Humble Group AB (publ) (”Humble Group” or the ”Company”) has successfully carried out a directed new issue of 33,125,000 million shares, at a subscription price of SEK 16 per share, entailing issue proceeds of approximately SEK 530 million (the “Share Issue”). The subscription price was determined through an accelerated bookbuilding procedure conducted by Carnegie Investment Bank AB (publ) (“Carnegie”) as Sole Bookrunner. The Share Issue was oversubscribed by a large number of new and existing Swedish and international institutional investors, including Ernström Kapital AB (“Ernstörm”) who subscribed for shares in the Share Issue corresponding to SEK 200 million. As a result of Ernström’s investment in the Company, Ernström has also expressed a desire to nominate a person to Humble Group’s board of directors (which would be Ola Cronholm, Investment Manager of Ernström). The Company’s nomination committee are positive to the proposal and intends to propose Ola Cronholm to be elected as a member of the board in the Company.

The Company has completed the accelerated bookbuilding procedure announced by the Company earlier today. The board of directors of Humble Group has resolved to carry out a directed new issue of 33,125,000 shares, at a subscription price of SEK 16 per share, entailing issue proceeds of approximately SEK 530 million before transaction costs. The resolution was passed by the board of directors based on the authorization granted by the annual general meeting, held on 6 May 2021.

The subscription price was determined through an accelerated bookbuilding procedure, and it is therefore the board of directors’ assessment that the subscription price accurately reflects current market conditions and demand. The investors in the Share Issue comprised a large number of new and existing institutional investors, including Ernström who subscribed for shares in the Share Issue corresponding to SEK 200 million. As a result of Ernström’s investment in the Company, Ernström has also expressed a desire to nominate a person to Humble Group’s board of directors (which would be Ola Cronholm, Investment Manager of Ernström). The Company’s nomination committee are positive to the proposal and intends to propose Ola Cronholm to be elected as a member of the board in the Company.

“We are very pleased and thankful for the interest we have received from both Swedish and international investors and to be able to welcome Ernström as an active shareholder in Humble Group. The fact that the Company has the ability to quickly carry out the Share Issue under the existing market conditions is a sign of strength for the Company and through the New Issue we are well prepared for our continued growth and acquisition journey.” says Simon Petrén, CEO of Humble Group

The net proceeds from the Share Issue are intended to be used to finance settlement of previously announced acquisitions as well as to support growth initiatives, mainly through further acquisitions, while the Company maintains an appropriate capital structure, financial flexibility and risk level. A prerequisite to be able to complete such acquisitions in accordance with agreed time tables is that sufficient funds are made available to the Company to secure the financing of the purchase prices with an acceptable time margin. The Company has also considered the possibility of raising capital through a rights issue, but has concluded that such an alternative would entail that the Company will not have with funds in time to be able to pay the purchase prices at settlement. The above are the reasons for resolving on a share issue with deviation from the shareholders’ pre-emptive rights, and considering the above, it is the board of directors’ overall assessment that the reasons clearly and with sufficient strength outweighs the reasons that justifies the main principle that share issues shall be carried out with application of the shareholders’ pre-emptive rights, and that a share issue with deviation from the shareholders’ pre-emptive rights therefore lies in the interest of the Company and all shareholders.

The Company has, subject to customary exemptions and the completion of the Share Issue, undertaken in favor of Carnegie not to issue additional shares for a period of 180 calendar days from the settlement date of the Share Issue.

Through the Share Issue, the number of shares and votes in Humble Group will increase by 33,125,000, from 251,856,656 to 284,981,656, and the Company’s share capital will increase by SEK 7,287,500, from SEK 55,408,464.32 to SEK 62,695,964.32. The Share Issue entails in a dilution of approximately 11.6 per cent of the number of shares and votes in Humble Group, calculated after the Share Issue.

