Stabilisation notice, end of stabilisation period and exercise of over-allotment option

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, FULLY OR PARTLY, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, AUSTRALIA, HONG KONG, CANADA, JAPAN, NEW ZEALAND, SWITZERLAND, SINGAPORE, SOUTH AFRICA, OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, DISTRIBUTION OR PUBLICATION WOULD BE UNLAWFUL OR REQUIRE REGISTRATION OR ANY OTHER MEASURE IN ACCORDANCE WITH APPLICABLE LAW.

DNB Markets, a part of DNB Bank ASA, Sweden Branch ("DNB"), acting in its capacity as stabilisation manager, notifies that stabilisation measures have been undertaken in the Aros Bostadsutveckling AB (publ) ("Aros Bostad" or the "Company") ordinary shares traded on Nasdaq First North Growth Market ("Nasdaq First North"). The stabilisation period has now ended and no further stabilisation transactions will be effected. DNB exercises the over-allotment option in respect of 310,317 shares in Aros Bostad.

As announced on June 16, 2021 in the press release regarding first day of trading in Aros Bostad's ordinary share on Nasdaq First North, DNB had the option, but had no obligation, to, carry out transactions in Aros Bostad's ordinary share aimed at supporting the market price of the share at levels above those which might otherwise prevail in the market.

Stabilisation transactions in Aros Bostad's ordinary could be undertaken at any time from the first day of trading on Nasdaq First North (on June 16, 2021) and for no longer than 30 calendar days thereafter. Such stabilisation measures could be undertaken on Nasdaq First North, in the over-the-counter market or otherwise. Stabilisation transactions could not be and were not conducted at a price per share higher than the one set in the offering (SEK 56).

DNB has, in its capacity as stabilisation manager, notified that stabilisation measures, in accordance with Article 5.4 of the Market Abuse Regulation (EU No 596/2014), have been undertaken in respect of 620,486 ordinary shares in Aros Bostad. All stabilisation transactions have been effected on Nasdaq First North. The stabilisation period has now ended and no further stabilising transactions will be effected. Below is a summary of the stabilisation transactions which have been undertaken during the stabilisation period. Contact person at DNB is Olof Isacsson, phone: +46 709 39 18 29.

In connection with the offering, the Company entered into an undertaking to, within 30 days from the first day of trading on Nasdaq First North, upon the request of DNB, issue up to 930,803 additional ordinary shares in Aros Bostad to cover any over-allotment in connection with the offering (the “Over-allotment Option”). Since DNB, in accordance with what is stated below, has undertaken stabilisation transactions in respect of 620,486 ordinary shares in the Company, DNB has today notified that DNB has exercised the Over-allotment Option in respect of 310,317 ordinary shares.

Stabilisation information

Stabilisation measures

Important information
The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions and the recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such legal restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in Aros Bostad in any jurisdiction, neither from Aros Bostad nor from someone else.

This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, within or into Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, Switzerland, the United States, or in any other jurisdiction where such announcement, publication or distribution of the information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.

In the United Kingdom, this press release and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, "qualified investors" (within the meaning of the United Kingdom version of the EU Prospectus Regulation (2017/1129/ EU) which is part of United Kingdom law by virtue of the European Union (Withdrawal) Act 2018) who are (i) persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.

This press release does not identify or suggest, or purport to identify or suggest, the risks (direct or indirect) that may be associated with an investment in the Company. The information in this press release is only intended to describe the background of the offering and does not claim to be complete or exhaustive. No assurance is made with respect to the information in the press release as regards its accuracy or completeness. DNB Markets, a part of DNB Bank ASA, Sweden Branch ("DNB"), is acting for Aros Bostad in connection with the offering and not for anyone else. DNB will not be responsible to anyone other than the Company for providing the protections afforded to its clients nor for giving advice in relation to the offering or any other matter referred to herein.

This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 (the "Prospectus Regulation") and has not been approved by any regulatory authority in any jurisdiction. A prospectus has been prepared in connection with the offering which has been scrutinized and approved by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) which is the national competent authority in Sweden under the Prospectus Regulation. The prospectus is available on the Company’s website and on the Swedish Financial Supervisory Authority’s website.

This disclosure contains information that Aros Bostadsutveckling AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 18-07-2021 20:22 CET.

For more information, please contact:
Magnus Andersson, CEO, e-mail: magnus.andersson@arosbostad.se, phone: +46 8 400 230 50
Ken Wendelin, CFO/Deputy CEO, e-mail: ken.wendelin@arosbostad.se, phone: +46 73 518 02 70
Anna Åkerlund, Head of Communications & IR, e-mail: anna.akerlund@arosbostad.se, phone: +46 70 778 28 97
Certified Adviser, e-mail: certifiedadviser@penser.se, phone: +46 8 463 83 00

About Aros Bostad

Aros Bostad is a residential developer within the Stockholm area focusing on developing modern, functional and sustainable residential housing in attractive geographical areas, with timeless choices of materials and designs. The Company acquires and develops land into building rights and subsequently into residential housing. With a long-term perspective and responsibility for the entire value chain, Aros Bostad creates a safe deal for home buyers as well as stable returns for the investors. The Company was founded in 2006 and its primary geographical market is the greater Stockholm area and Uppsala. The Company's project portfolio has historically been built up through fund structures in collaboration with institutional investors, as well as through own acquisitions. Aros Bostad has residential development projects in different stages of development corresponding to c. 4,600 units.

Main investors in Aros Bostad's funds is primarily institutional capital from AP1, Varma, SEB Trygg-Liv, SEB Pensionsstiftelse, Östersjöstiftelsen as well as several prominent and financially strong entrepreneurs and investors.

The Company's ordinary shares and preference shares of class A and B are listed on Nasdaq First North Growth Market.