REC Silicon - Private placement successfully co...

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Fornebu, Norway - April 9, 2019: Reference is made to the stock exchange release from REC Silicon ASA ("REC" or the "Company") published on April 9, 2019 regarding a contemplated private placement. The Company is pleased to announce that it has raised approximately NOK 170 million in gross proceeds through a private placement (the "Private Placement") of 254,381,870 offer shares (the "Offer Shares"), at a price per share of NOK 0.67 (the "Subscription Price"). The Private Placement took place, and the Subscription Price has been set, through an accelerated bookbuilding process managed by Sparebank 1 Markets as sole manager after close of markets on April 9, 2019. The Private Placement was substantially oversubscribed.

The net proceeds from the Private Placement will be used to strengthen and contain the Company's liquidity situation until access to the Chinese polysilicon market is restored. Specifically, the proceeds will be used for (i) non-recurring restructuring costs of USD 3.7 million to curtail and shut down Moses Lake FBR production, unless access to the Chinese market is restored, (ii) settle the remaining payments to the Yulin JV of USD 3.1 million and USD 5.2 million and (iii) for general corporate purposes.

The Offer Shares will be settled with existing and unencumbered shares in the Company that are already listed on the Oslo Stock Exchange, pursuant to an agreement between SpareBank 1 Markets AS, the Company and Umoe AS. The shares delivered to the subscribers will thus be tradable upon delivery, expected May 10, 2019.

Subject to approval by the Company's AGM, Umoe AS has undertaken to use the full proceeds received from the settlement of the Private Placement to acquire new A-shares in the Company. All of the new A-shares will be converted into ordinary shares as soon as practically possible, expected within eight (8) weeks from the settlement date.

Completion of the Private Placement is subject to approval by the annual general meeting ("AGM") of the Private Placement, the issue of the new A-shares and a share capital reduction.

The board of directors of the Company has resolved to propose that the AGM resolves to authorize the board to carry out a subsequent offering of up to 50,000,000 new shares towards the Company's shareholders as of April 9, 2019 (as documented by the shareholder register in the Norwegian Central Securities Depository (VPS) as of the end of April 11, 2019) who were not allocated shares in the Private Placement or participated in the pre-sounding and who are not resident in a jurisdiction where such offering would be unlawful or, for jurisdictions other than Norway, would require any prospectus, filing, registration or similar action. Such shareholders will be granted non-transferable preferential rights to subscribe for, and, upon subscription, be allocated new shares. The subscription price in such subsequent offering will be the same as the subscription price in the Private Placement.

The waiver of the preferential rights inherent in a private placement is considered necessary in the interest of time and successful completion. Taking into consideration the time, costs and expected terms of alternative methods of the securing the desired funding, as well as the subsequent offering considered, the board has concluded that the conclusion of the Private Placement on acceptable terms at this time is in the common interest of the shareholders of the Company and that the Private Placement complies with the equal treatment obligations under the Norwegian Securities Trading Act and Oslo Børs' Circular no. 2/2014.

The following primary insiders of the Company have been allocated Offer Shares in the Private Placement, each such Offer Share allocated at the Subscription Price:

Umoe AS, was allocated 58,380,639 Offer Shares. After completion of the Private Placement, Umoe AS will own 583,840,870 shares in the Company, corresponding to a shareholding of approximately 23% before the subsequent offering and the issue of new A-shares to Umoe AS, as anticipated above.

For further information, please contact:
James A. May II, Chief Financial Officer
Phone: [phone]
Email: [e-mail]

Nils O. Kjerstad, IR Contact
Phone: [phone]
Email: [e-mail]

About REC Silicon:
REC Silicon is a leading producer of advanced silicon materials, delivering high-purity polysilicon and silicon gas to the solar and electronics industries worldwide. We combine over 30 years of experience and proprietary technology with the needs of our customers, with annual production capacity of more than 20,000 MT of polysilicon from our two US-based manufacturing plants. Listed on the Oslo Stock Exchange (ticker: REC), the Company is headquartered in Fornebu, Norway.

For more information, please visit: www.recsilicon.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Important information:
The release is not for publication or distribution, in whole or in part directly or indirectly, in or into Australia, Canada, Japan or the United States (including its territories and possessions, any state of the United States and the District of Columbia).

This release is an announcement issued pursuant to legal information obligations, and is subject of the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act. It is issued for information purposes only, and does not constitute or form part of any offer or solicitation to purchase or subscribe for securities, in the United States or in any other jurisdiction. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. The Company does not intend to register any portion of the offering of the securities in the United States or to conduct a public offering of the securities in the United States. Copies of this announcement are not being made and may not be distributed or sent into Australia, Canada, Japan or the United States. Theissue, exercise, purchase or sale of subscription rights and the subscription or purchase of shares in the Company are subject to specific legal or regulatory restrictions in certain jurisdictions. Neither the Company nor the Manager assume any responsibility in the event there is a violation by any person of such restrictions.

The distribution of this release may in certain jurisdictions be restricted by law. Persons into whose possession this release comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. SpareBank 1 Markets AS is acting for the Company and no one else in connection with the Private Placement and any subsequent offering and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients or for providing advice in relation to the Private Placement and any subsequent offering and/or any other matter referred to in this release.

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This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: REC Silicon ASA via Globenewswire