Axactor - Allocation of shares in the subsequent offering

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN

PART DIRECTLY OR INDIRECTLY, IN AUSTRALIA, CANADA, JAPAN OR

THE UNITED STATES

Oslo, 13 December 2016 - Reference is made to the stock

exchange releases from Axactor AB (publ) ("AXA" or the

"Company") published 13 October 2016 regarding the

preliminary results of the subsequent repair offering of up

to 50,000,000 new shares ("Offer Shares") in the Company (the

"Subsequent Offering").

The subscription period in the Subsequent Offering expired at

16:30 hours (CET) yesterday, 12 December 2016.

Based on the Subsequent Offering being oversubscribed, the

Board of Directors has resolved to allocate and issue

50,000,000 shares at NOK 2.60 per Offer Share raising gross

proceeds of NOK 130,000,000. The allocation of the Offer

Shares was made according to the allocation principles set

out in the prospectus dated 25 November 2016.

Cipriano AS, a company owned by the Chairman of the Board of

Directors, Einar J. Greve, was allocated 1,950,084 Offer

Shares in the Subsequent Offering and will after the

completion of the Subsequent Offering hold 15,600,084 shares

in the Company representing 1.3% per cent of the share

capital of the Company after completion of the Subsequent

Offering.

Solan Capital AS, a company owned by the member of Board of

Directors, Gunnar Hvammen, was allocated 5,143,079 Offer

Shares in the Subsequent Offering and will after the

completion of the Subsequent Offering hold 41,143,079 shares

in the Company representing 3.4% per cent of the share

capital of the Company after completion of the Subsequent

Offering.

Alpette AS, a company owned by the CEO, Endre Rangnes, was

allocated 1,278,187 Offer Shares in the Subsequent Offering

and will after the completion of the Subsequent Offering hold

16,616,431 shares in the Company representing 1.4% per cent

of the share capital of the Company after completion of the

Subsequent Offering.

Latino Invest AS, a company owned by Executive Vice

President, Strategy & Projects Johnny Tsolis, was allocated

800,000 Offer Shares in the Subsequent Offering and will

after the completion of the Subsequent Offering hold

10,300,000 shares in the Company representing 0.8% per cent

of the share capital of the Company after completion of the

Subsequent Offering.

All subscribers being allocated Offer Shares will receive an

allocation letter confirming the number of Offer Shares

allocated to the subscriber and the corresponding amount to

be paid. This allocation letter is expected to be distributed

today, 13 December 2016.

Payment of the Offer Shares will fall due on or about 16

December 2016. The Offer Shares are expected to registered in

the Swedish Companies Registry on or about 23 December 2016.

Delivery of the Offer Shares to investors' accounts in the

Norwegian Central Securities Depository (VPS) is expected to

take place on or about 28 December 2016. Trading in the Offer

Shares on the Oslo Stock Exchange is expected to commence on

or about 28 December 2016 under the trading symbol "AXA".

Following registration of the share capital related to the

Subsequent Offering, the Company will have 1,226,488,769

shares outstanding with a par value of SEK 0.50 per share.

The total share capital will thus be SEK 613,244,384.50

following completion of the Subsequent Offering.

Carnegie and DNB Markets acted as Managers for the Subsequent

Offering.

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 47 71 04 51

Important information:

The release is not for publication or distribution, in whole

or in part directly or indirectly, in or into Australia,

Canada, Japan or the United States (including its territories

and possessions, any state of the United States and the

District of Columbia).

This release is an announcement issued pursuant to legal

information obligations, and is subject of the disclosure

requirements pursuant to section 5-12 of the Norwegian

Securities Trading Act. It is issued for information purposes

only, and does not constitute or form part of any offer or

solicitation to purchase or subscribe for securities, in the

United States or in any other jurisdiction.

The securities mentioned herein have not been, and will not

be, registered under the United States Securities Act of

1933, as amended (the "Securities Act"). The securities may

not be offered or sold in the United States except pursuant

to an exemption from the registration requirements of the

Securities Act. The Company does not intend to register any

portion of the offering of the securities in the United

States or to conduct a public offering of the securities in

the United States. Copies of this announcement are not being

made and may not be distributed or sent into Australia,

Canada, Japan or the United States. The issue, exercise,

purchase or sale of subscription rights and the subscription

or purchase of shares in the Company are subject to specific

legal or regulatory restrictions in certain jurisdictions.

Neither the Company nor the Managers assumes any

responsibility in the event there is a violation by any

person of such restrictions.

The distribution of this release may in certain jurisdictions

be restricted by law. Persons into whose possession this

release comes should inform themselves about and observe any

such restrictions. Any failure to comply with these

restrictions may constitute a violation of the securities

laws of any such jurisdiction. The Managers are acting for

the Company and no one else in connection with the Subsequent

Offering and will not be responsible to anyone other than the

Company for providing the protections afforded to their

respective clients or for providing advice in relation to the

Subsequent Offering and/or any other matter referred to in

this release.

Forward-looking statements:

This release and any materials distributed in connection with

this release may contain certain forward-looking statements.

By their nature, forward-looking statements involve risk and

uncertainty because they reflect the Company's current

expectations and assumptions as to future events and

circumstances that may not prove accurate. A number of

material factors could cause actual results and developments

to differ materially from those expressed or implied by these

forward-looking statements.