WPTG completes a directed share issue of 1,494,262 new shares, raising proceeds of approximately 9.0 MSEK

The board of directors of White Pearl Technology Group AB (publ) ("WPTG" or the "Company") has today resolved to carry out a directed share issue of 1,494,262 new shares at a subscription price of SEK 6 per share, corresponding to a premium of approximately 13.2% compared to the volume-weighted average price (VWAP) for the WPTG share over the last 30 days, a premium of 4.35% compared to the 7-day VWAP, and a premium of 1.4% compared to the spot price. Through the directed share issue, WPTG will receive proceeds amounting to approximately SEK 8.97 million before transaction costs, which will be used to support the Company's growth initiatives and expansion plans. Total transaction costs are estimated at SEK 55,000.

The board of directors of WPTG has today, based on the authorisation granted by the extraordinary general meeting on November 8, 2024, resolved to carry out a directed share issue with deviation from the shareholders' preferential rights of 1,494,262 new shares to two strategic investors: Capmate AB and Yellowstone Investment Trust.

The subscription price has been determined through negotiations and agreements with the subscribing investors. The price, SEK 6.0, has been determined through negotiations with the investors, and the board of directors thus assesses that the subscription price fairly reflects prevailing market conditions and demand. Due to the current volatile market climate, compensation for guarantee commitments in a rights issue would likely exceed the value of the directed share issue. Therefore, the board assesses that the market value of the subscription price has been ensured. Payment of the subscription price shall be made in cash at the latest on December 20, 2024. The board of directors has the right to postpone the last date for payment.

The reasons for executing the directed issue and to deviate from the shareholders' preferential rights are as follows:

The Company's board has investigated and considered various financing alternatives, among other things, it has investigated the prerequisites for carrying out a successful rights issue (Swedish: Företrädesemission). Due to the prevailing market climate, the board considers that there are currently no suitable conditions for carrying out a rights issue on favourable terms. The board has noted that the majority of rights issues that have been carried out on the market have been negatively affected by the volatile market climate. In those cases where rights issues have been carried out, it has been noted that the market value of shares has fallen below subscription prices despite heavy discounts. As a result, the subscription rate outside of guarantee and subscription commitments has been low. It is, therefore, deemed beneficial to conduct a directed share issue to avoid exposure to price fluctuations in the market. Obtaining underwriting and guarantee commitments is a time-consuming and costly process. Taking into account that the subscription rate in rights issues on the market many times does not exceed the subscription and guarantee commitments, the board considers that it is not advantageous to pay compensation for the liquidity one expects to receive. Due to the above, the board does not consider it appropriate to carry out a rights issue under such conditions as described. The board assesses that a directed share issue ensures the most time- and cost-effective financing of the development of the Company.

The board also assesses that the signing investors have provided and are likely to continue to provide significant strategic, long-term value for the Company and its shareholders.

The board's overall assessment is that the above-mentioned reasons outweigh the reasons that justify the main principle that issues must be carried out with applicable shareholders' pre-emptive rights and that an issue with a deviation from shareholders' pre-emptive rights is, therefore, in the interests of the Company and all shareholders.

Through the directed issue, the number of shares and votes in the Company increases by 1,494,262 from 27,425,476 to 28,919,738, and the share capital increases with SEK 32,874 from SEK 603,360 to SEK 636,234. The directed issue results in a dilution for existing shareholders of approximately 5.17% of the number of shares and votes in the Company, based on the total number of shares and votes in the Company after the directed issue.

This disclosure contains information that White Pearl Technology Group AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication through the agency of the contact person on 8 December 2024 at 22:15 CET.

For more information on White Pearl Technology Group, please contact:
Marco Marangoni, CEO
Phone: +598 93 370 044
E-mail: marco.marangoni@whitepearltech.com

Investor Relations White Pearl Technology Group AB
E-mail: ir@whitepearltech.com
Phone: +46 707 340804

About White Pearl Technology Group AB (publ):
White Pearl Technology Group AB (WPTG) is a global technology company specialising in digital transformation solutions. With a presence in over 30 countries and a team of more than 650 experts, WPTG helps organisations navigate the complexities of the digital age, offering services ranging from ICT and system integration to business software and digital innovation. For more information, see www.whitepearltech.com.

White Pearl Technology Group AB (publ) is listed on the Nasdaq First North Growth Market.

The Company's Certified Adviser is Amudova AB, Box 5855, SE-102 40 Stockholm, Sweden, tel: +46 (0)8-546 017 58, info@amudova.se