Rights Issue 2022

Pierce Group AB (publ) (“Pierce” or “the Company”), announced on the 10th of May 2022 that the Board has decided to carry out a new share issue of up to SEK 350 million with preferential rights for the Company’s existing shareholders (the “Rights Issue”), subject to approval by an extraordinary general meeting. The purpose of the Rights Issue is, considering the global uncertainty, to reduce Pierce’s net debt, increase Pierce’s interest coverage ratio and strengthen the Company’s financial capacity to continue Pierce’s long-term growth strategy and implement measures to increase Pierce’s profitability. The Company’s largest shareholder, Procuritas, supports the issue and has expressed its’ intention to subscribe for its pro-rata share.

“We mainly intend to use the net proceeds from the Rights Issue to reduce our indebtedness. This would place us in a better position to manage well-known industry challenges, such as previously communicated increases in costs for raw materials and freight, as well as supply-chain disruptions. The Rights Issue also improves our ability to manage other unpredictable future events”, says CEO Henrik Zadig.

Summary

• The Rights Issue is carried out to reduce Pierce’s net debt, increase Pierce’ s interest coverage ratio and strengthen the Company’s financial capacity to carry out Pierce’s long-term growth strategy and implement strategic initiatives to increase Pierce’s profitability.
• The Company’s largest shareholder Procuritas^[1], which as of 10 May 2022 represented approximately 33 percent of the total number of shares and votes in the Company, has expressed its support for the Rights Issue, and its’ intention to subscribe for its pro rata share, approximately 33 percent of the Rights Issue, and to vote in favor of the issue resolution at the extraordinary general meeting.
• The full terms for the issue, including subscription price, increase in share capital and number of shares are expected to be announced around 27 May 2022. Provided that the Rights Issue is approved by the extraordinary general meeting, the record date for the Rights Issue is expected to be 10 June 2022 and the subscription period will run from 14 June 2022 until 28 June 2022.
• The Board intends to summon an extraordinary general meeting to be held on 3 June 2022.Preliminary timetable for the Rights Issue.

^{[1] “Procuritas” refers to Procuritas Capital Investors V LP with its General Partner Procuritas Capital Investors V GP Limited together with PCI V Co- Investment AB.}

Preliminary timetable for the Rights Issue