TerraNet enters into a loan agreement to finance the acquisition of 10.84% of holoride and issues two series of warrants free of charge

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TerraNet Holding AB (”TerraNet” or the ”Company”) has entered into a loan agreement of SEK 35 million with Formue Nord A/S (the “Lender”) to finance the Company’s acquisition of 10.84% of holoride as communicated in a separate press release (the “Loan”). Further, the Company has, with support from the authorization received from the annual general meeting on May 15, 2020, decided to issue warrants in two series, series TO4 B and series TO5 B. A total of 14,319,634 warrants of series TO4 B and 12,321,546 warrants of series TO5 B will be issued (the “Warrants”). The Warrants will be distributed equally between the Lender and the current shareholders of the Company. The record date for current shareholders to receive warrants of series TO4 B and TO5 B free of charge will be communicated through a separate press release as soon as possible.

The Loan

As communicated through a separate press release, the Company has entered into an agreement regarding an acquisition of 10.84% of the shares of holoride. To finance the acquisition, the Company has procured a loan of SEK 35 million from the Lender. A set-up fee of 3.0% is charged upon signing of the loan agreement, and the Loan has a fixed interest rate of 0.6% as per the beginning of each 30-day period. Additionally, the Lender will receive 7,159,817 warrants of series TO4 B and 6,160,773 warrants of series TO5 B (the same series that will be issued to current shareholders) as part of the financing arrangement.

Warrants to current shareholders in TerraNet
The Company has decided to issue warrants, free of charge, of series TO4 B and TO5 B (the same series that the Lender receives) to current shareholders of the Company. In total 7,159,817 warrants of series TO4 B and 6,160,773 warrants of series TO5 B will be issued to the current shareholders, which will, to some extent, compensate the shareholders for the dilution that the Warrants issued to the Lender entail.