Key points
- Bootstrap Europe exercised all its remaining Sivers Semiconductors (SIVEF) warrants on August 13, taking 1,659,015 new shares at SEK 4.53 for about SEK 7.5 million.
- Its $12 million convertible loan was already turned into 22.8 million shares in July, so the only Bootstrap debt left is a $5 million secured loan due 2029.
- Bootstrap's shares came at SEK 4.53 to SEK 4.77. SIVE trades near SEK 41.60 today, about 9x those prices.
- Sivers reports second-quarter results on August 27.
On August 13, Bootstrap Europe exercised all of the warrants it held in Sivers Semiconductors (SIVEF), subscribing for 1,659,015 new ordinary shares at SEK 4.53 apiece. The exercise raised about SEK 7.5 million, close to $0.8 million, and took the company's share count from 355,081,317 to 356,740,332.
Those warrants were the last equity-linked piece of Bootstrap's financing. In July, Bootstrap converted its entire $12 million convertible loan into 22,847,044 shares at SEK 4.77, which we covered at the time. With the convertible gone and the warrants now exercised, the only thing Sivers still owes Bootstrap is a $5 million secured loan.
Where Bootstrap's money stands now
The current setup dates to February 24, when Sivers refinanced all of its external debt into a $17 million facility with Bootstrap. It came in two parts, a $12 million convertible loan and a $5 million term loan. The convertible is now stock. The term loan is what's left.
| Bootstrap instrument | Amount | Status now |
|---|---|---|
| Convertible loan | $12 million | Converted to 22,847,044 shares on July 3 |
| Warrants | From earlier lending | All exercised, 1,659,015 shares, August 13 |
| Secured term loan | $5 million | Outstanding, due 2029 |
The loan that remains carries a 12 percent interest rate and is secured against Sivers' subsidiaries, its intellectual property and other assets. It runs 36 months from the February agreement, so it matures in early 2029, and there's a $350,000 fee due at the end. Sivers pays interest only for the first six months of the loan, then begins paying down principal.
Bootstrap did well on the equity
The 24.5 million shares Bootstrap picked up through the conversion and the warrants were priced between SEK 4.53 and SEK 4.77, levels fixed in February when Sivers traded for a small fraction of today's price. SIVE closed near SEK 41.60 in Stockholm on Thursday, about nine times what Bootstrap paid, for a market value around SEK 13 billion. The dilution from all those shares is already in the count. What changed this week is that the last of it went through.
The exercise doesn't touch the questions still hanging over the stock. Short seller Ningi Research's June revenue allegations remain unrebutted, and Rosen Law Firm and Bronstein, Gewirtz & Grossman are still soliciting shareholders for a possible class action without having filed one. Sivers publishes its second-quarter report on August 27.
Related coverage
- How Bootstrap's $12 million loan conversion and an insider lockup diluted Sivers in July
- Our original Sivers piece: the short report, the leak probe and the insider buying
- Why Sivers rose 18.86% on the FCC's Chinese transceiver ban plan
Sources
- Sivers Semiconductors / PR Newswire, Bootstrap Exercises Warrants in Sivers Semiconductors
- Sivers Semiconductors, Refinances Group Debt Facilities with Bootstrap Europe
- Sivers Semiconductors, Lender Bootstrap Europe Exercises Conversion Right
- StockAnalysis.com, SIVE stock quote
This is general market commentary and opinion, not investment advice. Markets can go down as well as up, and you can lose money. Always do your own research and consider speaking with a licensed financial professional before making any investment decision.
