MTI Investment SE has signed a term sheet with the intention of acquiring 56 percent ownership, valued at SEK 1.2 million, in Techbridge Invest AS

MTI INVESTMENT SE HAS SIGNED A TERM SHEET WITH THE INTENTION OF ACQUIRING 56 PERCENT OWNERSHIP, VALUED AT SEK 1.2 MILLION, IN TECHBRIDGE INVEST AS

In 2021, Techbridge Invest AS had revenues of NOK 5.4 million (EUR 540.000) with an operating profit of NOK 181.000 (EUR 18.000). Most of the revenues comes private and public grants supporting Techbridge's accelerator programs in East Africa. In terms of investments, Techbridge has a 5 percent holding in Pangea Angels 1, which in turn owns 12.9 percent in WorkPay. Techbridge also owns 44 percent in Sunergetic AS, which in turn owns 80 percent of Sunami Uganda and 76 percent in Sunami Kenya. Techbridge directly owns 20 percent in Sunami Uganda.

The parties involved in the transaction have agreed to carry out a share swap at book equity value. The 56 percent stake in Techbridge Invest AS is valued at SEK 1.2 million (EUR 120.000), which in the share swap corresponds to 319.429 shares in MTI Investment SE, or a shareholding of 5.6 percent in MTI Investment. MTI's total outstanding number of shares would thus increase by 5.9 percent. The share subscription and other relevant agreements are expected to be finalized by 1 November 2022. If a maximum of 319.429 new shares are emitted, MTI's share capital increases by EUR 63.885,8. A decision to issue the needed shares falls within the board's authorization from the annual general meeting on June 9, 2022.

Six strong reasons to acquire 56 percent ownership in Techbridge Invest AS:

1. Improved pipeline and access to investable businesses in East Africa with a cash flow positive investment
2. Better geographical diversification by extending MTI's investments to Kenya and Uganda
3. Potential for synergy between MTI's staff and Techbridge's experienced local team in Kenya, and a Norwegian CEO based in Uganda.
4. More opportunities to expand accelerator programs in the region
5. Cash flow positive grants funded business
6. Exposure to investments in fintech and solar energy, improving portfolio diversification.

Techbridge Invest has more than 5 years of experience in investing and building up organizations in East Africa. To date, Techbridge has incubated and accelerated more than 1000+ entrepreneurs and over 100+ technology start-ups in East Africa and holds a portfolio of promising technology ventures. Techbridge with a local team in Mombasa, Kenya, and Kampala, Uganda, is responsible for running an accelerator program and also has investments in tech and solar energy. MTI and Techbridge have previously announced a closer collaboration around accelerator programs in the region, leveraging our different experience and sector knowledge, to build and invest in emerging industries across East Africa for financial and impact returns.

Techbridge Invest CEO Frøydis D. Archer says: "We welcome MTI as a new shareholder in Techbridge and look forward to a stronger collaboration around accelerator programs and investments in East Africa."

MTI Investment's CEO Pontus Engström says: "With this transaction, we are firmly more committed to partner with Techbridge Invest and its team around both the accelerator programs and more investments in the region. As part of this transaction, MTI will also gain more exposure in the areas of tech and solar energy, through some of the holdings in Techbridge. This provides for more diversification in our portfolio."

Certified Adviser
The Company's Certified Adviser is Mangold Fondkommission AB which can be reached at 08-5030 1550 and by e-mail [email protected].

For additional information
Pontus Engström, CEO, MTI Investment SE
[email protected]
+46 70 716 55 38

The following documents can be retrieved from beQuoted
PR-Techbridge-MTI-Investment-SE.pdf