Loan amount and availability
The loan, of in total €3,500,000, to the Company is arranged by Group BV, a company closely associated with existing shareholder Sjan Van Ettekoven.
 
Maturity and interest
The loan matures as below:
€1,000,000 on 31st of August, 2022 (“First Maturity Amount”) and
€2,500,000 15th of June, 2025 (“Second Maturity Amount”).
 
No interest shall accrue on the First Maturity Amount. Interest on outstanding Second Maturity Amount shall be ten (10) per cent per annum from availability and shall capitalize on each anniversary of the availability date (each an “Interest Capitalization Date”). Interest on the Second Maturity Amount shall be paid by the Borrower on each Interest Capitalization Date through either cash payment or by a directed set-off issue of new ordinary shares (or a combination thereof), as decided by the lender within forty-five (45) business days before each Interest Capitalization Date (where otherwise payment by way of new shares shall be the default arrangement). The subscription price for Interest Shares shall be equal to 85 per cent of the volume weighted average price for the Borrower’s shares on Nasdaq First North during thirty (30) consecutive trading days immediately preceding the relevant Interest Capitalization Date.
 
The lender shall at all times during the loan term, on one or more occasions, be entitled to request repayment of at minimum 25 per cent of the full loan amount against the receipt of new ordinary shares being issued by the Company, with a subscription price for each such new share shall be €0.075.
 
The loan may be prepaid by the Company, fully or partly, at any time, where interest shall accrue up until prepayment with regard to the Second Maturity Amount, without any added premium or penalty. No arrangement fees or any other fixed fees of any kind shall apply to the loan arrengement.
 
Security arrangements
As security for the First Maturity Amount, an amount corresponding to the First Maturity Amount flowing from the exercise of share warrants issued by the Company in an units issue conducted in 2021 (where the share warrants have an exercise period from 25 July until 8 August 2022 and, at full exercise, proceeds of €3,619,118 will be received by the Company, more information can be found here) shall be separated from the Company's assets and allocated towards repayment of the First Maturity Amount.

As security for all its obligations under the loan agreement, the Company pledges all shares in the subsidiaries CSSA and CSAD held by the Company, as well as any additional shares in CSSA and CSAD to be acquired during the term of the loan agreement up to a value equal to the total loan amount, plus 30 per cent for interest coverage.
 
Loan purpose
The loan is enabling the Company to further accelerate key strategic growth initiatives as well as providing required funding of the Company’s remaining obligations towards external creditors in the compulsory composition agreement of the Company’s reconstruction process that gained legal effect on 29th of June, 2021 (in which a 75 percent write-down of the Company’s legacy subordinated debt was adopted by the Stockholm District Court).
 
CYBER1 Chairman Johan Bolsenbroek commented: “As CYBER1 looks towards its next steps of growth, we are very excited at the prospect of realising the full potential of the company. These important funds will facilitate the opportunity to close off on the reconstruction and start a fresh chapter for additional growth and prosperity. We have been assessing ways in which the company can strategically expand and strengthen our cyber security footprint and with these resources in place, we are looking forward to implementing those plans. Our employees have worked tremendously hard during a challenging macroeconomic climate in 2020 and 2021. The Board of Directors look forward to collaborating with them in unlocking the potential that is present for the company during 2022 and beyond.”