Summary of the Directed Issue and the Compensation Issue

• The Directed Issue comprises of a maximum of 5,482,456 shares and is directed to Alps Alpine. Upon full subscription in the Directed Issue, Acconeer will receive approximately SEK 25 million before deduction of issue costs. The subscription price in the Directed Issue is SEK 4.56 per share, which corresponds to the closing price of the Company's share on 13 February 2025.
• The right to subscribe for the new shares shall, with preferential rights, be granted to shareholders in proportion to the number of shares they already own, whereby one (1) existing share shall entitle the holder to three (3) subscription rights, and thirty-four (34) subscription rights shall entitle the holder to subscribe for one (1) new share.
• The Compensation Issue comprises a maximum of 5,484,249 shares. Upon full subscription in the Compensation Issue, Acconeer will receive approximately SEK 25 million before deduction of issue costs.
• The last day of trading in Acconeer's shares including the right to receive subscription rights in the Compensation Issue is 12 March 2025. The shares are traded excluding the right to receive subscription rights in the Compensation Issue from 13 March 2025.
• The subscription price in the Compensation Issue is SEK 4.56 per share, which corresponds to the closing price of the Company's share on 13 February 2025.
• The subscription period in the Compensation Issue runs from 18 March 2025 to 1 April 2025.
• The Compensation Issue is covered by subscription undertakings of approximately 17.12 per cent and free of charge bottom and top guarantee undertakings of approximately 8.0 and 74.88 per cent respectively. In total, 100 per cent of the Compensation Issue is thus covered by subscription undertakings and free of charge bottom and top guarantee commitments.
• The full terms and conditions of the Compensation Issue, including further information about the Company, will be available in an information memorandum expected to be published on or around 11 March 2025 (the “Information Memorandum”).

Background and motives

Acconeer's self-developed radar technology offers a unique combination of precision, power consumption and size. The company launched its first radar sensor in 2018 and has since then sold over three million units, including more than one million in the last 12 months. The company is in the final stages of developing its next-generation radar sensor, the A2, which will open up new, advanced applications and commercial opportunities.

Acconeer made significant progress last year, both in product development and commercially:

1. A number of new design wins in the automotive sector, in total the Company has now communicated design wins with an estimated value of USD 74 million 2024-2032.
2. Mass production of the first cars with presence detection based on Acconeer radar technology.
3. An updated go-to-market strategy and organisation was launched with a clear focus in four product areas, where the Company has a strong offering and sees opportunities to obtain larger customers. In all these areas, concrete progress is already visible, with strengthened key relationships, improved product offerings and a stronger sales pipeline. The company recruited sales representatives in key markets and signed agreements with major distributors to accelerate design-in work with high-volume customers.
4. In December, the chip design for the production variant of the A2 was finalised, which is a very important milestone in the project. Earlier in the year, prototypes were evaluated and successfully tested by customers in a real-world environment, leading to a first design win in the automotive industry. Acconeer also sees significant opportunities with A2 outside the automotive industry and aims to get its first design win during the year.

With this progress and the new strategy, the Company is well placed to achieve the previously communicated financial targets:

1. First EBIT positive quarter in 2025.
2. First cash flow positive quarter during 2026.
3. Revenues of more than SEK 300 million in 2027.
4. Long-term EBIT margin of at least 25 per cent.

Thomas Rex, Chairman of the Board of Acconeer comments: “We are delighted that Alps Alpine is entering into a directed share issue and continues to show strong confidence in Acconeer as a company, our technology and the market for our sensors. It is also gratifying that we can present a compensatory issue which is carried out without a discount and that is fully underwritten by major shareholders, board and management free of charge. This compensatory issue gives all shareholders the opportunity to participate on equal terms in the company's continued journey and value development”.

