Background:

Nustay recently decided on a significant change to its strategic roadmap, which set the company's focus on becoming EBITDA profitable much sooner than previously planned. It is now the Company's goal to reach profitability by the end of 2020 while becoming cash flow positive by Q3 2020. According to the Board of Directors, these targets indicate a clear trendline in the Company's business towards stable profitability.

This refocus has already seen important changes to management decision-making and operations, from supply to the Company's global marketing strategy. In light of these changes, Nustay has seen a quickened pace towards the goal of profitability, both through a significant increase in revenue and a positive return on its marketing investment:

Since February 10[th] 2020 Nustay has had a positive return on its daily marketing investment, peaking at 75% positive return on a single day when comparing marketing costs vs commission earned on bookings.

As a result of this, management considers that the Company is now trending towards the point of breaking even on these daily measures. Once the marketing activities have stabilized further, Nustay expects to be able to scale its investment in marketing to levels which have so far been out of reach for the Company, which in theory should result in a substantial increase in both handled revenue and net revenue assuming certain assumptions are met.

Updates of the business and the way forward:

Nustay has made diversification of suppliers and payment methods one of its main priorities. In terms of diversification, Nustay has moved away from being reliant on a small number of big hotel suppliers to drive the majority of revenue in its marketing, and instead teamed up with a larger number of market players. Furthermore, as a result of demand from the market, Nustay has added on a wide selection of country-specific online payment services. These include (but are not limited to) Multibanco in Portugal, Giropay in Germany, WeChat Pay in Asia and also PayPal for the global market.

Between December 2019 and February 2020 Nustay rolled out its brand new international website. The new website consists of a data-driven and user-focused interface, as well as several new profit-making features, including flight-tickets, car rental, and airport transfer services. These additional services are offered through premium partnerships and are expected to add to the Company's top-line revenue with limited risk. Additionally, the launch opens several new and large geographical markets for the Company, such as Japan, Brazil, Mexico, Colombia, and Hong Kong. Meaning that Nustay is now present in 26 markets with a local website.

The launch of the new website will be followed by mobile apps on iOS and Android - expected early 2020. Approximately 75% of all bookings on Nustay are today carried out through mobile devices on their respective internet browsers. This is in sharp contrast to the beginning of 2019 when most bookings were done on a desktop. With the new mobile apps, the Company will be able to extend its marketing strategy into in-app marketing such as push notifications and easier retain customers using their mobile devices to book.

Since the launch of the new website, Nustay has seen noticeable improvements on important KPIs such as site bounce rate, load times and conversion rates. The Company expects further positive uplift in KPIs as a result of the release of the mobile app, the launch of a loyalty program as well as the introduction of additional hotels and holiday homes on its platform. In line with these results, the Board of Directors' outlook assessed that Nustay carries the capacity for a significant increase in revenue starting 2020.

It is in order to ensure Nustay consolidates the above successes and continues on the current trendline towards long-term stability and profitability, that the Board of Directors have decided to conduct this initial fully pre-subscribed and underwriting committed rights issue of shares and warrants of approximately DKK 27.3 million (before issue costs and including conversion of bridge loans to Units). Specifically, the rights issue will ensure further growth in revenue and better growth margins for the Company through additional and continuous marketing efforts. It will also secure the financing for platform, organizational, and supply chain development in accordance with the strategic objectives. Finally, the proceeds from the rights issue will be used towards debt repayment.

Company targets going forward:

2020

• TripAdvisor global launch
• NustayPRO launch (dedicated B2B distribution business

unit)
Q2

• Monthly handled revenue above DKK 40 million

• Launch of an app for iOS, Android
• Launch of the loyalty program
• Kayak global launch
• Trivago global launch
• Positive marketing contribution

• Cash-flow positive

• NET profitable (EBITDA profitable)

• Monthly handled revenue above DKK 100 million

Comment from Nustay CEO Mathias Lundoe Nielsen:

"I am pleased that the time has come for us to initiate this fully pre-subscribed and underwriting committed rights issue, which we believe will give us the necessary resources to bring Nustay to the next level. As the last few weeks in particular have shown, we are in a clear positive trend. Whether we look at our new partnership agreements, our fresh and highly functional new platform with its new profit-making product offering, the new geographical markets we are now operating in, our increasing revenue, or, most importantly, our positive marketing contribution across the majority of days over the last month, we can see Nustay situated in a very exciting position. We are now carrying out a rights issue of shares and warrants of totally DKK 50.1 million and are of course grateful that the company's largest owners show continued confidence in our plan going forward. Through the funds received we aim to reach profitability by the end of 2020 while becoming cash flow positive already in Q3 2020."

The fully pre-subscribed and underwriting committed rights issue of Units:

The Board of Directors has decided to implement a rights issue of Units. The rights issue of Units shall amount to approximately DKK 27.3 million. In addition, through the rights issue of Units, warrants will be issued, which may add a total of approximately DKK 22.8 million. The total issue from the rights issue and the warrants thus amount to approximately DKK 50.1 million (before total issue costs of approximately DKK 5.1 million and conversion of debt of in total approximately DKK 5.8 million). The public will also be given the possibility to subscribe in the rights issue.