Advisers
Carnegie acts as Sole Bookrunner in connection with the Share Issue. Gernandt & Danielsson Advokatbyrå KB acts as legal adviser to the Company and White & Case Advokataktiebolag acts as legal adviser to the Sole Bookrunner in connection with the Share Issue.

Link to Humble Group’s latest investor presentation:
https://humblegroup.se/wp-content/uploads/2022/04/Humble-Group-Investor-Presentation-2022-04-28.pdf

For further information, please contact:   
Simon Petrén, CEO, Humble Group AB       
Tel: +46 70 999 94 55
E-mail: simon.petren@humblegroup.se

This information is such that Humble Group is required to publish in accordance with EU Market Abuse Regulation 596/2014. The information in this press release has been published by the above contact person, at the time specified by Humble Group’s news distributor Cision at the time of publication of this press release.

About Humble Group          
Humble Group is a Swedish food-tech and FMCG-group, supplying the next generation of products that are good for people and the planet. Humble targets the segments of foodtech, eco, sustainability and vegan to drive high organic growth, acquisitions and utilize synergies in the different operation entities: Brands, Distribution, Manufacturing and Ingredients and R&D. Humble’s technology solutions, refined through scientific research and extensive market experience, facilitate new formulations and recipes that improve the taste and texture of the next generation of sugar-reduced, sustainable and vegan products. For more information visit www.humblegroup.se

Humble is listed on Nasdaq Stockholm, First North Growth Market, under the ticker HUMBLE. FNCA Sweden AB is Humble Group’s certified adviser. Tel: +46 8 528 00 399 E-mail: info@fnca.se

Important information
The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in Humble Group in any jurisdiction, neither from Humble Group nor from someone else.

This announcement does not identify or suggest, or purport to identify or suggest, the risks (direct or indirect) that may be associated with an investment in the new shares. Any investment decision in connection with the New Issue must be made on the basis of all publicly available information relating to the Company and the Company’s shares. Such information has not been independently verified by Carnegie or SEB. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. Carnegie and SEB are acting for the Company in connection with the New Issue and no one else and will not be responsible to anyone other than the Company for providing the protections afforded to its clients nor for giving advice in relation to the New Issue or any other matter referred to herein.

This announcement does not constitute a recommendation concerning any investor’s option with respect to the New Issue. Each investor or prospective investor should conduct his, her or its own investigation, analysis and evaluation of the business and data described in this announcement and publicly available information. The price and value of securities can go down as well as up. Past performance is not a guide to future performance.

This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, within or into Australia, Hong Kong, Japan, Canada, New Zealand, Singapore, South Africa, the United States or in any other jurisdiction where such announcement, publication or distribution of the information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.

This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. Humble Group has not authorized any offer to the public of shares or rights in any member state of the EEA and no prospectus has been or will be prepared in connection with the New Issue. In any EEA Member State, this communication is only addressed to and is only directed to qualified investors in that Member State within the meaning of the Prospectus Regulation.

In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed to, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, “qualified investors” who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.

Forward-looking statements
This press release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. 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 guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake 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 press release, unless it is not required by law or Nasdaq First North Growth Market’s rule book for issuers.

Information to distributors
Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended (“MiFID II”); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the “MiFID II Product Governance Requirements”), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any “manufacturer” (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the shares in Humble Group have been subject to a product approval process, which has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the “Target Market Assessment”). Notwithstanding the Target Market Assessment, Distributors should note that: the price of the shares in Humble Group may decline and investors could lose all or part of their investment; the shares in Humble Group offer no guaranteed income and no capital protection; and an investment in the shares in Humble Group is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the New Issue. Furthermore, it is noted that, notwithstanding the Target Market Assessment, Carnegie and SEB will only procure investors who meet the criteria of professional clients and eligible counterparties.

For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares in Humble Group.

Each distributor is responsible for undertaking its own target market assessment in respect of the shares in Humble Group and determining appropriate distribution channels.

This is a translation of the Swedish version of the press release. In case of discrepancies, the Swedish wording shall prevail.