Masaaki Tanaka, Vice President Sensor & Communication Business, New Business at Alps Alpine comments: “We started evaluating Acconeer's technology back in 2017 and quickly recognised the potential of the innovative mmWave radar technology and a significant market opportunity in the automotive industry. In 2020, we invested in Acconeer through a directed share issue. In 2021, we entered into a joint development agreement for the next generation radar sensor “A2” to capitalise on the combined strengths of Acconeer's unique radar technology and Alpine's automotive expertise. Our collaboration has so far resulted in several launches for access control and interior detection applications with several leading car manufacturers. We also use Acconeer's technology in products for level measurement, distance measurement and load tracking. We strongly believe in the business opportunity, and we are increasing our investments in our joint development project through the directed share issue to ensure that together we bring a world-leading product to the market”.

The proceeds from the Directed Share Issue and the Compensation Issue are planned to be used to finance:

1. mainly the finalisation of the next generation radar sensor, A2
2. the commercialisation of A2 in new markets, development in new applications outside the automotive industry,
3. efforts with the aim of increasing sales and other business purposes.

The Directed Share Issue

The Board of Directors of Acconeer has today decided to propose that the Extraordinary General Meeting resolves on the Directed Share Issue comprising a maximum of 5,482,456 shares at a subscription price of SEK 4.56 per share. Through the Directed Share Issue, the Company will receive proceeds of approximately SEK 25 million before deduction of issue costs. The right to subscribe for the new shares shall only, with deviation from the shareholders' preferential rights, be granted to the existing and strategically important shareholder Alps Alpine.

The reasons for the deviation from the shareholders' preferential rights and for the Directed Share Issue being directed to an existing shareholder are as follows. Prior to the decision to propose the Directed Share Issue, the Board of Directors has carefully investigated and considered alternative financing options, including raising capital solely through a rights issue. However, after an overall assessment and careful consideration, the Board of Directors considers that a new share issue carried out with deviation from the shareholders' preferential rights in combination with a rights issue is a more favourable alternative for the Company and the Company's shareholders than an isolated rights issue and that it is objectively in the interest of both the Company and its shareholders to carry out the Directed Share Issue. The Board of Directors has considered, inter alia, the following.

Alps Alpine is an existing shareholder in the Company and an important partner. The reason why the Directed Share Issue is directed to an existing shareholder in the Company is that it has expressed and shown a long-term interest in and commitment to the Company, which, according to the Board of Directors, creates security and stability for both the Company and its shareholders. Alps Alpine is a strategically important investor, and without Alps Alpine it would not have been possible for the Company to secure the financing of the A2 project. At the same time, other shareholders are given the opportunity to subscribe for shares on the same terms through the Compensation Issue.

The Company is in an important phase and has a need for financing to secure the Company's long-term operations. A more extensive and isolated rights issue would require significantly more time and resources to implement and entail a higher risk of negative impact on the share price, especially considering the current volatile and challenging market conditions. From a shareholder perspective, an isolated rights issue thus entails a risk of a negative effect on the share price compared to a directed share issue in combination with a rights issue.

Considering the above, the Board of Directors' overall assessment is that the reasons for carrying out a directed share issue in combination with a rights issue outweigh the reasons for carrying out a more extensive isolated rights issue, and that the Directed Share Issue to Alps Alpine is therefore in the interest of both the Company and all its shareholders.

The Board of Directors has, prior to the resolution on the Directed Share Issue, placed great importance on ensuring that the subscription price shall be on market terms in relation to the prevailing share price. The subscription price has, after arm's length negotiations between the Company and Alps Alpine, been set at SEK 4.56 per share, which corresponds to the closing price of the Company's share on 13 February 2025. Considering this, the Board of Directors makes the assessment that the subscription price is market-based and reflects the demand for the Company's shares.

Alps Alpine has, through a subscription undertaking, undertaken to subscribe for the shares in the Directed Share Issue and to vote in favour of the Directed Share Issue and the Compensation Issue at the Extraordinary General Meeting, provided that the Company completes the fully secured Compensation Issue.

