Axactor SE - Private placement of new shares successfully placed

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN AUSTRALIA, CANADA, THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA, SOUTH AFRICA, NEW ZEALAND, JAPAN OR THE UNITED STATES, OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL

Oslo, Norway, 9 December 2020

Reference is made to the stock exchange announcement by Axactor SE (OSE: AXA) ("Axactor" or the "Company") on 9 December 2020 regarding the contemplated private placement of 40 million new shares (the "Offer Shares"), representing 21.6% of the outstanding share capital of the Company (the "Private Placement"). The Company hereby announces that it has conditionally allocated 40 million new shares in the Private Placement at a subscription price of NOK 8.00 per share, raising gross proceeds of NOK 320 million. The Private Placement was significantly oversubscribed. ABG Sundal Collier, DNB Markets, a part of DNB Bank ASA, and Nordea Bank Abp, filial i Norge are acting as joint bookrunners (the "Joint Bookrunners") in connection with the Private Placement.

The net proceeds from the Private Placement will be used to strengthen the Company's balance sheet, fund acquisition of portfolios and for general corporate purposes. For more information regarding the use of proceeds please see the company presentation attached to the stock exchange announcement by the Company on 9 December 2020.

Geveran Trading Co Ltd. ("Geveran"), which is the Company's largest shareholder, has conditionally been allocated 12.78 million Offer Shares in the Private Placement, corresponding to its pro rata 31.95% share of the Private Placement. Following completion of the Private Placement, Geveran will own 72,017,772 shares in Axactor. As described in the stock exchange announcement on 9 December 2020 related to the refinancing of Axactor, Geveran and its affiliates will, as a result of Axactor’s acquisition of their shares in Axactor Invest 1 S.á r.l ("Axactor Invest") with settlement in 50,000,000 new shares in Axactor (the "Consideration Shares"), increase their ownership in Axactor to 122,017,772 shares, representing 44.31% of the outstanding share capital and voting rights in the Company after the Private Placement and the issuance of the Consideration Shares.

The following members of the Board of Directors and the group executive management of Axactor have conditionally been allocated shares in the Private Placement (the ownership percentage included below is calculated on the basis of the outstanding shares after the Private Placement and the issuance of the Consideration Shares):

• Glen Rødland, Chairman – allocated 1,000,000 shares and will after the Private Placement own 1,000,000 shares, representing 0,44% of the outstanding shares

• Terje Mjøs, Board Member – allocated 100,000 shares and will after the Private Placement own 200,000 shares, representing 0,09% of the outstanding shares

• Johnny Tsolis, CEO – allocated 130,000 shares and will after the Private Placement together with affiliated parties own 1,700,000 shares, representing 0,75% of the outstanding shares

• Teemu Alaviitala, Chief Financial Officer – allocated 37,500 shares and will after the Private Placement own 38,900 shares, representing 0,02% of the outstanding shares

• Robin Knowles, Chief Investment Officer – allocated 25,000 shares and will after the Private Placement own 303,180 shares, representing 0,13% of the outstanding shares

• Arnt Andre Dullum, Chief Operating Officer – allocated 27,500 shares and will after the Private Placement own 98,174 shares, representing 0,04% of the outstanding shares

• Vibeke Ly – Chief of Staff – allocated 133,750 shares and will after the Private Placement own 133,750 shares, representing 0,06% of the outstanding shares

• Kyrre Svae, Chief of Strategy and IR – allocated 33,500 shares and will after the Private Placement own 112,500 shares, representing 0,05% of the outstanding shares

Notification of conditional allotment of the Offer Shares including settlement instructions will be sent to the applicants through a notification from the Joint Bookrunners on 10 December 2020.

The Offer Shares allocated in the Private Placement are expected to be settled on or about 7 January 2021, through a delivery versus payment transaction by delivery of existing and unencumbered shares in the Company, that are already listed on the Oslo Stock Exchange, pursuant to a share lending agreement between the Company, Geveran, and ABG Sundal Collier ASA (on behalf of the Joint Bookrunners). Such shares are expected to be tradable by the investors in the Private Placement from and including 6 January 2021 (subject to timely payment of the shares by the investors). The Joint Bookrunners will settle the share loan with a corresponding number of new shares in the Company to be issued on a separate ISIN following approval of the issue of such new shares by an extraordinary general meeting in the Company to be held on or about 5 January 2021 (the "EGM"). The new shares will not be tradable on the Oslo Stock Exchange until a prospectus (the "Prospectus") has been approved by the Financial Supervisory Authority of Norway and published.

Completion of the Private Placement is conditional upon (i) the relevant bodies of the Company passing the corporate resolutions required to consummate the Private Placement and allocate the Offer Shares, including approval by the EGM, (ii) approval by the EGM of the issuance of the Consideration Shares to Geveran and (iii) approval of the early redemption of the AXA01 bond at a bondholder meeting and a minimum of EUR 160 million of subscriptions in the new bond issue as announced in the stock exchange announcement issued by the Company on 9 December 2020.

