Katalysen Ventures completes a directed share issue of 271 214 new shares, raising proceeds of approximately SEK 7.6 million

The board of directors of Katalysen Ventures AB (publ) (”Katalysen” or the ”Company”) has today resolved to carry out a directed share issue of  271 214 new shares at a subscription price of SEK 28.0 per share corresponding to a discount of approximately 11.7% compared to the the volume-weighted average price for the KAV share over the period 2022-10-03 to 2022-10-24. Through the directed share issue, Katalysen will receive proceeds amounting to approximately SEK 7.6 million before transaction costs. Total transaction costs are estimated at SEK 400 000.

The board of directors of Katalysen has today, based on the authorization granted by the annual general meeting on 12 May 2022, resolved to carry out a directed share issue with deviation from the shareholders’ preferential rights of 271 214 new shares to a group of international institutional investors.

The subscription price has been determined through negotiations and agreement with the subscribing investors. The price, SEK 28.0, corresponds to a discount of approximately 11.7% compared to the volume-weighted average price for the KAV share over the period 2022-10-03 to 2022-10-24, and the board of directors thus assesses that the subscription price fairly reflects prevailing market conditions and demand. Due to the current volatile market climate, the cost for securing underwriters (Swedish: garanter) would likely have been greater than the discount offered in the directed share issue. Therefore, it is the board's assessment that the market value of the subscription price has been ensured. Payment of the subscription price shall be made in cash at the latest on 3 November 2022. The board of directors has the right to postpone the last date for payment.

The reason for executing the directed issue and to deviate from the shareholders’ preferential rights are as follows:

The Company's board has investigated and considered various financing alternatives, among other things it has investigated the prerequisites for carrying out a successful rights issue (Swedish: företrädesemission). Due to the prevailing market climate, the board considers that there are currently no suitable conditions for carrying out a rights issue on favorable terms. The board has noted that the majority of rights issues that have been carried out on the market have been negatively affected by the volatile market climate. In those cases where rights issues have been carried out, it has been noted that the market value of shares have fallen below subscription prices despite heavy discounts. As a result, the subscription rate outside of guarantee and subscription commitments has been low. It is therefore deemed beneficial to conduct a directed share issue to avoid exposure to price fluctuations in the market. Obtaining underwriting and guarantee commitments is a time-consuming and costly process. Taking into account that the subscription rate in rights issues on the market many times does not exceed the subscription and guarantee commitments, the board considers that it is not advantageous to pay compensation for the liquidity one expects to receive. Due to the above, the board does not consider it appropriate to carry out a rights issue under such conditions as described. The board's assessment is that a directed share issue ensures the most time- and cost-effective financing of the development of the Company.

The board also assesses that the signing investors are likely to provide significant strategic, long-term value for the Company and its shareholders. Participating investors include:

• Alex Schütz through his family office, Mr Schütz is the founder of C-Quadrat Investment Group with over EUR 8 billion in assets under management. Mr Schütz is an active and well-known investor in tech companies. Collaboration between Mr Schütz and Katalysen Ventures regarding a venture fund is in discussion.
• Klemens Hallmann, a highly public entrepreneur and philanthropist, and the founder and sole owner of Hallmann Corporate Group, one of Austria’s leading groups of companies with investments in real estate, finance, technology and film production.
• Philippe Givel, former Global Head of Risk of trading and sales at a leading wealth manager and private bank. Mr Givel has a wealth of expertise relating to risk management and banking.

The board's overall assessment is that the above-mentioned reasons outweigh the reasons that justify the main principle that issues must be carried out with applicable shareholders' pre-emptive rights and that an issue with a deviation from shareholders' pre-emptive rights is therefore in the interests of the Company and all shareholders.

Through the directed issue, the number of shares and votes in the Company increases with 271 214 from 5 570 995 to 5 842 209, and the share capital increases with SEK 35 257,82 from SEK 724 229,35 to SEK 759 487,17. The directed issue results in a dilution for existing shareholders of approximately 4.6% of the number of shares and votes in the Company, based on the total number of shares and votes in the Company after the directed issue.

This disclosure contains information that Katalysen Ventures AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 24-10-2022 22:15 CET.