Compensatory Issue

As part of the agreement with Alps Alpine and to compensate the shareholders who do not participate in the Directed Share Issue, the Board of Directors proposes that the Extraordinary General Meeting resolves on the Compensation Issue of a maximum of 5,484,249 shares which, if fully subscribed, would provide the Company with approximately SEK 25 million before deduction of issue costs. Shareholders on the record date 14 March 2025 will receive three (3) subscription rights for each (1) existing share, whereby 34 subscription rights shall entitle to subscription of (1) new share. The subscription price in the Compensation Issue shall be SEK 4.56 per share, which corresponds to the closing price of the share of the company on 13 February 2025.

In the event that all shares are not subscribed for with subscription rights, the Board of Directors shall, within the framework of the maximum amount of the Compensation Issue, resolve on allotment of shares subscribed for without subscription rights, whereby allotment shall be made as follows. Firstly, allotment shall be made to those who have subscribed for shares with subscription rights (regardless of whether they were shareholders on the record date or not) and who have expressed an interest in subscribing for shares without subscription rights and, in the event that allotment to these cannot be made in full, allotment shall be made pro rata in relation to the number of subscription rights that each of those who have expressed an interest in subscribing for shares without subscription rights have utilised for subscription of shares. Secondly, allotment shall be made to others who have subscribed for shares in the Compensation Issue without subscription rights and, if allotment to these cannot be made in full, allotment shall be made pro rata in relation to the total number of shares for which the subscriber has applied for subscription. Thirdly, allotment shall be made to those who have provided guarantee commitments regarding subscription of shares, in proportion to such guarantee commitments. To the extent that allotment at any stage according to the above cannot be made pro rata, allotment shall be made by drawing lots.

Trading in subscription rights will take place on Nasdaq First North Growth Market during the period from 18 March 2025 up to and including 27 March 2025 and trading in paid subscribed shares (BTA) will take place on Nasdaq First North Growth Market from 18 March 2025 up to and including 22 April 2025.

Underwriting and guarantee commitments

Alps Alpine has through a subscription undertaking undertaken to subscribe for the shares in the Directed Share Issue provided that the Company completes the Compensation Issue.

BGA Invest AB, Sifonen Aktiebolag, Lars-Erik Wernersson AB, Thomas Rex (chairman of the board) and Björn Bengtsson (CFO) have provided subscription commitments for the Compensation Issue totalling approximately SEK 4.28 million, corresponding to approximately 17.12 per cent of the Compensation Issue. The subscription commitments are distributed as follows.

In addition, the Company has received underwriting commitments free of charge from BGA Invest AB, Sifonen Aktiebolag, Thomas Rex and Ted Hansson (CEO), amounting to a total of approximately SEK 2.0 million, which corresponds to approximately 8.0 per cent of the Compensation Issue. The underwriting commitments are distributed as follows.

BGA Invest AB, Sifonen Aktiebolag, Thomas Rex, Ted Hansson, Björn Bengtsson and Lars-Erik Wernersson AB have also entered into top guarantee commitments free of charge amounting to a total of approximately SEK 18.72 million, corresponding to approximately 74.88 per cent of the Compensation Issue. The top guarantee commitments are distributed as follows.

In total, 100 per cent of the Compensation Issue is thus covered by free of charge subscription undertakings and free of charge bottom and top guarantee undertakings.

No compensation is paid for subscription commitments made, neither in the Directed Share Issue nor in the Compensation Issue, nor for bottom and top guarantee commitments made in the Compensation Issue. Neither the subscription commitments nor the bottom and top guarantee commitments are secured by bank guarantee, blocked funds, pledge or similar arrangements.

Change in number of shares and share capital and dilution

Through the Directed Share Issue, the number of shares in Acconeer will increase by a maximum of 5,482,456 shares, from 62,154,827 shares to 67,637,283 shares, and the share capital will increase by a maximum of SEK 274,122.8, from SEK 3,107,741.35 to SEK 3,381,864.15, resulting in a dilution of approximately 8.1 per cent.

