Impact Coatings Completes Successful Private Placement for SEK 120 Million ($14.5M)

The Board of Impact Coatings has, in accordance with what was announced in the Company’s press release earlier today, decided on a directed new issue of 4,800,000 shares. The subscription price per new share in the Private Placement amounted to SEK 25.00 and has been determined through an accelerated bookbuilding procedure carried out by the Company’s financial advisor Pareto Securities AB (“ Pareto Securities ”). It is therefore the Board’s assessment that the terms of the Private Placement and the subscription price are market-based. The subscription price per share in the Private Placement corresponds to a discount of approximately 7.7 percent compared with the closing price on the Nasdaq First North Growth Market on February 24, 2021. Through the Private Placement, Impact Coatings will receive approximately SEK 120 million before issue costs.

A large number of Swedish and international institutional investors, including Länsförsäkringar Fonder and the existing shareholder Accendo Capital, participated in the Private Placement.

The reasons for the deviation from the shareholders’ preferential rights are further to diversify the ownership base in the Company among Swedish as well as international institutional and reputable investors and to use the opportunity to raise capital in a time- and cost-effective manner. The net proceeds from the private placement will be used to enable increased investment in the Company’s internationalization, as well as in its commercialization, technical and production capacity to be able to capitalize on significant growth opportunities offered by the migration from fossil fuels to hydrogen-based energy systems and the promotion of related applications.

Through the Private Placement, the number of outstanding shares and votes increases by 4,800,000, from 51,809,051 to 56,609,051. The share capital increases by SEK 600,000, from SEK 6,476,131,375 to SEK 7,076,131,375. The Private Placement will result in a dilution of approximately 8.5 percent of the number of shares and votes in the Company after the completion of the Private Placement.

In connection with the Private Placement, the Company has undertaken, with the usual exceptions, not to issue additional shares for a period of 12 months after the publication of the result of the Private Placement. Board members, shareholders, senior executives and certain major existing shareholders, in the form of Accendo Capital and Hyundai Motor Company, have undertaken not to sell any shares in Impact Coatings for a period of 90 calendar days after the publication of the results of the Private Placement, with the usual exceptions .

Advisor

Pareto Securities AB is the Sole Manager and Bookrunner and Kanter Advokatbyrå KB is the legal advisor to the Company and Baker McKenzie Advokatbyrå KB is the legal advisor to Pareto Securities in connection with the Private Placement.