SaltX partners with SMA Mineral to accelerate the transition into production of “green lime” and carries out a directed new share issue of SEK 73 million

NOT FOR RELEASE, PUBLICATION, OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SINGAPORE, SOUTH AFRICA, SOUTH KOREA, OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES. PLEASE REFER TO THE IMPORTANT INFORMATION AT THE END OF THE PRESS RELEASE. 
 

SaltX Technology Holding AB (publ) (“SaltX” or “the Company”) initiates a commercial collaboration and carries out a directed issue of approximately SEK 73 million to the industrial partner SMA Mineral AB (“SMA”), one of the leading lime producers in the Nordics. SaltX aims to accelerate the green transition in the lime and cement industry with its new innovation – the Electric Arc Calciner.

The Swedish Greentech company SaltX has previously communicated its progress in the electrification of the lime and cement industry. The Company is now entering into a cooperation agreement with SMA, one of the largest lime producers in the Nordic region, to start manufacturing "green lime" (which refers to the carbon-neutral production of quicklime and dolomite). The cooperation agreement contains the parties' intention regarding joint development and demonstration of the possibility of producing "green lime," as well as provisions that give SMA preferential rights to the technology when selling lime to players in the steel industry in Sweden and Finland under certain conditions. 

As part of the collaboration, SMA is also subscribing for new shares in SaltX equivalent to 15 percent ownership through a directed new share issue, at a price of SEK 4.00 per share, which contributes approximately SEK 73 million to SaltX (the “Directed New Share Issue”). 

The lime industry is one of Sweden's largest emitters of carbon dioxide. SaltX and SMA believe that the industry is facing an inevitable change, where production must become more energy-efficient, and carbon dioxide emissions must be heavily reduced. With this collaboration, significant steps can be taken towards a green transition. 

The investment is intended to be used primarily to accelerate the development and commercialization of electrical calcination technology according to the purpose of the collaboration. 

SaltX CEO Carl-Johan Linér says: 

“Our respective cutting-edge competencies and the shared vision of contributing to a green transformation of the industry are a perfect match. I am very proud that we also can welcome SMA as an owner of SaltX. This is the beginning of an exciting joint journey.” 

SMA Mineral wants to be at the forefront of innovations that promote a green and circular transformation of the industry; the company's CEO Svante Fielding says: 

“Lime is a fantastic material and an important component for e.g., the steel and paper and pulp industries. We believe that together with SaltX's electrification technology, we can reach a carbon-free production and make the necessary green transition.” 
 
About the Directed New Share Issue 
The Board of Directors of SaltX has today, with the support of the Annual General Meeting's authorization on April 25, 2022, decided on a directed new share issue of 18,165,350 shares of Series B to SMA, corresponding to an increase in the share capital of SEK 1,453,288. The subscription price for the shares is SEK 4.00 per share of Series B, which contributes approximately SEK 73 million to SaltX. The price corresponds to a discount of 8.5 percent from the weighted average bid price during 10 trading days immediately before the subscription and has been determined in negotiations between the parties, which is assessed on the market. The reason for the deviation from the shareholders' preferential rights is that it takes place as part of the collaboration with SMA and, according to the Board's assessment, provides SaltX a long-term and strategically important shareholder while at the same time strengthening SaltX's financial position in a time- and cost-effective manner on market terms. 

The Directed New Share Issue will cause a dilution effect for the Company's existing shareholders of 15 percent. The distribution of the shareholders' shares in the Company after registration of the Directed New Share Issue is shown in the table below. 

Advisors 
Stockholm Corporate Finance AB is the financial advisor and Törngren Magnell & Partners Advokatfirma KB is the legal advisor in connection with the Directed New Shares Issue. 

For more information, please contact: 
Carl-Johan Linér, CEO, 070 532 08 08 
Harald Bauer, CFO, 070 810 80 34 

This information is such information that SaltX Technology Holding AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the care of the above contact persons, for publication on June 29 2022 at 08.00 CEST. 
 

About SMA Mineral 
SMA Mineral is one of the largest lime producers in the Nordic region and supplies burnt lime to, among others, the steel and paper & pulp industry. For more information, visit: www.smamineral.se

About SaltX Technology 
SaltX Technology develops and sells patented energy storage solutions. SaltX works to develop and offer sustainable technology and solutions that benefit customers, the climate, and society. SaltX Technology's share is listed on the Nasdaq First North Premier Growth Market. FNCA Sweden AB, + 468-528 00 399, info@fnca.se is SaltX Technology's certified advisor. For more information, visit www.saltxtechnology.com

About Stockholm Corporate Finance AB 
Stockholm Corporate Finance is an independent privately-owned financial advisor that offers services in qualified advice regarding capital raising, changes of ownership, and mergers and acquisitions (M&A) to listed and private companies and their owners. Stockholm Corporate Finance is the exclusive Swedish partner in the global network M&A Worldwide, which consists of 49 M&A advisers and investment banks in 36 countries. Stockholm Corporate Finance is an investment firm under the supervision of Finansinspektionen and is a member of the trade association SwedSec Licensiering AB. For more information see: www.stockholmcorp.se

Important information 
The release, announcement, or distribution of this press release may, in certain jurisdictions, be subject to restrictions. 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. This press release may not be announced, published, or distributed, directly or indirectly, in whole or in part, in or into the United States, Australia, Canada, New Zealand, Hong Kong, Japan, Singapore, South Africa, South Korea or in any other jurisdiction where such announcement, publication or distribution would be unlawful or would require additional registration or other measures. 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 SaltX in any jurisdiction, neither from SaltX nor from someone else. 

This press release does not identify or purport to identify, the risks (direct or indirect) that may be associated with an investment in SaltX’s shares. An investment decision regarding SaltX’s shares shall be made on the basis of all publicly available information regarding the Company and the Company’s shares. The information contained in this press release is for background purposes only and does not purport to be complete. Thus, an investor should not rely solely on the information contained in this press release or its accuracy or completeness. This press release does not constitute a recommendation. Each investor or potential investor should conduct its own research, analysis and evaluation of the business and information contained in this press release and all publicly available information. The price and value of securities can decrease as well as increase. Achieved results do not provide guidance for future results. 

Forward-looking statements 
This press release may contain forward-looking statements that reflect the Company’s current view of future events as well as financial and operational development. Expressions such as “refers to”, “aims at”, “expects”, “anticipates”, “can”, “appreciates”, “plans”, “calculates” and other expressions that indicate or anticipate future developments or trends are forward-looking statements and are not based on historical facts. Such forward-looking statements are based on assumptions or estimates, and the Company makes no guarantees that such statements will be fulfilled or proven to be correct. The Company is also not responsible for the future accuracy of the information.