Collector AB: Collector Announces Rights Issue of Approximately SEK 500M

Regulatory News:

The Board of Directors of Collector AB (publ) (”Collector” or the "Company”) (STO:COLL) has resolved to launch an issue of shares of approximately SEK 500m with preferential rights for Collector’s shareholders.

The rights issue in brief:

· The rights issue is carried out to enable continued growth and meet the Company’s financial target regarding capital adequacy

· The subscription period will run from September 27, 2016 up to and including October 11, 2016

· Shareholders in Collector have preferential right to subscribe for one (1) new share per ten (10) existing shares, i.e. a subscription ratio of 1:10

· The subscription price is SEK 55 per share, which amounts to maximum issue proceeds of not more than SEK 513m before transaction costs

· Collector has received subscription undertakings and intentions to subscribe corresponding to 78 percent of the rights issue

Lena Apler, Collector’s founder and Chairman of the Board, comments:

”We are delighted to see that Collector’s strong growth continues. As previously communicated, we are now strengthening our capital base in order to enable our growth journey to continue.”

Stefan Alexandersson, Collector’s CEO, comments:

”We have a high level of activity in Collector and continue to deliver on our growth targets. In order to capture business opportunities and meet our targets regarding capital adequacy we are now carrying out a rights issue. We are pleased by the strong support that the rights issue has received from our shareholders.”

Background and reasons

Collector is a niche player in the banking and financial market and offers creative, customized and efficient financial services. The Company’s offering includes financial products for both private individuals and corporates.

Collector has the last five quarters since the Company’s initial public offering on June 10, 2015 increased total income with 38 percent and earnings after tax with 74 percent. The strong total income and earnings growth have been driven by strong growth of lending volumes and the Company assess that the positive trend will continue. Collector has a long-term focus and continues to invest for the future. During the end of 2016 and beginning of 2017 Collector expects to launch new products, foremost to small and medium enterprises.

To enable the continued growth and meet the Company’s financial target regarding capital adequacy, the Board of Directors has decided to carry out a rights issue of not more than SEK 513 million before transaction expenses. Adjusted for the issue proceeds the total capital ratio for the financial corporate group would amount to 20.1[1] (http://#_ftn1) percent as of June 30, 2016.

The Offer

Collector’s Board of Directors has resolved, with support of the authorization which was obtained at 2016’s AGM, to launch a rights issue of shares with preferential rights for Collector’s shareholders. Persons registered as shareholders in Collector by Euroclear Sweden AB on the record date September 22, 2016 have preferential right to subscribe for new shares in the rights issue. Shareholders are entitled to one (1) subscription right for each share held. The subscription rights entitle the shareholder to subscribe, with preferential right, for new shares, where ten (10) subscription rights entitle subscription of one (1) new share. The subscription price is SEK 55 per share. In addition, subscription will also be possible without the exercise of subscription rights.

The record date of Euroclear Sweden AB for determining which shareholders who are entitled to receive subscription rights is September 22, 2016. The shares are traded including the right to participate in the rights issue up to and including September 20, 2016.

Provided that the Offer is subscribed for in full, the share capital will increase with SEK 933,500 through rights issue of 9,335,000 ordinary shares. Assuming full subscription, the total issue proceeds amounts to SEK 513m before transaction expenses.

Subscription of new shares shall be made during the period from and including September 27, 2016 up to and including October 11, 2016. Collector's Board of Directors has the right to extend the subscription period.

Shareholders who choose not to participate in the rights issue will have their ownership diluted by approximately 9.1 percent, but are able to financially compensate for this dilution by selling their subscription rights.

Shareholder support

Fastighets AB Balder, StrategiQ Capital, Ernström Finans, Erik Selin (privately and through company), the Second Swedish National Pension Fund, Lena Apler (through company), Stefan Alexandersson and Pia-Lena Olofsson who in total hold 71 percent of the shares in Collector, have committed to subscribe for their pro rata shares of the rights issue. In addition, Swedbank Robur Fonder, who holds 7 percent of the shares in Collector, has expressed an intention to subscribe for its pro rata share of the rights issue.

In total, the subscription undertakings and intentions to subscribe corresponds to 78 percent of the rights issue.

Timetable

September 20, Last day of trading of Collector’s share including right to 2016 participate in the Offer September 21, First day of trading of Collector’s share excluding the right 2016 to participate in the Offer September 22, Record date for participation in the rights issue, i.e. 2016 shareholders who are registered in the share register as of this day will receive subscription rights for participation in the rights issue September 22, Expected date for the publication of the prospectus 2016 September 27 – Trading in subscription rights October 7, 2016 September 27 – Subscription period October 11, 2016 October 17, Announcement of preliminary outcome of the offering 2016

Financial and legal advisors

SEB Corporate Finance is acting as financial advisor and Setterwalls Advokatbyrå as legal advisor to Collector in connection with the rights issue.

Gothenburg September 16, 2016

Collector AB (publ)

This information is information that Collector AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07:30 CET on 16 September 2016.

About Collector

Collector is a niche bank that offers innovative financial solutions to private and corporate customers. Operations are carried out in two segments; Retail and Corporate. Within Retail, Collector offers personal loans, invoicing and instalment solutions to e-commerce and retail customers, credit cards through Collector Easycard and Collector Easyliving, and deposits. The Corporate segment includes factoring and corporate loans primarily to SMEs, junior property financing solutions, third party debt collection services and acquisitions of portfolios of overdue receivables. The Company has offices in Gothenburg (headquarter), Stockholm, Malmö, Helsinki and Oslo.

Important information

The information in this press release does not constitute an offer to acquire, subscribe for or otherwise trade in shares, subscription rights or other securities in Collector. Any invitation to the persons concerned to subscribe for shares in Collector will only be made through the prospectus that Collector estimates to publish on or around 22 September 2016.

This press release may not be released, published or distributed, directly or indirectly, in or into the United States, Australia, Canada, or any other jurisdiction where such action is wholly or partially subject to legal restrictions or where such action would require additional prospectuses, registrations or other actions in addition to what follows from Swedish law. Nor may the information in this press release be forwarded, reproduced or disclosed in a manner that contravenes such restrictions or would entail such requirements. Failure to comply with this instruction may result in a violation of applicable securities laws.

No subscription rights, BTAs (interim shares) or new shares have or will be registered under the U.S. Securities Act of 1933, as amended, ("Securities Act”), or securities legislation in any state or other jurisdiction in the United States and may not be offered or sold, directly or indirectly, in or into the United States, except pursuant to an available exemption from the registration requirements of the Securities Act and in compliance with the securities laws of any state or other jurisdiction of the United States.

This press release may contain forward-looking statements which reflect Collector’s current view on future events and financial and operational development. The words "intend”, "estimate”, "expect”, "may”, "plan”, "anticipate” or similar expressions regarding indications or prognoses of future developments or trends and which are not statements based on historical facts constitute forward-looking information. Although Collector believes that these statements are based on reasonable assumptions and expectations, Collector cannot give any assurances that such statements will materialize. Forward-looking statements are in its nature involved with both known and unknown risks and uncertainties, since it is depending on future events and circumstances. Forward-looking statements do not constitute any representations and warranties and the outcome could differ materially from the information set out in the forward-looking statements.

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[1] (http://#_ftnref1) Before transaction costs

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