Eternali carries out an issue of units to finance the start of operations

The board of Skogsaktiebolaget Eternali (publ) ("Eternali" or the "Company") has on January 24, 2023, with the support of authorization from the AGM on May 31, 2022, decided to issue units. The subscription period runs from today, January 25, up to February 17, 2023. With a fully subscribed unit issue, the Company will receive SEK 6 million before issue costs. The proceeds from the unit issue are intended to be used for the start of operational activities.

The following conditions in summary apply to the issue of units:

• Unit issue where each unit consists of one (1) newly issued share in the Company and one (1) newly issued warrant in the Company.
• Subscription of units runs from January 25 – February 17, 2023, through subscription form or digitally with Bank ID. The board reserves the right to extend the subscription period.
• The price for each unit is SEK 14.
• The warrants are delivered free of charge and each warrant gives the right to subscribe for one (1) new share in the Company at a subscription price of SEK 20 during the period April 3 – December 29, 2023. Administratively, allotment will be done monthly.
• Minimum subscription is 2,000 units, corresponding to SEK 28,000.
• The proceeds from the unit issue amount to approximately SEK 6.0 million before issue costs if fully subscribed. If all warrants are exercised, the Company will receive an additional SEK 8.6 million.
• The number of units offered amounts to a maximum of 429,000. If the offer is oversubscribed, the board has the right to decide to increase the number of units by maximum 335,000.

Representatives from the board, management and major shareholders have indicated interest to participate in the unit issue for a total amount of SEK 1.5 million, corresponding to 25 percent of the shares offered.

The board will primarily decide on allocation to the company's existing shareholders pro rata in relation to the number of shares held and secondarily to others who have registered an interest in subscribing for units in the issue.

If all units are subscribed in accordance with this offer, a shareholder who decides not to subscribe in this new issue will be diluted by 3.51%. Assuming full exercise of warrants, the dilution will amount to 6.78%.

Background and motive

The world is crying out for wood fiber and demand will increase. Eternali has the sustainable solution, where Brazil offers excellent conditions for fast-growing eucalyptus. Since 2020, Eternali has been active by mapping assets, establishing new offices, and building relationships with potential buyers.

In 2022, Eternali signed a letter of intent covering the delivery and sale of 2.5 million cbm eucalyptus over 4 years, corresponding to a sales value of SEK 2 billion. In December 2022, the first land asset acquisition was made.

With the acquisition completed and the great customer interest, the Company is now ready to start its operational activities. The upcoming unit issue, if fully subscribed, will provide the company with funds to cover the 2023 capex in relation to the newly acquired plantations. The Company has an ambition to raise debt in parallel to support the opex spending for the first shipments.

Miscellaneous

The Board's decision on issuance of units means that the Company's share capital can increase by a maximum of SEK 42,900, of which SEK 21,450 refer to the share issue and SEK 21,450 refer to the warrants. If over-allotment is used, the increase in the Company's share capital amounts to a maximum of SEK 33,500, of which SEK 16,750 refer to the share issue and SEK 16,750 refer to the warrants.

Issuing agent: Eminova Fondkommision AB.

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