However, administrative processes associated with refinancing from China it has taken longer time than expected, which means that the repayment of the SOLT5 and SOLT2 bonds on their respective due dates, January 25 and February 28, 2023, will not be met. The company will therefore ask the bondholders for an extension of the agreement.

Next step will be that the bondholders will be contacted and presented with the proposal from the company regarding the extension of the affected bond agreements. The proposal means that the agreement with the company is extended with approximately 5 months. The bondholders will be compensated for the extension and interest is paid in the same way as before. Given ongoing processes, it is the company's assessment that repayment of the bonds will be carried out before 8th of July 2023.

Advanced Soltech has a strong underlying business with good cash flow and has always been able to meet its obligations both in terms of repayment of bonds and ongoing interest payments. The company also has full support to implement the necessary measures to secure the company's financial position, from its main owners, Advanced Solar Power Hangzhou Inc. and Soltech Energy Sweden AB (publ).

Max Metelius, CEO of Advanced Soltech, comments:

"Advanced Soltech operates in a very strong market in China and has a very well-functioning and proven business model with good cash flows. This makes us an attractive borrower in China. Administrative processes delayed by, among other things, COVID restrictions mean that we have not been able to complete the refinancing on time, which is unfortunate. However, our assessment is that we will refinance the bonds with local Chinese bank loans, which also will be our future main source of funding”

Information regarding the extension of the of the bond SOLT5 can be found in the attached documents. Information regarding the extension of the bond SOLT2, will be presented in the beginning of January 2023.