FirstFarms A/S secures large capital injection from the Heartland Group and positions itself for strong growth

Heartland Group invests 186 mDKK in FirstFarms.

With the capital injection in the form of a directed share issue and issuance of convertible bonds (as further described below), FirstFarms is strongly positioned to execute on its ambitious “Strategy 2028”,
with the purpose to increase turnover and earnings by 100 percent. This will be achieved through organic growth and acquisitions. It is accordingly agreed that the gross proceeds of 186 mDKK shall be used for FirstFarms' further development and implementation of FirstFarms' strategy.

Simultaneously, FirstFarms will continue its development towards a more sustainable operation.

"It is with pleasure and pride that we have attracted such a large and recognised investor. We share values with the Heartland Group and have a common interest in farmland, agriculture, nature and the environment. With the Heartland Group as a major shareholder, our ability to execute our plans and achieve our goals is strengthened."
"The capital injection also provides the basis for our vision of developing into one of Europe's best operated and most profitable companies in the area of agriculture and food products," says Anders H. Nørgaard, CEO, FirstFarms A/S.

With the capital injection, Constantinsborg A/S ("Constantinsborg"), a member of the Heartland Group, obtains an ownership stake in FirstFarms of 10.77 percent of the share capital. If Constantinsborg chooses to exercise the right to convert the bond to shares, Constantinsborg will obtain an ownership stake of 18.78 percent based on the number of shares subscribed for in the directed share issue.

"At Heartland, we are excited about the investment in FirstFarms, which is aiming at establishing itself as one of Europe's best-run companies within agriculture and food. At the same time, and of no less importance to us, FirstFarms addresses and works ambitiously with the necessary (climate)transition that the agriculture is facing. We look forward to following and being a part of this," says Lise Kaae, CEO Heartland A/S.

The capital injection is made by the Board of Directors' decision today to increase FirstFarms’ share capital with nominally DKK 12,000,000 new shares of nominally DKK 10.00 each ("New Shares") against cash payment of DKK 81 per share through a directed share issue from FirstFarms to Constantinsborg.

Simultaneously, the Board of Directors in FirstFarms has decided to take out a loan of DKK 89,100,000 from Constantinsborg against issuance of convertible bonds without pre-emptive rights for existing shareholders and to carry out the associated capital increase of maximum nominal DKK 11,000,000.