Interim report for the period January 1 - September 30, 2022

With a fully funded business plan, Cinis Fertilizer can now take the next step in establishing the first production facility, located in Örnsköldsvik. The project is proceeding according to plan, and we have now been informed that the main hearing in the case linked to Cinis Fertilizer's environmental permit for Örnsköldsvik will be held in March 2023, which is positive. Planning is also underway for production facility number two, which will be located in Skellefteå.

July – September

• Net sales amounted to SEK 0 million (-)*
• Operating profit/loss amounted to SEK -3.0 million (-0.0)*
• Profit/loss after financial items amounted to SEK -3.0 million (-)*
• Earnings per share, before and after dilution, amounted to SEK -2.1 (-)*
• Cash flow from operating activities after changes in working capital amounted to SEK -7.6 million (-)*

*The group was formed on December 23, 2021

January – September

• Net sales amounted to SEK 0 million (-)*
• Operating profit/loss amounted to SEK -15.3 million (-)*
• Profit/loss after financial items amounted to SEK -15.3 million (-)*
• Earnings per share, before and after dilution, amounted to SEK -10.8 (-)*
• Cash flow from operating activities after changes in working capital amounted to SEK -29.0 million (-)*

*The group was formed on December 23, 2021

Significant events during the quarter

• The environmental permit application for the second planned production facility in Skellefteå was announced by the Land and Environment Court
• The company was granted a loan of SEK 300 million from Nordea and The Swedish Export Credit Corporation with a green credit guarantee from The Swedish Export Credit Agency

Significant events after the quarter

• On October 21, Cinis Fertilizer was listed on Nasdaq First North Growth Market. In connection with the listing a heavily oversubscribed share issue was completed, and the company received SEK 460 million before transaction costs (including over-allotment option)
• The Land and Environment Court announced that the main hearing in the case linked to Cinis Fertilizer's environmental permit for the production facility in Örnsköldsvik is to be held in March 2023
• The over-allotment option in connection with Cinis Fertilizer's listing and share issue was fully exercised

CEO's comment

SECURED FINANCING ENABLES OUR GROWTH JOURNEY

Our purpose and our vision at Cinis Fertilizer is to enable sustainable agriculture by decarbonizing plant nutrition. We have now taken a big step forward towards that as we secured the funding of our long-term business plan through the listing on Nasdaq First North Growth Market and the loan from Nordea and the Swedish Export Credit Corporation. This also means that the construction of our first production plant for fossil-free mineral fertilizer can start.

In September, we were granted a loan of SEK 300 million by the Swedish Export Credit Corporation and Nordea, with a green credit guarantee from the Swedish Export Credit Agency. Shortly thereafter we carried out a share issue and listed the company on Nasdaq First North Growth Market. The share issue was heavily oversubscribed, and the company received SEK 460 million before transaction costs. We are proud of the great interest in participating in Cinis Fertilizer's listing and share issue, and I want to take the opportunity to extend a warm welcome to all new shareholders on our continued growth journey. It is incredibly gratifying to see the range of players who have chosen to support our venture in circular and fossil-free potassium sulfate (SOP) produced in Sweden. Lenders as well as private individuals and institutional investors in several countries clearly signal that the green transition is important, and that Cinis Fertilizer is part of the solution.

With the financing in place, we are now taking the next step in the establishment of our first production facility in Örnsköldsvik. The project team together with our suppliers are preparing for the start of construction. We have now been able to place the first major orders with our process supplier, which is of great importance for the project's execution and schedule. At the beginning of November, the Land and Environment Court also announced that they are planning for a main hearing in March 2023. We are pleased to now have a clear timetable for the first environmental permit to adhere to. With the main hearing in March, we make the assessment that our timetable, with the start of production in the first quarter of 2024, still holds, as the longest lead times in the project are related to delivery of process equipment and not construction time.

At the beginning of July, the environmental permit application for our second production facility, in Skellefteå, was also announced by the courts. This means that production facility number two is also moving forward according to plan.

At the moment, there is a great demand for sustainable and locally produced mineral fertilizers that can contribute to strengthening Sweden's and Europe's independence while reduce the carbon footprint of agriculture. With a strong project team and funding in place, we can finally start contributing to just this. We have an ambitious plan ahead of us and look forward to enabling more sustainable agriculture step by step.

Jakob Liedberg, CEO

For full report, please see attached file below.

For more information, please contact:

Jakob Liedberg, CEO
[email protected]
+46 768 58 12 86

Charlotte Becker, IR & Communications Director
[email protected]
+46 730 37 07 07

Henrik Andersson, CFO
[email protected]
+46 705 70 87 53

This information is such information that Cinis Fertilizer is obliged to make public pursuant to the EU’s Market Abuse Regulation. This report has been prepared with a Swedish and an English version. In the event of any discrepancies between the two, the Swedish version applies. This information was published, through the agency of the contact persons above, on November 30, 2022 at 08:00 CET.

About Cinis Fertilizer
Cinis Fertilizer is a Swedish green tech company aiming to produce the world’s most environmentally friendly mineral fertilizer, potassium sulphate (SOP), by recycling industrial waste products from the pulp & paper industry as well as the car battery manufacturing industry. The patent protected technology will use half as much energy as today’s production methods and the result is a fossil-free fertilizer with a close to zero carbon footprint, a unique and circular contribution enabling sustainable agriculture. FNCA Sweden AB is Certified Adviser. For more information, visit www.cinis-fertilizer.com.