Through the Compensation Issue, the number of shares in Acconeer will increase by a maximum of 5,484,249 shares, from 67,637,283 shares to 73,121,532 shares, and the share capital will increase by a maximum of SEK 274,212.45, from SEK 3,381,864.15 to SEK 3,656,076.60. For existing shareholders who do not participate in the Compensation Issue, this means, at full subscription, an additional dilution effect of approximately 7.5 per cent of the votes and capital in the Company.

The total dilution effect, if both the Directed Share Issue and the Compensation Issue are fully subscribed, amounts to approximately 15 per cent.

Preliminary timetable for the Compensation Issue

The timetable is indicative only and dates are subject to change.

The Extraordinary General Meeting

The Company will issue a separate press release convening the Extraordinary General Meeting to be held on 6 March 2025.

Information memorandum

Full terms and conditions of the Compensation Issue and other information about the Company will be set out in the Information Memorandum which is expected to be published by the Company before the subscription period commences.

Advisers

Moll Wendén Advokatbyrå is legal adviser to Acconeer AB in connection with the Directed Share Issue and the Compensation Issue and Eminova Fondkommission AB is issuing agent in connection with the Directed Share Issue and the Compensation Issue.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEALAND OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES. PLEASE REFER TO SECTION “IMPORTANT INFORMATION” BELOW.

Summary

• Existing shareholders in the Company receive one (1) subscription right for each share held on the record date. Three (3) subscription rights entitle the subscription of four (4) new shares in the Rights Issue.
• The subscription price in the Rights Issue is SEK 4.20 per share, which corresponds to a discount of approximately 27.7 per cent compared to the theoretical price after the separation of subscription rights, based on the closing price for the Acconeer share on 4 March 2024 on Nasdaq First North Growth Market.
• Through the Rights Issue, the Company will receive approximately SEK 149 million before deductions for transaction costs.
• The net proceeds are intended to be used for the following purposes:
  • repayment of debt, including accrued interest, to Buntel AB and Exelity AB (about SEK 32 million) and the Swedish Tax Agency (about SEK 15 million);
  • research and development, in particular the completion of A2, Acconeer’s next generation radar sensor; and
  • general corporate purposes, aimed at, but not limited to, accelerating sales.
• The record date for participating in the Rights Issue is 12 March 2024.
• The subscription period in the Rights Issue takes place from and including 14 March 2024, up to and including 28 March 2024.
• For existing shareholders who refrain from participating in the Rights Issue, the dilution amounts to approximately 57.1 per cent of the number of shares and votes in the Company after the Rights Issue.
• The Rights Issue is fully covered by a combination of subscription undertakings, including from the largest shareholder BGA Invest AB, the Chairman of the Board Thomas Rex and the Company's CEO Lars Lindell, and guarantee commitments.

Background and reasons

Acconeer’s radar sensor combines the best aspects of radar technologies through its low power consumption of pulsed radar systems and the high precision of coherent radar. This opens new opportunities for many applications with a diverse range of use cases – all in a component measuring five by five by 0.8 millimeters. Acconeer launched its first product in 2018 and has since sold more than two million radar sensors. The Company is currently in the process of expanding its product portfolio, collaborating with its strategic partner Alps Alpine to develop the next generation of pulsed coherent radar sensors, called A2.

Acconeer’s market is expected to continue growing rapidly, driven by major industry trends related to digitalization, such as 5G, artificial intelligence, and the Internet of Things. Currently, sensors based on ultrasound, infrared light, or camera technology are predominantly used. Acconeer doesn't need to create a new market but can replace existing solutions, each of which has its weaknesses.

Acconeer’s assessment is that its radar is the first radar with the size, power consumption, precision and price to enable the use of radar in e.g., consumer electronics. The applications for a radar sensor with these characteristics are numerous also in other areas such as smart cities, Internet of Things, industry, agriculture and automotive.

Intensive development of new applications is ongoing in all these areas, requiring more advanced sensors for gesture control, presence detection, level measurement and material recognition. In 2021, Acconeer signed a development agreement with Alps Alpine to develop the next generation of pulsed coherent radar sensors. This type of sensor will, among other things, be able to measure the angle of an object, enabling a wide range of use cases.

