BPC Instruments AB receives preliminary approval for listing and publishes memorandum in connection with planned IPO

STOCKHOLM, SWEDEN – 15 NOVEMBER 2021: BPC Instruments AB (“BPC Instruments” or “the Company”) hereby announces that the Company has received preliminary approval for listing on Spotlight Stock Market (“Spotlight”). The Company hereby also publishes memorandum in connection with the planned initial public offering of shares (“the IPO”), which initially amounts to a maximum of approximately SEK 15 million before issue costs. The subscription period for the IPO begins on Wednesday, 17 November 2021 and ends on 1 December 2021. BPC Instruments has in advance agreed to approximately 66.6 percent of the IPO through written pre-subscription commitments. The memorandum is available via the Company’s (www.bpcinstruments.com), Sedermera Fondkommission’s (www.sedermera.se) and Spotlight Stock Market’s (www.spotlightstockmarket.com) respective web pages.

CEO Jing Liu comments

“BPC Instruments has developed and sold automated, analytical instruments that allow for more efficient, reliable, and higher quality of research and analysis in a wide range of biotechnology industries over 15 years. The result is significant reductions in time consumption and labor requirements for performing analysis. Now, putting on a new suit as a listed company, we will be capable to grab hold of the momentum we are experiencing and going even broader with our products into new markets – both globally and vertical-wise. BPC Instruments is a good example of a company with low risk and high opportunity for return. Join us on the exciting journey we are on and expect to accelerate in the coming years!”

Background and motive

Until 2020, BPC Instruments’ primary focus has been on the biogas sector. With a growing demand for emission control and a paradigm shift in the environmental goals of governments and companies, BPC Instruments sees excellent opportunities in a wide variety of areas for their products. BPC Instruments is currently expanding into new sectors such as Biodegradability & Compostability, Animal & Human Nutrition, Fermentations, Wastewater Treatment, and Biohydrogen fields, which all will see substantial growth in the coming year, according to the Company. BPC Instruments has a solid plan to accelerate growth and will continue to work on organizational and product development to enable the Company to seize the opportunity that will open as global emission controls tighten. To finance the continued expansion and implement the Company's growth plan in Europe, the USA and China, BPC Instruments now carries out a capitalization prior to listing on the Spotlight Stock Market.

BPC Instruments plans to raise approx. SEK 15 million before issue cost in the new share issue prior to the planned listing on Spotlight. The Company intends to use the issue proceeds to increase market penetration and expand current marketing activities to increase the global awareness of BPC Instruments’ products and their applications. According to the Board of Directors, BPC Instruments has a unique market position with best-in-class products in a fast-growing market, hence the Company’s primary goal is to achieve a critical first-mover advantage position and grab as much market share as possible before competition arises. The total net proceeds from the IPO are intended to finance the following (arranged by priority):

• Strengthen production capacity; sales & market resources; customer support team, product and software development capacity to support the growth and business expansion from a single niche market to multiple biotechnology industrial sectors.
• Investigation of instrument utilization in both existing and new fields to gain knowhow and competence for sales promotion and customer support.
• Acceleration of new product development including next generation of flagship apparatus.
• Strengthen cash buffer to support the growth of business operations.
• Business expansion in the US and China.

The planned IPO in summary

Subscription period: 17 November 2021 – 1 December 2021.

Subscription price: SEK 20.50 per share.

Minimum subscription: The minimum subscription is 200 shares, corresponding to SEK 4,100.00.

Issue volume: The offer comprises no more than 732,000 shares, equivalent to approx. SEK 15 million before transaction related costs.

Subscription commitments: BPC Instruments has received subscription commitments of approx. SEK 10 million, corresponding to approx. 66.6 percent of the total issue volume.

Valuation (pre-money): Approx. SEK 199.3 million.

Planned first day of trading: The share in BPC Instruments is planned to be listed on Spotlight. The trading is planned to commence on December 16, 2021.

Ticker and ISIN code: BPCINS and SE0017130826.

Lock-up-commitments

The Company’s main shareholders, which are also members of the Board of Directors of the Company, see their shareholdings as a long-term investment. Shares corresponding to approx. 86 percent of the total number of outstanding shares in the Company, at the date of this document, are under lock up. The lock up corresponds to 90 percent of the shareholdings for each of the parties that have entered into an agreement and runs for a period of 12 months following the first day of trading on Spotlight.

Financial advisor, legal advisor and issuing agent

Sedermera Fondkommission is the financial advisor and Shark Communication AB has assisted the Company in the preparation of this memorandum. Markets & Corporate Law Nordic AB is the legal advisor and Nordic Issuing is the issuing agent.

For more information about the IPO and the planned listing, please contact:

Sedermera Fondkommission

Phone: +46 (0) 40 615 14 10

E-mail: info@sedermera.se

For further information, please contact:

Jing Liu, CEO, BPC Instruments

Tel: +46 46 16 39 50

E-mail: jl@bpcinstruments.com

About BPC Instruments AB

BPC Instruments' products offer better quality and features in both hardware and software, and the Company has a deep level of knowledge and know-how on target applications. The solutions of BPC Instruments are the first of their kind, making the Company a pioneer in its field. The Board and the management in BPC Instruments estimates that the Company’s current share of the global market of feedstock quality analysis in biogas production equals approx. 90 percent.