Terranet’s Board of Directors have decided to carry out a directed issue of units to underwriters in connection with the completed rights issue

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Terranet AB ("Terranet" or the "Company") has, as previously communicated, completed the rights issue of units, consisting of shares and warrants of series TO6 and TO7, which the board decided on May 17, 2023 (the "Rights Issue"). In accordance with the underwriting agreements that has been entered into in connection with the Rights Issue, Terranet's board of directors has today decided on a directed issue of units to underwriters in the Rights Issue who have chosen to receive underwriting compensation in the form of new units (the "Compensation Issue"). The subscription price in the Compensation Issue has been set to the same subscription price as in the Rights Issue, SEK 0.90 per unit which corresponds to a subscription price of SEK 0.18 per share, and payment is made by offsetting the underwriters’ claims regarding underwriting compensation.

As previously communicated in connection with the Rights Issue, the underwriters, in accordance with the underwriting agreements entered into, had the opportunity to choose to receive underwriting compensation in the form of cash compensation or in the form of new units. Several of the underwriters has chosen to receive the underwriting compensation in the form of new units. Due to this, the Board, relying on the authorization from the annual general meeting held on May 10, 2023, has today resolved on the Compensation issue, which includes a total of 2,272,887 new units. Each unit in the Compensation Issue consists of five (5) shares of series B, three (3) warrants of series TO6 and three (3) warrants of series TO7. A total of 11,364,435 shares, 6,818,661 warrants of series TO6 and 6,818,661 warrants of series TO7 have been issued in the Compensation Issue. Payment in the Compensation Issue have been made by offsetting the underwriters’ claims against the Company for underwriting compensation. The subscription price was set to SEK 0.90 per unit, which corresponds to a subscription price of SEK 0.18 per share and corresponds to the subscription price in the Rights Issue. In light of this, the Board considers that the subscription price is in line with market value. All units in the Compensation Issue have been subscribed and allocated.