Eternali Conducts New Share Issue to Finance the Establishment of Additional Wood Chip Facilities

The Board of Directors of Skogsaktiebolaget Eternali (publ) (“Eternali” or “the Company”) has, on September 3, 2024, with the support of authorization from the Annual General Meeting on June 28, 2024, decided to conduct a share issue. The subscription period runs from today, September 4, until October 15, 2024. If fully subscribed, the Company will receive SEK 5.,5 million before issue costs. The proceeds from the share issue will be used to invest in two new wood chip facilities to rapidly expand the operational business for biomass production.

Key terms of the share issue

• Issuance of new shares in the Company.

• The subscription price for each share is SEK 15 SEK.

• The minimum subscription is 2,000 shares, corresponding to SEK 30,000 SEK.

• Subscriptions must be made during the period from September 4 – October 15, 2024, either via a subscription form or digitally with Swedish Bank-ID. The Board of Directors reserves the right to extend the subscription period.

• Allocation of shares will be done on a “first come, first served” basis, meaning the subscription period may be shortened.

• The proceeds from the share issue could amount to approximately SEK 5.5 million before issue costs if fully subscribed.

• The maximum number of shares offered is 366,667.

If all shares are subscribed according to this offer, a shareholder who chooses not to participate in this share issue will be diluted by 2.52%.

Background and Purpose

Eternali has now reached an exceptionally exciting position for growth in the wood raw materials market. During the summer, the company financed and built its first facility for wood chips/biomass production in the city of Moju, near Belém in Brazil. This facility will soon be fully operational and will then deliver biomass directly to awaiting customers in the Moju area.

The start-up of the new wood chips facility is an important step for Eternali, demonstrating the Company’s ability to navigate commercial conditions and laying a solid foundation for further expansion of this business area through the establishment of additional wood chips facilities. Brazil is one of the world’s largest markets for biomass, and Eternali has already identified several locations where the availability of sourcing and customers aligns with the Company’s expansion strategy. Alongside the development of the biomass and wood chips business area, Eternali continues to advance its business area for transatlantic deliveries of eucalyptus timber, with an ongoing certification process in collaboration with the independent organization FSC.

The upcoming share issue will, if fully subscribed, provide the Company with the funds needed to establish two additional wood chips facilities. Afterward, the continued expansion of the wood chips/biomass business area, through the establishment of additional facilities in northern Brazil, will be financed from the Company’s own cash flow.

Application and More Information

For the application form and more information, visit www.eternali.se and www.eminova.se. Subscription can also be made digitally with Swedish Bank-ID via www.eminova.se.

Other Information

The Board’s decision to issue new shares means that the Company’s share capital could increase by a maximum of SEK 18,333.35, from SEK 708,656.75 to SEK 726,990.10, and the number of shares could increase by 366,667 shares, from 14,173,135 shares to 14,539,802 shares.

The issuing agent is Eminova Fondkommission AB.