Brighter’s Board of Directors secures financing for further commercialization through a rights issue of units of approximately SEK 52.4 million and procures loan financing

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The Board of Directors of Brighter AB (publ) (“Brighter” or the “Company”) has today, with authorization from the general meeting in the Company on June 8, 2022, decided to carry out of an issue of units consisting of shares and warrants with preferential rights for existing shareholders of approximately SEK 52.4 million (the “Rights Issue”). The Rights Issue is covered to approximately 57.24 percent through underwriting commitments, corresponding to approximately SEK 30 million. In connection with the Rights Issue, the Board of Directors have procured a loan financing of SEK 10 million from Formue Nord Markedsneutral (the “Loan financing”).

Summary

• Upon full subscription, the Rights Issue provides Brighter with approximately SEK 52.4 million before issuing costs.
• In the event of full subscription and full exercise of all warrants of series TO9 in conjunction with offered units, the Company may be provided with an additional maximum of approximately SEK 52.4 million.
• The Rights Issue is covered to approximately 57.24 percent through underwriting commitments.
• All existing shareholders will receive one (1) unit right for each one (1) share owned on the record date, September 14, 2022. Five (5) unit rights give the right to subscribe for one (1) unit. One (1) unit consists of five (5) newly issued shares and four (4) warrants of series TO9. The subscription price per unit is SEK 0.30, corresponding to SEK 0.06 per share (the warrants are issued free of charge).
• The subscription period for the Rights Issue will run from September 16, 2022, to September 30, 2022.
• The Rights Issue is carried out in order to be able to produce, continuously develop, sell and market Brighter’s products to partners and consumers on a long term and large-scale basis.
• The Company has procured a Loan financing of SEK 10 million. The Loan financing runs with market terms of 2.0 percent interest per started 30-day period and matures on November 30, 2022. The Company has not provided any security for the Loan financing, but has agreed upon repayment of the Loan financing using the proceeds from the Rights Issue.

Background and rationale in summary

With full focus on commercialization, the Company is in an exciting phase and is working intensively with several parallel sales processes while working actively to obtain the necessary approvals to accelerate our presence in the markets where we are active. In Qatar, the Company is in full swing with commercialization and is now focusing on initiating the use of Actiste® in collaboration with more hospitals and healthcare facilities. In the UAE, the Company is starting up a pilot together with the majority of healthcare facilities and hospitals who are awaiting the final approvals to start up the commercialization in the country.

During 2022, Brighter's board and management have continuously evaluated the need for resources and costs required to reach the set goals that the company group has established and agreed that an injection of capital is required for the continued commercialization, despite successful efforts to lower the Company's costs during the period. The Company also needs funding to carry out the processes for validating the company's current digital solutions as well as for the development of new innovative business models recommended by the board, intensified customer processing and solutions for data analysis.

The proceeds from the Rights Issue and the exercising of warrants TO9, shall be primarily used for:

• Commercialization
• Further development of products and solutions
• MDR certification and regulatory approvals for new markets
• Repayment of credits

Comment from the CEO

The transition to data-driven remote healthcare, driven by the pandemic, has highlighted the need for more efficient and connected care. This has opened a window of opportunity for Brighter's vision to enrich the lives of the many people living with chronic diseases, while at the same time contributing to more efficient and less expensive healthcare.

I have great confidence in our solutions and the competence we have in the Company. Our main focus will be the continued commercialization of Actiste®, which we started in early 2022 in Qatar. We will also continue to develop our digital solutions and try to take a bigger place in the patients' ecosystem.

-Erik Lissner, CEO at Brighter

Terms for the Rights Issue

The Board of Directors of Brighter has resolved on the Rights Issue in accordance with the following main terms:

