HAUGESUND, NORWAY: Reach Subsea announced that Wilhelmsen New Energy AS has entered into an investment agreement whereby Wilhelmsen has agreed to become a 21% shareholder in Reach Subsea through subscribing for NOK 150 million in a directed private placement.
The investment agreement forms part of a broader partnership, which will see the launch of the Reach Remote Unmanned Surface Vehicles (USVs).
Under the Agreement, Wilhelmsen New Energy has agreed to subscribe for, and be allocated, 46,126,567 new shares in Reach at a subscription price of NOK 3.25 per share.
The agreement also includes the issuance of warrants, whereby Wilhelmsen will receive the right to subscribe for and be allocated an additional 44,766,684 new Reach shares at NOK 4.00 per share. The warrants have a duration of three years, can be exercised at any time, and will if fully exercised provide Reach with an additional NOK 179 million in new growth equity.
The private placement and the issuance of the warrants will be put forth for approval to an extraordinary general meeting in Reach to be held on or about 14 March 2022.
The Reach Remote concept, operationalized in cooperation with Kongsberg Maritime and Massterly, was launched early 2021 with a support grant from Innovation Norway. Reach is on track for the delivery of its two first Reach Remote USVs in 2023. By 2025, the company’s ambition is to provide a full portfolio of subsea services from a low-emission, cost-effective remote and autonomous fleet.
Reach now has a term sheet in place with Sparebank 1 SR-Bank for a NOK 200 million debt facility for the first two USVs. Combined with the NOK 150 million private placement, the company will be able to embark on the construction and commercialization phase of Reach Remote.
“We are very pleased to welcome an established industry player such as Wilhelmsen onboard as a strategic partner. Wilhelmsen has been a pioneer in driving autonomous and remote marine operations. By combining our core maritime competencies, global footprints, and wide-ranging networks, we will scale up the Reach Remote project and future-proof the marine subsea services through safe and sustainable solutions that will dramatically lower operational costs and the environmental footprint of operations,” said Jostein Alendal, CEO of Reach Subsea.
The Reach Remote USVs will serve as mobile power banks, data centers and communication modules for underwater ROVs (Remotely Operated Vehicles), with the USVs operated from Massterly’s onshore control centers. Features for both real time operator control and autonomous operations will be incorporated, as well as hybrid modes blending remote and semi-autonomous control.
Reach Remote will build on framework agreements already in place to position Reach as a preferred supplier of survey-, inspection-, and light repair services to the existing subsea market and the fast-growing offshore wind industry. Reach Remote will also be key to providing services to emerging markets, such as deep-sea mining, carbon storage, offshore aquaculture and environmental surveillance and data gathering.
Jan Eyvin Wang, Executive Vice President, New Energy at Wilhelmsen said: “We have been actively assessing the subsea market to find a company that could add complementary scale to our ambition within renewables. We see potential to grow within emerging sectors such as offshore wind, subsea cables and other offshore electrification infrastructure, carbon storage and deep-sea mining. Through their strong customer relations, extensive experience and cutting-edge technology gained from offshore oil and gas, Reach Subsea is an ideal partner.”
“Wilhelmsen represents the ideal industrial global partner needed for Reach to scale and commercialize Reach Remote. This partnership will benefit both companies and their international customer base across sectors. On behalf of North Energy, I am pleased to welcome Wilhelmsen, who shares our strategic visions for Reach, as a new major shareholder in Reach,” said Rachid Bendriss, Chairman of Reach and co-CEO of North Energy.
Advokatfirmaet Schjødt AS acted as legal advisor and Fearnley Securities AS as financial advisor to Reach in the transaction.
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