FRISQ Holding AB intends to decide on a new share issue to secure the company’s financial position

As the board of FRISQ Holding AB (hereinafter "Frisq" or "the Company") did not receive a signed and binding share purchase agreement from Tempest SPV Ltd on Monday, the board intends to decide on a new share issue with the authorization given at the Extraordinary General Meeting. The purpose of the new share issue is to secure the Company's financial position.
 
The authorization enables the issue of up to approximately 31.9 million shares. The Board intends to carry out a directed issue firstly and then a rights issue at the same issue price. The total number of shares issued in these issues shall be within the authorization. The shares issued in the directed issue will not be eligible for participation in the rights issue.
 
With these new issues, the Company is expected to have sufficient financial resources for the rest of 2022. The Board has begun work together with the management team to adjust costs and focus the commercial work with objective that the Company will be cash flow positive by the end of 2022. This means that current revenues in the Company towards the end of 2022 shall on average exceed the estimated monthly costs of an average of approximately SEK 5 million. Significantly higher revenues are expected by the Company in the long term when the contracts that are intended to be entered into in 2022 have full effect. The company sees good opportunities to accelerate sales in the coming quarters, especially in Sweden.