Acconeer is now prepared for the next phase of its development, consisting of a forward-leaning strategy to accelerate commercializing its first-generation product and advancing its technology for next-generation radar sensors. With this intensified development and commercialization strategy, the company aims to take significant steps towards realizing the potential of its technology in radar sensors.

To support Acconeer’s aforementioned strategy, the Company has resolved to carry out the Rights Issue and will receive a total of approximately SEK 149 million before transaction costs. The company has, through written agreements, obtained subscription and guarantee commitments equivalent to the entire Rights Issue.

Use of proceeds

The net proceeds from the Rights Issue are expected to be sufficient to fund the Company's business plan until the Company achieves positive cash flow, which is anticipated to occur during 2026. The net proceeds are intended to be used for the following purposes:

• repayment of debt, including accrued interest, to Buntel AB and Exelity AB (about SEK 32 million) and the Swedish Tax Agency (about SEK 15 million)[1];
• R&D, in particular the completion of A2, Acconeer’s next generation radar sensor; and
• general corporate purposes, aimed at, but not limited to, accelerating sales.

The Rights Issue

The Board of Directors of the Company has today, based on the authorization granted by the Extraordinary General Meeting held on 1 March 2024, resolved to carry out a fully guaranteed rights issue of a maximum of 35,517,044 shares, with preferential rights for the Company’s existing shareholders in relation to the number of shares they own on the record date of 12 March 2024.

Existing shareholders receive one (1) subscription right for each share held on the record date. Three (3) subscription rights shall give the right to subscribe to four (4) new shares in the Company during the period 14 March 2024 until and including 28 March 2024. The subscription price corresponds to a discount of approximately 27.7 per cent compared to the theoretical price after the separation of subscription rights based on the closing price on 4 March 2024 on Nasdaq First North Growth Market. The Rights Issue will provide Acconeer up to SEK 149,171,584.80 before deductions for transaction costs through the issue of 35,517,044 shares.

The Rights Issue entails that the number of shares in Acconeer will increase by a maximum of 35,517,044, from 26,637,783 to 62,154,827 and that the share capital will increase by a maximum of approximately SEK 1,775,852 from approximately SEK 1,331,889 to approximately SEK 3,107,741.

For existing shareholders who do not participate in the Rights Issue, a dilution effect corresponding to up to approximately 57.1 per cent of the number of shares and votes in the Company arises after the Rights Issue. Shareholders who choose not to participate in the Rights Issue have the opportunity to compensate for the financial dilution effect by selling their subscription rights.

The final day of trading in Acconeer’s shares including the right to obtain subscription rights in the Rights Issue is on 8 March 2024. Subscription of shares with the support of subscription rights must be made through cash payment during the period 14 March – 28 March 2024. Subscription of shares without support of subscription rights shall take place through a special subscription list during the period 14 March – 28 March 2024. Payment for shares subscribed for without the support of subscription rights shall be paid in cash no later than two banking days after the issuance of the settlement note giving notice of allocation. The board has the right to extend the subscription period as well as the final day for payment.

The complete terms and conditions for the Rights Issue as well as information about the Company will be presented in a prospectus which, after approval by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen), will be made public and published on the Company's website on 12 March 2024.

Subscription undertakings, guarantee commitments and voting commitments

Existing shareholders Alps Alpine Co., Ltd., the Ingvarsson Family (through Sifonen AB and privately), Chairman of the Board Thomas Rex, and CEO Lars Lindell have since earlier undertaken to subscribe for shares, corresponding to their respective pro rata shares, in the Rights Issue. In addition, BGA Invest AB, the Company's largest shareholder, has on 4 March 2024 entered into a subscription undertaking of SEK 10 million. Total subscription undertakings amount to approximately SEK 30 million, equivalent to approximately 20 per cent of the Rights Issue.

