prospectus Regulation ((EL) 2017/1129 art 1(5) a)), and thus, no listing prospectus was required. Sorainen advised the client throughout the project, including assistance in arranging general meeting of unit-holders to determine the price of the offer units, as well as arranging the issuance, settlement and listing of the new units and related communication with all stake-holders and disclosure advice. As the new units were also admitted to trading on Nasdaq Stockholm, the assistance included advising on cross-border settlement matters and related communication.