Norwegian sports chain XXL announces that the rights issue of NOK 600 million will take place. This after the major owner Frasers Group changed its mind and is now reversing the capital raising. In connection with this, the company also presents preliminary figures for the fourth quarter.

Frasers Group has previously tried to buy out the company, and demanded a review of the issue. But now that it has agreed to do so, the planned extraordinary general meeting on Tuesday - where Frasers' demand for a review of the share issue was to be considered - will be canceled.

The share issue will be carried out at a subscription price of NOK 10 per share. The money will be used for investments in XXL's rescue plan, as well as for the repayment of a bridge loan of NOK 200 million.

As for the fourth quarter, XXL informs that sales have decreased by 2 percent to just over NOK 2 billion, compared to the previous year, and that the gross margin is expected to be between 33-34 percent. Cash on hand is estimated to have been over NOK 300 million at year-end.

"In the fourth quarter of 2024, we experienced an increase in customer traffic and an improvement in sales performance. Our category and price reset, combined with attractive Black Week and Christmas offers, have been well received by customers, even in a challenging and competitive market environment", comments CEO Freddy Sobin.

The largest shareholder in XXL is Harald Mix's private equity firm Altor.