In addition to the aforementioned subscription commitments, external guarantors have provided guarantee commitments subject to customary conditions which, in aggregate, amount to approximately SEK 130 million, equivalent to approximately 87 per cent of the Rights Issue.

Thus, the Rights Issue is fully covered by subscription undertakings and guarantee commitments.

For the guarantee commitments, a guarantee commission of 10 per cent of the guaranteed amount shall be paid as a cash remuneration. No remuneration shall be paid for the subscription undertakings or declarations of intention to subscribe for shares. Neither of these commitments are secured by bank guarantee, blocked funds, pledges or similar arrangements.

Further information regarding the parties who have entered subscription undertakings and guarantee commitments will be available in the prospectus published before the start of the subscription period.

Lock-up undertakings

Prior to the Rights Issue, all board members and key executives in the Company have entered into lock-up undertakings, including commitments not to dispose of financial instruments in the Company, with certain exceptions. The lock-up undertakings expire 180 days after the announcement of the outcome of the Rights Issue.

Furthermore, the Company has undertaken in relation to Carnegie Investment Bank AB, with customary exceptions, not to issue additional shares or other share-related instruments for a period of 180 days after the announcement of the outcome of the Rights Issue.

Prospectus

The prospectus and subscription form will be made available before the subscription period commence on Acconeer’s website, www.acconeer.com, as well as on Carnegie Investment Bank AB's (publ) website, www.carnegie.se.

Indicative timetable

Advisers

In conjunction with the Rights Issue, the Company has engaged Carnegie Investment Bank AB (publ) as Sole Global Coordinator and Bookrunner, and Advokatfirman Schjødt as legal advisor.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEALAND OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES. PLEASE REFER TO SECTION “IMPORTANT INFORMATION” BELOW.

Summary

• The Board of Directors in Acconeer announces its intention to resolve on a Rights Issue amounting to approximately SEK 150 million before deductions for transaction costs. An EGM, which is planned to take place on 1 March 2024, is proposed to authorize the Board of Directors to resolve on the Rights Issue.
• The Rights Issue is fully covered by a combination of subscription undertakings and guarantee commitments. Provided that the EGM resolves to change the limits of the number of shares and share capital in the Articles of Association and grants the Board of Directors authorization to resolve on the Rights Issue and the Board of Directors resolves on the Rights Issue:
  • existing shareholders Alps Alpine Co., Ltd., the Ingvarsson Family (through Sifonen AB and privately), Chairman of the Board Thomas Rex, and CEO Lars Lindell have undertaken to subscribe for shares, corresponding to their respective pro rata shares, in the Rights Issue and committed to vote in favor of all proposals at the EGM. Total subscription undertakings from these amount to approximately SEK 20 million, equivalent to approximately 13 per cent of the Rights Issue;
  • external guarantors have provided guarantee commitments subject to customary conditions which, in aggregate, amount to approximately SEK 130 million, equivalent to approximately 87 per cent of the Rights Issue; and
  • BGA Invest AB, Acconeer’s largest shareholder, has committed to vote in favor of all proposals at the EGM.
• In connection with the Rights Issue, Acconeer’s Board of Directors has resolved on financial targets. These are:
  • Net sales of more than SEK 300 million in 2027;
  • EBIT break-even during 2025; and
  • Long-term EBIT margin of at least 25 per cent.
• In connection with the Rights Issue, Acconeer has decided to communicate preliminary financial information for FY 2023. For FY 2023, net sales amounted preliminarily to approximately SEK 35 (47) million, gross profit amounted preliminarily to approximately SEK 25 (31) million, and EBIT amounted preliminarily to approximately SEK -47 (-47) million. At the end of FY 2023, cash and cash equivalents amounted preliminarily to approximately SEK 38 (90) million.
• The subscription period in the Rights issue is expected to take place from and including 14 March 2024, up to and including 28 March 2024.
• The Rights Issue, including full terms, inter alia, subscription price, number of new shares issued and increase of the share capital, is expected to be resolved by the Board of Directors around 5 March 2024. The subscription price in the Rights Issue will be priced at a customary discount to the theoretical ex-rights price (“TERP”).
• In connection with the Rights Issue, the Company has updated its financial calendar.

