Fuud conducts direct rights issue of SEK 40 million for accelerated expansion in the Nordic region

STOCKHOLM, Oct 18, 2021 08.30 CEST

The Board of Directors of Nasdaq First North-listed Fuud AB (publ) (the “Company”) has decided on a directed new issue of shares of SEK 40 million at a price of 80 öre / share to approximately 30 selected investors. The purpose of the issue - and the reason for the deviation from the shareholders' preferential rights - is to secure capital in a time- and cost-effective manner in order to greatly expand market activities in the Nordic region. In addition, Fuud also continuously evaluates interesting acquisition objects.

The new share issue has been made with the support of the authorization from the Annual General Meeting on June 22, 2021.

In accordance with the new strategy since December 2020, Fuud has made five company acquisitions and also communicated several strong initiatives that will contribute to Fuud's vision of becoming a leader in the Nordic functional foods market. With the help of the capital from the now completed new share issue, Fuud can greatly intensify its marketing activities in the Nordic region. In addition, the Company secures cash to be able to continue its acquisition strategy in an effective manner.

- Fuud's journey towards becoming the Nordic region's leading functional foods company has gained momentum, and the journey has only just begun. A journey based on rapid organic expansion through our very promising portfolio of brands. At the same time, we are looking for complementary acquisitions, says Peter Blom, CEO of Fuud, and continues:

- We have already reached a size that has led us to conclude several important agreements centrally with some of the Nordic region's largest food groups. Thus, there are very good conditions for a rapid and profitable expansion.

During the year, Fuud communicated several news items about increased distribution of its brands, including central listing at ICA of Beijing8, central listing of iQ Fuel at the Finnish S-Gruppen and Circle K in Sweden and the Company's investment in its own e-commerce.

Fuud has also communicated plans for intensified market investments, including collaborations with HockeyAllsvenskan, Köket.se, TV4, Aller Media and Bonnier, where Fuud's priority brands will have broad visibility during the autumn of 2021 and 2022.

- We have also got an organization in place that can take advantage of the growth opportunities our important agreements provide, says Peter Blom, and continues:

- Through new capital, we can also intensify our marketing so that we maximize profitable growth.

The capital from the new share issue will give Fuud the opportunity to continue the extensive journey that the Company started in December last year. The capital from the rights issue will primarily go to the main areas below:

Beijing8 - market investment and increased distribution

The Beijing8 brand, which sells dumplings and related by-products, has been greatly expanded through Fuud's organization and sales force. Fuud is now intensifying market investments for the brand and at the same time investing in the Swedish production facility to double production capacity and meet the increased demand.

iQ Fuel - rapid growth through central listings at Circle K in Sweden and the S Group in Finland

iQ Fuel's functional sports drinks continue to grow rapidly in Sweden. Most recently through the central listing on Circle K, where iQ Fuel is now sold at the chain's approximately 300 retailers. The distribution of iQ Fuel by the Finnish S-Gruppen will also begin in November. Fuud will also continue to invest in additional brand awareness, both in Sweden and in the Nordic neighboring countries.

Homie - launch of key products and "FeelGood" concept

The brand Homie - Life in Balance - has developed a holistic concept with its products in dietary supplements, functional drinks and vitamins. In early October, Homie's meal solution Good To Go premiered, with a successful launch in collaboration with some of Sweden's biggest influencers. The Homie brand will continue to be in focus when it comes to e-commerce. During the year, growth in Homies' e-commerce has been enormous, and sales in digital channels have so far increased manifold compared to 2020. Distribution of the brand is also expected to increase in both the grocery and pharmacy stores.

Investment in E-commerce

Fuud intends to invest further in its own e-commerce platform. The investment in e-commerce for Fuud's brands was initiated through the recruitment of Ali Nouri, who has extensive experience in digital commerce and growth. The company's investment in digital channels provides increased margins and synergies between the brands in the form of cross - selling, increased average orders, joint newsletters, campaigns and lower costs through joint distribution and logistics.

Development of organizations in Finland and Norway - for increased distribution in the Nordic region

During the year, Fuud recruited country managers in both Norway and Finland. The increased distribution of Fuud's brands in neighboring countries and the interest from the large food chains means that Fuud will continue to develop the organization in both Finland and Norway.

Details of the new issue

The new share issue is made at a subscription price of 80 öre per share and is based on a market assessment by the Board. The issue will provide the Company with SEK 40 million before issue costs. The number of new shares added through the new share issue is 50,000,000. After registration of the new share issue has been completed, the total number of shares in the company amounts to 421,311,178, provided that the Company's previously communicated conversion procedure has been registered with the Swedish Companies Registration Office. Fuud's share capital increases by SEK 2,500,000 to SEK 21,065,558.9. The 40 MSEK in the rights issue is evenly distributed among the approximately 30 participants.

Issue costs

The issue costs regarding assistance with the new share issue amount to six (6) percent of the payment. The fees for the new share issue will essentially be set off against shares in Fuud with the same subscription price as the new share issue.

Responsible party

This information is such information that Fuud AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the care of the contact person below, for publication on 18 Oct 2021 at 08.30.

For further information, please contact:

Peter Blom, CEO Fuud AB

Tel: +46 706 555 698

Email: peter.blom@fuudunited.com

About the Fuud Group

With the vision of being the Nordic market leader in 2025, Fuud brings together a number of exciting Swedish brands within Functional Foods under one roof, in order to jointly challenge the existing players in one of the food industry's fastest growing categories.

Fuud is growing through a combination of organic growth and acquisitions with a strong focus on high-quality content, exciting innovations and attractive design. Fuud's goal is to offer new and better alternatives than those already on the market, and at the same time contribute to both better health and increased quality of life for the Nordic population.

With a naturally built-in forward-thinking spirit, a strong and motivated sales force and a number of experienced key players in management and the board, Fuud has created a balance between muscle, drive and experience. The Fuud Group currently has the following brands: iQ Fuel, Homie, Beijing8, Juica, Juice Culture, Bacoccoli, Frill, Nathalie’s, Barfly and Bezzt of Nature.

The company is based in Stockholm and is listed on the Nasdaq First North Growth Market, short name Fuud. FNCA Sweden AB is the company's Certified Adviser. Tel. +46 (0) 8 528 00 399, email info@fnca.se