STOCKHOLM, SWEDEN: Hexatronic Group AB announced intention to carry out a directed share sales of approximately SEK 500 million to Swedish and international institutional investors to increase financial flexibility for further acquisitions and expansion in U.S.

Hexatronic has engaged ABG Sundal Collier AB and Pareto Securities AB to act as Joint Bookrunners in connection with the Directed Share Issue.

Hexatronic announced intention to carry out a directed share issue of approximately SEK 500 million, directed at qualified investors in Sweden and internationally, with deviation from existing shareholders’ preferential rights and in accordance with the issue authorisation granted by the Annual General Meeting on May 6, 2021.

Hexatronic has engaged ABG Sundal Collier AB and Pareto Securities AB to investigate the possibilities to conduct the Directed Share Issue.

The subscription price for the new shares in the Directed Share Issue is to be determined through an accelerated book building procedure, which began on Monday

The Directed Share Issue is contingent on a resolution by the board of directors, which, alongside pricing and allocation, is expected to occur prior the commencement of trading on Nasdaq Stockholm on November 9, 2021. The board of directors can at any time choose to cancel the book building procedure, close earlier or later and refrain from executing the Directed Share Sales, in part of in full.

The Company intends to use the net proceeds from the Directed Share Issue to increase the Company’s financial flexibility for further acquisitions, to establish a new plant for micro duct production in the U.S. that will be up and running in Q3 2022, for investments in increased production capacity based on high demand mostly from growth markets, and for general corporate purposes to support growth opportunities.

Hexatronic Group AB is a group that develops, markets and delivers products, components and system solutions with the main focus on the fiber optic market.

The Group has its headquarters in Gothenburg, Sweden and has sales offices and/or subsidiaries in Sweden, Norway, Denmark, Finland, United Kingdom, the Netherlands, Italy, Estonia, Latvia, Lithuania, Germany, China, New Zealand, Australia, U.S. and Canada. The Group is listed on Nasdaq Stockholm under the ticker HTRO.