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August 14, 2022
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Simtel Team raises 13.7 million lei from BVB investors in a private placement brokered by BT Capital Partners and assisted by Cornerstone Communications

Simtel Team (symbol SMTL), Romanian engineering and technology company, announces the successful closing of the private placement for its shares and raising of 13,715,000 lei from Bucharest Stock Exchange investors.

The company’s shares will float on the AeRO market of the Bucharest Stock Exchange in the coming weeks. The private placement was intermediated by BT Capital Partners, the investment banking division of Banca Transilvania, while Cornerstone Communications assisted the company in the quality of Authorized Advisor.

We thank all the investors for the support offered to us in the past months, and we welcome all of the new shareholders. The capital raised today from Bucharest Stock Exchange will help take Simtel’s business to the next level. Today, we find ourselves at a unique moment in the development of our company as the context is favorable for all three of our business lines – renewable energy, telecommunications and industrial automatizations. We are excited about the opportunities that the stock market presents to us, and we will surely use alternative financing actively in the coming years in order to maintain and grow our leadership position in Romania as well as deliver even more projects abroad,“said Iulian Nedea, CEO and co-founder of Simtel Team.

Simtel Team was founded in 2010 by three graduates of the Faculty of Electronics and Telecommunications – Iulian Nedea, Sergiu Bazarciuc and Radu Vilău. The company operates in three business areas: renewable energy, telecommunications, and automation, and for each of these business lines, it delivers projects both in Romania and abroad. The main services provided by Simtel per line of business are turnkey construction and maintenance for photovoltaic parks, turnkey services for the construction of mobile communications networks for telecommunications operators, and automation of industrial processes through automated production lines, electric drives and industrial robots.

During the private placement that started on May 27th, 2021, a total of 1,055,000 shares, respectively 15% of the company’s shares, were sold to investors at a price of 13 lei per share. 154 individual and professional investors participated in the placement. The offer has been closed on the first day, being oversubscribed 3.15 times, with the investors placing orders in a total value of 43.15 million lei. To attract a diversified shareholding structure, the offer had an upper participation limit, under which investors could subscribe to a maximum of 25,000 shares. Following the successful conclusion of the private placement, the anticipated capitalization of the company is approximately 92 million lei.

Today marks the beginning of Simtel Team’s story on the Bucharest Stock Exchange. Our mission at BT Capital Partners has always been alongside innovative Romanian companies, supporting them in their development plans. We are honored to be part of Simtel’s success story, and we are confident with the capital and support of BVB investors, Simtel Team will continue to grow at an accelerated pace in the coming years,” said Daniela Secara, CEO of BT Capital Partners, the investment house that intermediated Simtel Team’s placement.

Following the private placement, the shareholding structure looks as follows: Iulian Nedea, co-founder and CEO, holds 28.2% of share capital, Sergiu Bazarciuc, co-founder and COO, holds 27.4%, Radu Vilau, co-founder and CTO, holds 27.4%, employees in Simtel hold 2% of shares while BVB investors hold 15% of shares. Consequently, once SMTL shares float on AeRO, the company’s free float will be equal to 17%.

We are thrilled for Simtel Team, and we are happy to have been alongside the company’s founders since December 2019 on their journey to the Bucharest Stock Exchange. Since our first meeting, it was clear to us that Simtel Team is the perfect company for the BVB investors – founded and led by visionary entrepreneurs, recognized in their niche, always one step ahead of the market, with a diversified business structure and a hunger to grow. We look forward to seeing how Simtel will write their history on the Bucharest Stock Exchange in the coming years,” said Zuzanna Kurek, founder of Cornerstone Communications, Authorized Advisor to Simtel Team.

Out of the amount of 13.7 million lei raised, approximately 40% of the capital for investments in the company’s Energy division, especially for the financing of Engineering, Procurement and Construction (EPC) projects, as well as for the development of the B2B distribution subdivision of components and materials needed in the construction of photovoltaic energy projects. The company estimates that 30% of the capital will fuel M&A transactions that will complete the range of services offered by the company while 25% of the capital will be used for the development of ready-to-build photovoltaic projects. The remaining 5% of the attracted capital will be used for the development of a platform for monitoring and operation of charging stations for electric cars.

In 2020, Simtel Team registered a turnover of 42 million lei, EBITDA of 5.8 million lei and net profit of 4 million lei. Out of total turnover generated in 2020, 69% was brought by engineering in the green energy sector, 28% by engineering in telecommunications projects and 2% by industrial automation engineering. The compound annual growth rate of Simtel Team’s turnover over the last three years was 73%, driven primarily by the growing demand for engineering services in the renewable energy sector. Simtel is a leader in Romania in the construction of photovoltaic power plants. Between 2019 and 2020, the company built over 17 MWp out of total of 40 MWp constructed in Romania.

 

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