Background and reasons

Acconeer’s radar sensor combines the best aspects of radar technologies through its low power consumption of pulsed radar systems and the high precision of coherent radar. This opens new opportunities for many applications with a diverse range of use cases – all in a component measuring five by five by 0.8 millimeters. Acconeer launched its first product in 2018 and has since sold more than 1.75 million radar sensors. The Company is currently in the process of expanding its product portfolio, collaborating with its strategic partner Alps Alpine to develop the next generation of pulsed coherent radar sensors, called A2.

Acconeer’s market is expected to continue growing rapidly, driven by major industry trends related to digitalization, such as 5G, artificial intelligence, and the Internet of Things. Currently, sensors based on ultrasound, infrared light, or camera technology are predominantly used. Acconeer doesn't need to create a new market but can replace existing solutions, each of which has its weaknesses.

Acconeer’s assessment is that its radar is the first radar with the size, power consumption, precision and price to enable the use of radar in e.g., consumer electronics. The applications for a radar sensor with these characteristics are numerous also in other areas such as smart cities, Internet of Things, industry, agriculture and automotive.

Intensive development of new applications is ongoing in all these areas, requiring more advanced sensors for gesture control, presence detection, level measurement and material recognition. In 2021, Acconeer signed a development agreement with Alps Alpine to develop the next generation of pulsed coherent radar sensors. This type of sensor will, among other things, be able to measure the angle of an object, enabling a wide range of use cases.

Acconeer is now prepared for the next phase of its development, consisting of a forward-leaning strategy to accelerate commercializing its first-generation product and advancing its technology for next-generation radar sensors. With this intensified development and commercialization strategy, the company aims to take significant steps towards realizing the potential of its technology in radar sensors.

To support Acconeer’s aforementioned strategy of commercializing its first-generation product and advancing its technology for the next generation, the company has decided to carry out the Rights Issue.

Assuming that the extraordinary general meeting authorizes the board to resolve on, and the board subsequently decides to carry out, the Rights Issue, Acconeer will receive a total of approximately SEK 150 million before transaction costs. The company has, through written agreements, obtained subscription and guarantee commitments equivalent to the entire Rights Issue.

Use of proceeds

The net proceeds from the Rights Issue are expected to be sufficient to fund the Company's business plan until the Company achieves positive cash flow, which is anticipated to occur during 2026. Without the Rights Issue, the Company is expected to be able to finance its business plan with existing cash until the middle of May 2024. The net proceeds are intended to be used for the following purposes:

• repayment of debt to Buntel AB and Exelity AB (approximately SEK 30 million) and to the Swedish Tax Agency[1] (approximately SEK 15 million) both of which are nominal amounts, to which accrued interest will be added;
• R&D, in particular the completion of A2, Acconeer’s next generation radar sensor; and
• general corporate purposes, aimed at, but not limited to, accelerating sales.

Extraordinary General Meeting

An EGM is proposed to resolve on changes of the limits of the number of shares and share capital in the Articles of Association and to authorize the Board of Directors to resolve on the Rights Issue. The EGM is planned to be held on 1 March 2024 and the notice will be published through a separate press release.

Subscription undertakings, guarantee commitments and voting commitments

Provided that the EGM approves the proposed changes of the limits of the number of shares and share capital in the Articles of Association and grant the Board of Directors an authorization to resolve on the Rights Issue and the Board of Directors resolves on the Rights Issue, existing shareholders Alps Alpine Co., Ltd., the Ingvarsson Family (through Sifonen AB and privately), Chairman of the Board Thomas Rex, and CEO Lars Lindell have undertaken to subscribe for shares, corresponding to their respective pro rata shares, in the Rights Issue and committed to vote in favor of all proposals at the EGM. Total subscription undertakings from these amount to approximately SEK 20 million, equivalent to approximately 13 per cent of the Rights Issue. BGA Invest AB, Acconeer’s largest shareholder, has committed to vote in favor of all proposals at the EGM.