Nustay has received pre-subscription commitments of approximately DKK 13.3 million from its major shareholders, board members as well as external investors (of which approximately DKK 9.3 million is from its major shareholders and board members). The company has also received underwriting commitments of approximately DKK 14 million from external investors. The pre-subscription commitments and underwriting commitments thus amount to approximately DKK 27.3 million, which corresponds to a total of 100 percent of the rights issue of Units.

The rights issue is to be carried out with pre-emptive right for existing shareholders, the public is also given the opportunity to subscribe for shares in the rights issue. The overall objective of the capitalization is to finance further growth, rebuild the cash-buffer, and repay the Company's outstanding debt. Short-term bridge loans provided by pre-subscribers will be pre-paid to the Company. These loans amounting to a total of DKK 4.8 million will be converted to shares and warrants in the issue. DKK 1 million of the bridge financing acquired in 2019 will also be converted to shares and warrants in the issue. Bridge financing amounting to DKK 5.8 million will thereby be converted to shares and warrants and are therefore not included in the specification of capital use from net proceeds. Additionally, a total of DKK 14 million of the net proceeds from the total issue (of which DKK 7.6 million in connection to the initial issue of Units and DKK 6.4 million in connection to the exercise of warrants) will be used to repay outstanding short-term debt acquired as bridge financing in 2019. Debt amounting to DKK 19.8 million will thereby be repaid or converted into share capital in connection to the rights issue.

Summary of the offering:

[][][][][][][][][][][][][][][][][]
Subscription period: March 10[th], 2020 - March 24[th], 2020.
Subscription price: DKK 4.5 per Unit (corresponding to DKK 0.90
per share). The warrants are issued free of
payment.
Issue volume: The offer comprises a maximum of 30,367,775
shares and a maximum of 18,220,665 warrants,
corresponding to a capital increase of
approximately DKK 27.3 million and DKK 22.8
million, respectively, before issuance costs
and including conversion of bridge loans to
Units. If the issue is fully subscribed and
all associated warrants are exercised, the
total offer totals approximately DKK 50.1
million before issuance costs and including
conversion of bridge loans to Units.
Record date: The record date for obtaining pre-emptive
subscription rights is March 9[th], 2020 at
17:59 CET. The last day for trading in the
share including pre-emptive right to receive
pre-emptive subscription rights is March
5[th], 2020. The first day of trading in the
share excluding pre-emptive right to receive
pre-emptive subscription rights is March
6[th], 2020.
Pre-emptive right: Those who are registered in VP Securities A/S
as shareholders in Nustay on the record date
March 9[th], 2020 at 17:59 have pre-emptive
right to subscribe for shares and warrants in
the rights issue. For each existing share,
one (1) pre-emptive subscription right is
obtained. Three (3) pre-emptive subscription
rights entitle to subscription of five (5)
new shares and three (3) warrants. If a
holder of three (3) pre-emptive subscription
rights have exercised such right and
subscribed for new shares and warrants during
the subscription period, the investor's
subscription will be settled by way of
delivery of one (1) Unit to the investor's
account with VP Securities A/S under the
temporary ISIN DK0061273711. One Unit
entitles the holder to five (5) shares and
three (3) warrants. The pre-emptive
subscription rights have the ISIN code
DK0061275096. New shares and warrants which
have not been subscribed for by the existing
shareholders before the expiry of the
subscription period (the "Remaining Shares")
may, without compensation to the holders of
unexercised pre-emptive subscription rights,
be subscribed for by existing or new
shareholders who have made binding
undertakings to subscribe for Remaining
Shares according to the subscription form
available on Sedermera Fondkommission's web
page (www.sedermera.se) and the web page of
Nustay (www.nustay.com), before the expiry of
the subscription period. In case of
oversubscription of Remaining Shares based on
binding undertakings, such Remaining Shares
will be allocated according to an allocation
principal determined by the board of
directors of the Company, based on the
received binding undertakings; provided,
however, that the Remaining Shares will be
allocated irrespective of whether such
undertakings were made by existing or new
shareholders.
The number of shares before the 18,220,665 shares.
rights issue:
Pre-subscription commitments The Company has received pre-subscription
and underwriting commitments: commitments totaling approximately DKK 13.3
million and Underwriting commitments totaling
approximately DKK 14 million, corresponding
to a total of 100 percent of the rights issue
volume. Approximately 49 percent of the
rights issue is covered by pre-subscription
commitments and approximately 51 percent of
the rights issue is covered by underwriting
commitments. This means that approximately 51
percent of the issue is available for
subscription by shareholders and other
investors.
Trading in pre-emptive Trading in pre-emptive subscription rights
subscription rights: will take place on Spotlight Stock Market
from March 6[th], 2020 and continue until
March 20[th], 2020.
Allocation and trading in Allocation and trading in Units will take
Units: place on Spotlight Stock Market from March
26[th], 2020 and continue until March 30[th],
2020 after which each paid Unit will be
converted automatically into five (5) new
shares and three (3) warrants which will be
admitted for trading on Spotlight Stock
Market.
Settlement day for final trades Settlement day at VP Securities for final
in Units: trades in Units is expected to April 1[st],
2020.
Settlement day for conversion The new shares and warrants are expected to
to ordinary shares and be registered with the Danish Business
warrants: Authority on April 2[nd], 2020. Settlement
day at VP Securities for conversion to
ordinary shares and allocation of warrants is
expected to take place during April 1[st],
2020 and April 2[nd], 2020.
Trading in new shares and Trading in the new shares and warrants is
warrants: expected to commence on April 3[rd], 2020.
Exercise period (warrants): August 27[th, ]2020 - September 10[th], 2020.
Exercise price (warrants): The holding of one (1) warrant entitles to
the subscription of one (1) new share in
Nustay at an exercise price of DKK 1.25 per
share.
Dilution: Shareholders who choose not to exercise their
pre-emptive right to subscribe for shares and
warrants will receive a maximum dilution of
approximately 73 percent as a result of the
rights issue of shares and warrants
(calculated as the number of new shares as a
result of the rights issue (including the
exercise period of warrants) divided by the
total number of shares in the Company after
the event that the rights issue is fully
subscribed and all issued warrants are
exercised).

