The Board of Directors of Tecnotree Corporation has decided on a directed share issue

Tecnotree Corporation Stock Exchange Release 30 Jul 2021 at 16:00 EET

Earlier today 30 July 2021 the Extraordinary General Meeting of Tecnotree Corporation (the “Company”) authorized the Board of Directors of the Company to decide on a directed issue in deviation from the shareholders’ pre-emptive subscription right. Today, the Company’s Board of Directors has decided on the basis of the above-mentioned authorization to offer a maximum of 30,577,778 new shares in the Company (the “Shares”) in deviation from the shareholder’ pre-emptive rights (the “Issue”).

The Issue in brief

• The Company aims to raise gross proceeds of approximately EU 22 million in total through the Issue by offering a maximum of 30,577,778 Shares.
• The purpose of the directed issue is to support the debt repayment capability and strengthen the working capital of the Company, so there is a weighty financial reason for the Company, as referred to in Chapter 9, section 4(1) of the Finnish Companies Act, for the directed issue and for the deviation from the shareholder’s pre-emptive right.
• The Shares are offered for subscription by Joensuun Kauppa ja Kone Oy:lle and Oy Hammarén & Co Ab:lle.
• Joensuun Kauppa ja Kone Oy has undertaken, subject to certain conditions, to subscribe for 27,800,000 Shares and Oy Hammarén & Co Ab has undertaken, subject to certain conditions, to subscribe for 2,777,778 Shares.
• The subscription price per Share is EUR 0.72 (the “Subscription Price”). The Subscription Price is based on negotiations between the Company and the investors. The Subscription Price shall be recorded in the reserve for invested unrestricted equity of the Company.
• The subscription period of the Shares shall commence on 31July 2021 at 12 noon Finnish time and end on 6 August 2021 at 12 noon Finnish time. The subscription price of the Shares shall be paid no later than 30 August 2021.
• The Shares equal approximately 10.8 per cent of the total number of the Company’s current shares and approximately 9.8 per cent of the total number of shares in the Company after the Issue.
• After the directed share issue, Joensuun Kauppa ja Kone Oy would hold approx. 8.9 per cent and Oy Hammarén & Co Ab will increase its shareholding to approx. 3.7 per cent of the total number of shares in the Company after the Issue.

The Shares will be registered with the Finnish trade register maintained by the Patent and Registration Office and issued in the book-entry system maintained by Euroclear Finland Ltd on or about 1 September 2021 and will give shareholders’ rights as of that time.  The Shares will be listed for trading on the main list of NASDAQ Helsinki Ltd together with the other shares of Tecnotree's present class of shares on or about 2 September 2021.  

The terms and conditions of the Issue are attached to this release.

TECNOTREE CORPORATION

For further information please contact CEO Padma Ravichander, tel. +971 56 414 1420

Attachment – Terms and conditions of directed share issue