AXA - Increase in share capital related to the Tranche 1 of the private placement

Reference is made to the stock

exchange announcement from Axactor AB ("Axactor" or the

"Company") published 13 October 2016 regarding the

successfully completed private placement of 230,000,000 new

shares (the "Private Placement Shares") at a price of NOK

2.60 per share (the "Private Placement"). Carnegie and DNB

Markets (the "Managers") acted as joint bookrunners in the

Private Placement.

The Private Placement is divided into i) a Tranche 1

consisting of 71.7 million Private Placement Shares, and ii)

a Tranche 2 consisting of 158.3 million Private Placement

Shares.

The Company has received confirmation that the share capital

increase of SEK 35,861,946 divided into 71,723,893 Private

Placement Shares related to Tranche 1 of the Private

Placement has been registered by the Swedish Companies

Registry. The 71,723,893 Private Placement Shares are

consequently tradeable. The new registered share capital of

Axactor is consequently SEK 509,106,331 divided into

1,018,212,662 shares, each with a par value of SEK 0.50.

The payment and registration of the Private Placement Shares

has been done based on pre-funding from the Managers. As

previously announced, the Company and the Managers have

entered into an agreement related to pre-funding of the

payment for the Private Placement Shares (the "Pre Funding

Agreement"). The Pre Funding Agreement regulates inter alia

certain rights and obligations of the Company and the

Managers related to the pre-funding.

The Private Placement Shares in Tranche 1 will be settled

through a delivery versus payment transaction expected on or

about 19 October 2016.

The Tranche 2 Private Placement shares are tradable once the

share capital has been registered in the Swedish Companies

Registry and the listing prospectus has been approved by the

Swedish Financial Supervisory Authority and published,

expected within November 2016. The Private Placement Shares

in Tranche 2 will be settled through a delivery versus

payment transaction following the registration of the share

capital and approval of the prospectus.

Please see the stock exchange notice from Axactor on 17

October 2016 for further details regarding the subsequent

offering of 50,000,000 new shares directed towards

shareholders in the Company as of close of trading on 12

October 2016 and as registered in the VPS on 14 October 2016

(the "Record Date") who were not allocated shares in the

Private Placement, whether they had subscribed for shares in

the Private Placement or not, and who are not resident in a

jurisdiction where such offering would be unlawful, or would

(in jurisdictions other than Sweden or Norway) require any

prospectus filing, registration or similar action (the

"Eligible Shareholders").

For further information, please contact:

Endre Rangnes

Chief Executive Officer

Mail: endre.rangnes@axactor.com

Tel: +46 8 402 28 00

Cell Phone: +47 48 22 11 11

Geir Johansen

Chief Financial Officer

Mail: geir.johansen@axactor.com

Cell Phone: +47 477 10 451

Cautionary Statement: Statements and assumptions made in this

document with respect to Axactor AB's ("Axactor") current

plans, estimates, strategies and beliefs, and other

statements that are not historical facts, are forward-looking

statements about the future performance of Axactor. Forward-

looking statements include, but are not limited to, those

using words such as "may", "might", "seeks", "expects",

"anticipates", "estimates", "believes", "projects", "plans",

strategy", "forecast" and similar expressions. These

statements reflect management's expectations and assumptions

in light of currently available information. They are subject

to a number of risks and uncertainties, including, but not

limited to, (i) changes in the economic, regulatory and

political environments in the countries where Axactor

operates; (ii) changes relating to the statistic information

available in respect of the various debt collection projects

undertaken; (iii) Axactor's continued ability to secure

enough financing to carry on its operations as a going

concern; (iv) the success of its potential partners, ventures

and alliances, if any; (v) currency exchange rate

fluctuations between the SEK and the currencies in other

countries where Axactor or its subsidiaries operate. In the

light of the risks and uncertainties involved in the debt

collection business, the actual results could differ

materially from those presented and forecast in this

document. Axactor assumes no unconditional obligation to

immediately update any such statements and/or forecasts.