Estimated issue costs:

Estimated issue costs attributable to the rights issue of shares and warrants (including costs attributable to guarantee compensation) amount to approximately DKK 3.6 million, of which approximately DKK 1.4 million refers to guarantee compensation. Furthermore, estimated costs attributable to the exercise of warrants amount to approximately DKK 1.5 million. The cost attributable to the issue amounts to approximately 10 percent of the total issue volume.

Publication of prospectus:

In connection with the issue described in this press release, Nustay is publishing a prospectus which is available both at Nustay's and Spotlight Stock Markets' respective websites (www.nustay.com and www.spotlightstockmarket.com). For full terms and conditions regarding Nustay's issue, please refer to the above-mentioned prospectus published in connection with the transaction.

Updated loan agreements:

Since the autumn of 2019 (see separate press releases previously published on September 6[th] and November 21[st], 2019), Nustay has had a combined debt to creditors of DKK 15 million. This will now be partly repaid - the outstanding part has been extended and re-negotiated. In the planned rights issue, approximately DKK 7,6 million will be repaid. This leaves an outstanding debt of approximately DKK 6.4 million, which has been extended and shall be re-paid to the creditors no later than September 30[th], 2020. In connection with the extension, the interest has been re-negotiated to 1.5% per month. The remaining DKK 1 million will be converted to shares and warrants in the rights issue. Furthermore, in case the company does not re-pay the loan by September 30[th], 2020, the creditors can request that the loan is converted into shares (subject to approval by an Extraordinary General Meeting). In case of conversion, the conversion price shall be established based on a 10-day volume weighted average price of the trading price of the creditors' shares on Spotlight Stock Market, based on 10 days prior to the date of conversion, with a 10 % percent discount. However, this price may not be below 0.90 DKK per share. It shall also be noted that one of the creditors, Formue Nord Markedsneutral A/S, has transferred its share of the loan to Formue Nord Fokus A/S.

Technical information regarding the financial instruments:

Shares:

ISIN code: DK0061132305

FISN: Nustay AS/-

CFI: ESVUFN

Pre-emptive subscription rights:

ISIN code: DK0061275096

FISN: Nustay AS/T-ret

CFI: RSSXXB

Interim share nr. 1/"Units":

ISIN code: DK0061273711

FISN: Nustay AS/Midl Unit

CFI: ESVUFN

Interim share nr. 2:

ISIN code: DK0061273984

FISN: Nustay AS/Midl

CFI: ESVUFN

Warrants:

ISIN code: DK0061274016

FISN: Nustay AS/Warrant

CFI: RWSTCB

Financial advisor and issuing agent:

Sedermera Fondkommission acts as financial advisor and issuing agent to Nustay in connection with the rights issue of Units. VP Securities also acts as issuing agent to Nustay in connection to the rights issue of Units.

For more information on the rights issue of Units, please contact:

Sedermera Fondkommission

Phone: +46 40 - 615 14 10

Email: info@sedermera.se

www.sedermera.se

For further information about Nustay, please contact:

Investor Relations, Nustay A/S

Email: investor@nustay.com

Website: www.nustay.com

This information is information that Nustay A/S is obliged to publish following the EU Market Abuse Regulation. The information was provided by the contact person above for publication on March 4[th], 2020.

About Nustay:

Nustay is a Danish online hotel booking company established in 2014. The company has developed an innovative booking platform offering the lowest possible hotel prices while also enhancing customer's booking experience. Nustay has set out an ambitious vision to become the global leader within the online hotel booking industry and is confident its large hotel room inventory, novel pricing strategy, and transparent booking process, will achieve that goal.