Subject to approval by the EGM, the Company plans to carry out a subsequent offering of up to 26.7 million new shares in the Company (the "Subsequent Offering") directed towards shareholders in the Company as of 9 December 2020 (as registered in the VPS on 11 December 2020) who were not allocated shares in the Private Placement and who are not resident in a jurisdiction where such offering would be unlawful or, for jurisdictions other than Norway, would require any prospectus, filing, registration or similar action. Such shareholders will be granted transferable preferential rights to subscribe for, and, upon subscription, be allocated new shares. The subscription price in such Subsequent Offering will be the same as the subscription price in the Private Placement, i.e. NOK 8.00 per share. Over-subscription and subscription without subscription rights will be permitted in the Subsequent Offering. The shares issued in the Subsequent Offering will not be comprised by the mandatory offer described in the stock exchange announcement issued by the Company on 9 December 2020, as such mandatory offer will be completed prior to the issuance of the offer shares in the Subsequent Offering. Existing shareholders being allocated shares in the Private Placement will undertake to vote in favor of the Subsequent Offering at the EGM. The subscription period in the Subsequent Offering is expected to commence shortly after publication of the Prospectus.

As further described in the stock exchange announcement of 9 December 2020 regarding the contemplated Private Placement, the Board of Directors has considered the Private Placement in light of the equal treatment obligations under the Norwegian Securities Trading Act and Oslo Børs' Circular no. 2/2014, and is of the opinion that the proposed Private Placement is in compliance with these requirements. The Board of Directors is of the view that the refinancing, which is described in the stock exchange announcement issued by the Company on 9 December 2020, will be in the common interest of the Company and its shareholders, and the Private Placement is a pre-requisite for such refinancing. The private placement structure is necessary in order to raise capital in a timely and efficient manner. There will not be sufficient time to implement a rights issue prior to the contemplated timing of the closing of the refinancing. Furthermore, the Board of Directors has proposed to implement the Subsequent Offering to preserve the interests of shareholders not participating in the Private Placement.

For additional information, please contact:

Johnny Tsolis, CEO, Axactor
Mobile phone: +47 913 35 461
Email: johnny.tsolis@axactor.com

Important Notices

This announcement is not and does not form a part of any offer to sell, or a solicitation of an offer to purchase, any securities of the Company. The distribution of this announcement and other information may be restricted by law in certain jurisdictions. Copies of this announcement are not being made and may not be distributed or sent into any jurisdiction in which such distribution would be unlawful or would require registration or other measures. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.

The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and accordingly may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and in accordance with applicable U.S. state securities laws. The Company does not intend to register any part of the offering or their securities in the United States or to conduct a public offering of securities in the United States. Any sale in the United States of the securities mentioned in this announcement will be made solely to "qualified institutional buyers" as defined in Rule 144A under the Securities Act.

In any member state of the EEA ("EEA Member State"), this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation, i.e., only to investors who can receive the offer without an approved prospectus in such EEA Member State. The expression "Prospectus Regulation" means Regulation 2017/1129 as amended together with any applicable implementing measures in any Member State.

This communication is only being distributed to and is only directed at persons in the United Kingdom that are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") or (ii) high net worth entities, and other persons to whom this announcement may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only for relevant persons and will be engaged in only with relevant persons. Persons distributing this communication must satisfy themselves that it is lawful to do so.

Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "strategy", "intends", "estimate", "will", "may", "continue", "should" and similar expressions. The forward-looking statements in this announcement are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control.

Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in investment levels and need for the Company’s services, changes in the general economic, political and market conditions in the markets in which the Company operate, the Company’s ability to attract, retain and motivate qualified personnel, changes in the Company’s ability to engage in commercially acceptable acquisitions and strategic investments, and changes in laws and regulation and the potential impact of legal proceedings and actions. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not provide any guarantees that the assumptions underlying the forward-looking statements in this announcement are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this announcement or any obligation to update or revise the statements in this announcement to reflect subsequent events. You should not place undue reliance on the forward-looking statements in this announcement.

The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.

Neither of the Joint Bookrunners nor any of their respective affiliates makes any representation as to the accuracy or completeness of this announcement and none of them accepts any responsibility for the contents of this announcement or any matters referred to herein.

This announcement is for information purposes only and is not to be relied upon in substitution for the exercise of independent judgment. It is not intended as investment advice and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy any securities or a recommendation to buy or sell any securities in the Company. Neither the Joint Bookrunners nor any of their respective affiliates accepts any liability arising from the use of this announcement.

This information is subject of the disclosure requirements of section 5-12 of the Norwegian Securities Trading Act.