Endomines AB (publ), Press Release, 19 January 2021 at 17:30 CET

On 30 November 2020, the Board of Directors of Endomines AB (publ) ("Endomines" or the "Company") resolved on a rights issue of up to MSEK 281 (the "Rights Issue"). The Rights Issue was approved by the Extraordinary General Meeting in Endomines held on 4 January 2021. Endomines has today been informed that Kyösti Kakkonen, via legal entities controlled by him, in addition to having exercised all subscription rights that were allotted to him in the Rights Issue (via Joensuun Kauppa ja Kone Oy and other legal entities controlled by him) has, together with entities affiliated with him, applied for subscription of 4,000,000 additional shares for a total amount of MSEK 10 without the exercise of subscription rights (the "Additional Subscription"). This means that entities controlled by Kyösti Kakkonen and entities affiliated with him in total have subscribed for 14,913,864 shares corresponding to MSEK 37 (approximately 13% of the rights issue, assuming full subscription) in the Rights Issue, of which MSEK 27 are subscribed for by exercise of subscription rights.

Potential allotment of shares to Kyösti Kakkonen under the Additional Subscription, as well as to any other parties who have subscribed for shares without subscription rights, will be made in accordance with the allotment principles set out in the Rights Issue resolution, meaning that any such shares will only be allotted if and to the extent that not all shares in the Rights Issue are subscribed for by the exercise of subscription rights.

As previously communicated, certain of the Company's current shareholders, including, in addition to Kyösti Kakkonen via legal entities controlled by him and entities affiliated with him, Mariatorp Oy, Wipunen varainhallinta Oy and Ingmar Haga, have previously signed undertakings to subscribe for shares in the Rights Issue based on existing ownership, corresponding to approximately MSEK 58 in total (including Kyösti Kakkonen), representing 21 percent of the Rights Issue. In addition, certain external guarantors, led by Formue Nord A/S, have previously entered into guarantee undertakings for a total amount of MSEK 110, corresponding to 39 percent of the Rights Issue. The guarantee undertakings can only be utilised up to a total maximum subscription in the Rights Issue of MSEK 168.

Contact person:

Marcus Ahlström, CFO, +358 50 544 68 14, marcus.ahlstrom@endomines.com (marcus.ahlstrom@endomines.com)

This information is information that Endomines AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication through the contact person set out above at 17:30 CET on 19 January 2021.
 

About Endomines
Endomines is a mining and exploration company with its primary focus on gold. The Company explores for gold along the Karelian Gold Line in Eastern Finland and develops mining operations in Idaho, USA. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.

The shares trade on Nasdaq Stockholm (ENDO) and Nasdaq Helsinki (ENDOM).

Important notice
The information in this press release does not contain or constitute an offer to acquire, subscribe or otherwise trade in shares, subscription rights or other securities in Endomines. Any invitation to the persons concerned to subscribe for shares in Endomines will only be made through the prospectus which was made public by Endomines on January 7, 2021.

This press release may not be released, published or distributed, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, or the United States or any other jurisdiction where participation would require additional prospectuses, registration or measures besides those required by Swedish law. Nor may this press release be distributed in or into such countries or any other country or jurisdiction in which distribution requires such measures or otherwise would be in conflict with applicable regulations. Any failure to comply with the restrictions described may result in a violation of applicable securities regulations.

The subscription rights, paid subscribed shares and shares in Endomines have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or the securities legislation of any state or other jurisdiction in the United States and no subscription rights, paid subscribed shares or shares may be offered, subscribed for, exercised, pledged, sold, resold, granted, delivered or otherwise transferred, directly or indirectly, in or into the United States except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements under the Securities Act and in compliance with the securities legislation in the relevant state or any other jurisdiction of the United States. There will be no public offering of such securities in the United States.

The securities referred to herein have not been approved or disapproved by the US Securities and Exchange Commission, any state securities commission or other regulatory authority in the United States, nor have any of the foregoing authorities passed upon or endorsed the merits of the rights issue or the accuracy or adequacy of this announcement. Any representation to the contrary is a criminal offence in the United States.

This press release contains certain forward-looking information that reflects Endomines' present view of future events as well as financial and operational development. Words such as "intend", "assess", "expect", "may", "plan", "believe", "estimate" and other expressions entailing indications or predictions of future development or trends, not based on historical facts, constitute forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties as it depends on future events and circumstances. Forward-looking information is not a guarantee of future results or development and actual outcomes may differ materially from the statements set forth in the forward-looking information.

In case of differences between the Swedish, Finnish and English language versions of this press release, the Swedish language version shall prevail.