Anoto Group AB (publ) (the “Company” or “Anoto”) today announces that the Company has entered into a convertible investment agreement with Mark Stolkin and DDM Debt AB, two larger shareholders in Anoto. The investors will together invest USD 1,500,000 in convertible debt. Upon conversion, the Company will deliver shares through one or several set-off share issues. The funds received by the Company through the investments shall be used for general corporate purposes for the execution of the Company’s business plan.

The maturity date for the convertible loans is 28 December 2024. Any outstanding loan amount carries interest with 8.00 per cent per annum. Interest shall be payable on the earlier of (i) the maturity date for the loans and (ii) the date the loan amount is converted into ordinary shares in Anoto.

Upon request by an investor, the outstanding loan amount, in full or in part, plus accrued interest, shall be converted into newly issued ordinary shares of the Company at a conversion price of SEK 0.42, which corresponds to the current quota value of the shares, and at a fixed exchange rate of 10.51 SEK/USD. However, in the event of a Qualified Financing Round, the outstanding loan amounts shall automatically be converted into newly issued ordinary shares of the Company at a conversion price corresponding to 75 per cent of the subscription price in the Qualified Financing Round and at a fixed exchange rate of 10.51 SEK/USD. A “Qualified Financing Round” means the occurrence of a rights issue in the Company made primarily for equity financing purposes against cash consideration or by way of set-off against outstanding debts owed by the Company, raising at least an aggregate amount of USD 2.3 million (or the equivalent in SEK), including participation from the Company’s existing shareholders but excluding advisory and arrangement fees, transaction costs and expenses.

Anoto will provide security for the loans under the convertible investment agreement and will consist of a first ranking floating charge in Anoto AB in the amount of SEK 20 million and a share pledge over Anoto AB’s shares in KAIT Knowledge AI Holdings Pte. Ltd.

Anoto has reappointed Hans Haywood as Group CFO and Pedro Pinto as Group CTO. Hans Haywood will also act as CEO of Anoto AB, a subsidiary of Anoto Group AB, and its subsidiaries.

For further information, please contact:

Kevin Adeson, Chairman of the board of Anoto Group AB (publ)

For more information about Anoto, please visit www.anoto.com or email ir@anoto.com

Anoto Group AB (publ), Reg.No. 556532-3929, Flaggan 1165, 116 74 Stockholm

This information constitutes inside information as Anoto Group AB (publ) is obliged to disclose under the EU Market Abuse Regulation 596/2014. The information was provided by the contact person below for publication on 27 June 2024 at 19:45 CEST.

About Anoto Group

Anoto is a publicly held Swedish technology company known globally for innovation in the area of information-rich patterns and the optical recognition of those patterns. It is a lead-er in digital writing and drawing solutions, having historically used its proprietary technology to develop smartpens and related software. These smartpens enrich the daily lives of millions of people around the world. Anoto currently has three main business lines: Livescribe retail, Enterprise Forms and OEM. Anoto also holds a stake in Knowledge AI, a leading AI based education solution company. Anoto is traded on the Small Cap list of Nasdaq Stockholm under ANOT.