A Business Update from Eternali's CEO and Moju

The year has started at a fast pace for us at Eternali. Our wood chip production facility in Moju is now operating efficiently, delivering high-quality biomass to satisfied customers. Demand continues to grow daily, and we are making regular deliveries to Combio Energia, who has been with us since the start and is encouraging us to expand our operations in Moju.

This week, we also welcomed a new customer, Ferbel Armazéns Gerais. After successful quality testing, they placed their first orders and plan to continue ordering from us. Ferbel is another major industrial player choosing to work with us, further confirming that we are on the right track.

Our operations in Brazil are progressing positively. However, despite being able to add Ferbel to our customer base, demand from potential new customers exceeds our current production capacity. Expanding our operations by establishing our next production facility next to the existing one in Moju is now our top priority.

Despite the strong demand, we have not yet successfully raised the necessary financing to complete our next facility. As a result, we regret that we are unable to fulfill large orders from potential customers we’ve been in discussions with for some time, all of whom are requesting significant volumes. This situation will persist until we secure the required funding to complete our second production facility in Moju.

We have been actively working to raise capital since the last unfulfilled share issues left us undercapitalized. To manage the current situation and direct all available funds toward our new facilities, we have implemented cost reductions across all areas, including salaries, throughout 2025. While we are making strong operational progress, our financial position remains tight.

As CEO, I am confident that we have proven the viability of our business model, with demand exceeding our expectations. I firmly believe in our business plan, but I also recognize that our company’s valuation depends on our ability to scale production, which remains a challenge. Expanding production in Moju, adding another facility in the Para region, and ultimately reaching profitability for both the company and our shareholders are crucial. Securing additional capital is, therefore, critical.

This spring, we will focus our efforts on share issues aimed at attracting both existing and new investors to help capitalize the company. We are optimistic about finalizing our second production facility in Moju soon and continuing to execute our business plan, which has already proven its viability.

We greatly appreciate your continued trust in Eternali as we work towards our long-term vision of becoming a leader in sustainable biomass production.

/Andreas Forssell, CEO, Eternali