Warrants of series (2020:2) TO2 B we subscribed to approximately 94.9 percent and TerraNet Holding AB receives approximately SEK 38.3 million

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TerraNet Holding AB (”TerraNet” or the ”Company”) today announces the outcome of the exercise of warrants of series TO2 B, which were issued in connection with the Company’s preferential rights issue during the second quarter of 2020. In total, 47,906,993 warrants of series TO2 B were exercised, corresponding to approximately 94.9 percent of the total number of outstanding warrants of series TO2 B, for subscription of 47,906,993 B-shares at a subscription price of SEK 0.80 per B-share. TerraNet will receive approximately SEK 38.3 million before issuing costs through the exercise of the warrants of series TO2 B.

Background

At the 2020 annual general meeting, it was resolved to approve the board of directors' resolution to carry out a preferential rights issue of units. Each unit consisted of two (2) shares, one (1) warrant of series TO1 B, one (1) warrant of series TO2 B, and one (1) warrant of series TO3 B. The subscription period for exercise of the warrants of series TO2 B took place from March 8, 2021 up to and including March 19, 2021. The subscription price per B-share for exercising the warrants of series TO2 B was set to SEK 0.80.

In total, 47,906,993 warrants of series TO2 B were exercised for subscription of 47,906,993 B-shares, meaning that approximately 94.9 percent of all outstanding warrants of series TO2 B were exercised for subscription of B-shares.

Exercised warrants have been replaced with interim shares (IA), pending registration with the Swedish Companies Registration Office. The interim shares are expected to be converted to B shares within approximately three (3) weeks.

Number of shares, share capital and dilution
Through the exercise of the warrants of series TO2 B, the number of shares in TerraNet increases by 47,906,993 shares, from 217,006,263 (consisting of 1,170,963 A-shares and 215,835,300 B-shares) to a total of 264,913,256 shares. The share capital will increase by SEK 479,069.93, from SEK 2,170,062.63 to SEK 2,649,132.56.

For existing shareholders who did not exercise any warrants of series TO2 B, the dilution amounts to approximately 18.1 percent based on the number of shares following exercise of the warrants of series TO2 B.

Advisers
Mangold Fondkommission is the financial adviser for TerraNet regarding the warrants.

For questions regarding the warrants, please contact:
Mangold Fondkommission AB
Tel: +46 8 5030 1595
E-mail: emissioner@mangold.se

For further information about TerraNet, please contact:
Pär-Olof Johannesson
Tel: +46 70 332 32 62
E-mail: parolof.johannesson@terranet.se

This information is such that TerraNet Holding AB is required to make public in accordance with the EU's Market Abuse Regulation (MAR). The information was made public by the Company's contact person above on March 26th, 2021 at 7.00 AM CET.

About TerraNet

TerraNet develops software for radio-based solutions and three-dimensional image analysis for advanced driver-assistance systems and autonomous vehicles (ADAS and AV). In-line with Scandinavia’s rich history of bringing innovative safety measures to the automobile industry, TerraNet is pioneering breakthrough safety technology VoxelFlow™ for the ADAS and AV industries at its headquarters in Lund, Sweden and its development sites in Kyiv, Ukraine and Stuttgart, Germany. TerraNet Holding AB (publ) is listed on the Nasdaq First North Premier Growth Market (Nasdaq: TERRNT-B.ST).

You can now subscribe to TerraNet’s newsletter, sign up at: www.terranet.se/en/ir-2/

Certified Adviser: Mangold Fondkommission AB, 08-503 015 50, ca@mangold.se.
Important information

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who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.

Forward-looking statements

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Information to distributors

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended (“MiFID II”); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the “MiFID II Product Governance Requirements”), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any “manufacturer” (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the shares in Company have been subject to a product approval process, which has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the “Target Market Assessment”). Notwithstanding the Target Market Assessment, distributors should note that: the price of the shares or warrants in TerraNet may decline and investors could lose all or part of their investment; the shares or warrants in TerraNet offer no guaranteed income and no capital protection; and an investment in the shares or warrants in TerraNet is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who
have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the units issue.

For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares or warrants in TerraNet.

Each distributor is responsible for undertaking its own Target Market Assessment in respect of the shares or warrants in TerraNet and determining appropriate distribution channels.