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• Mobintel (Tekmovil's principals) has signed a term sheet for a seven-year funding arrangement with an Emeriti Investment Bank for a total of USD 50 million proposed investment, consisting of:
• Up to USD 38 million revolving debt and USD 12 million equity for 40 per cent of the new company. As the company keeps on achieving the targets as set out in the business plan, the equity stake will decrease to 20 per cent.
• The funds will be used for business expansion, in the Latin American wireless telecom market.

Raytelligence (Nordic SME: RAYTEL) is announcing that the planned transaction between Innowearable and Mobintel (Tekmovil's principals) has signed a term sheet for a seven-year funding arrangement with an Emeriti Investment Bank for a total of USD 50 million proposed investment, whereof up to USD 38 million revolving debt and USD 12 million equity for 40 per cent of the new company. Interest shall be paid on the loans at 8 per cent per annum. Furthermore, a set-up fee of 2.5 per cent is payable. As the company keeps on achieving the targets as set out in the business plan, the equity stake shall decrease to 20 per cent.

Background

On June 17, 2024, Innowearable AB (publ) published a declaration of intent regarding an acquisition of the assets in Tekmovil LLC. The letter of intent was made valid until August 30, 2024, after which it expires if no agreement has been concluded between the parties. However, a final agreement on the now proposed financing is intended to take place no later than October 22, 2024. This assumes that the parties to said letter of intent negotiate an extension and possibly additional conditions for the transaction.

Mobintel is an innovative mobile technology distribution and services company with the best mobile technologies on the market. Mobintel leverages industry-leading expertise to give manufacturers, network operators and key channel partners a competitive edge by providing high-value services. Mobintel's operations span 14 countries in three regions. Mobintel's value proposition is to disrupt the traditional distributor model with technology-enabled services that seamlessly maximize brand and customer performance while providing innovative, customer-driven, technology-enabled services that translate into increased sales, customer satisfaction and value for customers.

This information is such that Raytelligence AB (publ) is obliged to make it public under the EU Market Abuse Regulation (596/2014). The information was submitted, through the care of the below contact persons, for publication on 1 August 2024 at 08:15 CET.

For more information contact:

Ben Hedenberg                                               Erik Forsell

ben@bigben.se                                               erik@brcf.se

+46 (0)8-551 160 90                                        +46 (0)73-417 50 90

Briefly about Raytelligence and Innowearable

Raytelligence is an investment firm whose key strategy is to identify and complete combination deals with businesses in any of the following sectors: Biotechnology & Pharmaceuticals, Automotive, Financial Services, Communications Technology, Food Technology, Cutting Edge Technologies and Media sectors in Europe, the Americas and Asia that can benefit from the extensive experience of our management team and operational capability, although the company reserves the right to pursue an acquisition opportunity in any company or industry.

Innowearable AB (publ) is a Swedish subsidiary of Raytelligence AB (publ). Raytelligence is listed on NGM Nordic SME under the short name RAYTEL. The company's mentor is Black River Corporate Finance AB, +46 (0)73-417 50 90.