• All existing shareholders will receive one (1) unit right for each (1) share owned on the record date, September 14, 2022, and five (5) unit rights give the right to subscribe for one (1) unit. One (1) unit consists of five (5) newly issued shares and four (4) warrants of series TO9.
• The subscription price per unit is SEK 0.30, corresponding to SEK 0.06 per share (the warrants are issued free of charge).
• The Rights Issue entails an issue of a maximum of 174,704,989 units, corresponding to 873,524,945 shares and 698,819,956 warrants of series TO9.
• Upon full subscription in the Rights Issue, the Company receives approximately SEK 52.4 million before issue costs.
• The subscription period for subscription of units will run from September 16, 2022, to September 30, 2022.
• The subscription price for subscription of shares with the support of warrants of series TO9 corresponds to 70 percent of the volume-weighted average price paid for the Company’s shares on Nasdaq First North Growth Market during the period from January 2, 2023, to January 16, 2023, but not less than the share’s quota value and not more than SEK 0.08.
• The exercise period for subscription of shares with the support of the warrants of series TO9 will run from January 18, 2023, to January 31, 2023.
• In the event of full subscription and full exercise of all warrants of series TO9 in conjunction with offered units, the Company may be provided with an additional maximum of approximately SEK 52.4 million.
• Through the Rights Issue, the share capital may increase by a maximum of SEK 43,676,247.25, from SEK 43,676,247.25 to SEK 87,352,494.50. Upon full exercise of the warrants of series TO9 covered by the Rights Issue, the share capital may increase by an additional SEK 34,940,997.80 to SEK 122,293,492.30.
• The existing shareholders in the Company who do not subscribe for units in the Rights Issue will be subject to dilution. A fully subscribed Rights issue entails a dilution corresponding to 50 percent. The maximum increase in the number of shares in the Company as a result of full subscription of the Rights Issue and full exercise of attached warrants of series TO9 may entail a further dilution of approximately 28.57 percent.
• The Company intends to apply for admittance of trading of the warrants of series TO9 on Nasdaq First North Growth Market after final registration with the Swedish Companies Registration Office.

Underwriting commitments

The Rights Issue is covered to approximately 57.24 percent through underwriting commitments. The underwriting commitments are not secured through bank guarantees, pledge or similar arrangements. The underwriting commitments have been provided by external investors. For the underwriting commitments, an underwriting compensation of fifteen (15) percent of the guaranteed amount in cash compensation or twenty (20) percent of the guaranteed amount in the form of units with a subscription price corresponding to the subscription price per unit in the issue, which the Board of Directors deems to be market terms. The respective underwriter has the right to choose whether the underwriting compensation is to be paid in cash or in the form of units.

Prospectus

An EU growth prospectus and application form will be available before the beginning of the

subscription period on the Company's website, www.brighter.se.

Indicative timetable

Advisers

Mangold Fondkommission AB is the financial advisor to Brighter in connection with the Rights Issue. Synch Advokat AB is the legal advisor to the Company in connection with the Rights Issue.

For more information, please contact:

Investor Relations

IR@brighter.se

Certified Adviser

Brighter’s Certified Adviser is Mangold Fondkommission AB,

+46 8 52 77 5020, ca@mangold.se, www.mangold.se  

About Brighter

Brighter is a health-tech company from Sweden with a vision of a world where managing chronic diseases is no longer a struggle. We believe a data-centric approach is key to providing smarter care for chronic conditions. Our daily-care solutions are designed with a vision to facilitate the flow of real-life treatment data between chronic-disease patients, their loved ones and their care providers – aiming to improve quality of life, easing the burden on healthcare systems, and opening new opportunities for data-driven research. Brighter's quality management system is ISO13485 certified. In 2019 the Company won the Swecare Rising Stars Award. The Company's shares are listed on Nasdaq First North Growth Market/BRIG. For more information, please visit our website at www.brighter.se.

This information is information that Brighter 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, on 2022-08-25 at 08:15CET.

Important information

Release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions according to law and people in those jurisdictions, in which this press release has been announced or distributed, should inform themselves of and follow such legal restrictions. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in Brighter in any jurisdiction. Invitation to the persons concerned to participate in the Rights Issue will only take place through the EU growth prospectus which the Company intends to publish in connection with the Rights Issue. 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 information in this press release may not be announced, published or distributed in or into the United Kingdom, the United States, Canada, Japan, Australia, Hong Kong, New Zealand, Switzerland, South Africa or in any other jurisdiction where the announcement, publication or distribution of the information would not comply with applicable laws and regulations. Within the European Economic Area, no offer is made to the public of securities in any country other than Sweden. In other Member States of the European Union, such an offer may only be made in accordance with the exceptions in the Prospectus Regulation (EU) 2017/1129. This press release contains certain forward-looking information that reflects the Company’s present view of future events as well as financial and operational development. Words such as “intend”, “assess”, “expect”, “may”, “plan”, “believe”, “estimate” and other expressions entailing indications or predictions of future development or trends, not based on historical facts, constitute forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties as it depends on future events and circumstances. Forward-looking information is not a guarantee of future results or development and actual outcomes may differ materially from the statements set forth in the forward-looking information.