In addition to the aforementioned subscription commitments, external guarantors have provided guarantee commitments subject to customary conditions which, in aggregate, amount to approximately SEK 130 million, equivalent to approximately 87 per cent of the Rights Issue.

Thus, the Rights Issue is fully covered by subscription undertakings and guarantee commitments.

For the guarantee commitments, a guarantee commission of 10 per cent of the guaranteed amount shall be paid as a cash remuneration. No remuneration shall be paid for the subscription undertakings or declarations of intention to subscribe for shares. Neither of these commitments are secured by bank guarantee, blocked funds, pledges or similar arrangements.

Further information regarding the parties who have entered subscription undertakings and guarantee commitments will be available in the prospectus published before the start of the subscription period.

Lock-up undertakings

Prior to the Rights Issue, all board members and key executives in the Company have entered into lock-up undertakings, including commitments not to dispose of financial instruments in the Company, with certain exceptions. The lock-up undertakings expire 180 days after the announcement of the outcome of the Rights Issue.

Furthermore, the Company has undertaken in relation to Carnegie Investment Bank AB, with customary exceptions, not to issue additional shares or other share-related instruments for a period of 180 days after the announcement of the outcome of the Rights Issue.

Financial targets

In conjunction with the Rights Issue, Acconeer’s Board of Directors has resolved on financial targets. These are:

• Net sales of more than SEK 300 million in 2027;
• EBIT break-even during 2025; and
• Long-term EBIT margin of at least 25 per cent.

Preliminary financial information for FY 2023

In conjunction with the Rights Issue, Acconeer has chosen to communicate preliminary financial information for FY 2023. For FY 2023, net sales amounted preliminarily to approximately SEK 35 (47) million, gross profit amounted preliminarily to approximately SEK 25 (31) million, and EBIT amounted preliminarily to approximately SEK -47 (-47) million. At the end of FY 2023, cash and cash equivalents amounted preliminarily to approximately SEK 38 (90) million.

Updated financial calendar

Due to the Rights Issue, the Company has updated its financial calendar. The 2023 annual report will be available on 5 March 2024, and the 2024 Q1 report will be available on 14 May 2024.

Prospectus

The prospectus and subscription form will be made available before the subscription period commence on Acconeer’s website, www.acconeer.com, as well as on Carnegie Investment Bank AB's (publ) website, www.carnegie.se.

Indicative timetable

Advisers

In conjunction with the Rights Issue, the Company has engaged Carnegie Investment Bank AB (publ) as Sole Global Coordinator and Bookrunner, and Advokatfirman Schjødt as legal advisor.

For further information, please contact

Lars Lindell, CEO Acconeer AB
Phone: +46 72-583 84 28
Email: ir@acconeer.com

About Acconeer

With ground-breaking technology, Acconeer has developed a radar sensor that opens a new world of interaction. Acconeer Micro Radar Sensor, with low power consumption, high precision, small size and high robustness, is a 60GHz robust and cost-effective sensor for detection, distance measurement, motion detection and camera-supported applications with low power consumption. Acconeer combines the advantage of low power consumption with highly accurate pulsed radar systems of coherent radar, all integrated into a component with a surface area of only 28 mm2. The radar sensor can be included in a range of mobile consumer products, from smartphones to wearables, but also in areas such as robots, drones, the Internet of Things, healthcare, automotive, industrial robots and security and monitoring systems. Acconeer is a semiconductor company and, as a business model, sells hardware to manufacturers of consumer electronics products.

Visit www.acconeer.com for more information.

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Acconeer is listed on Nasdaq First North Growth Market. Redeye is Certified Adviser.

Important information:

This announcement is not and does not form a part of any offer for selling, or a request to submit an offer to buy or acquire, shares or other securities of the Company.

Copies of this announcement are not being made and may not be distributed or sent into the United States, Australia, Hong Kong, Japan, Canada, New Zealand, or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures.

The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and accordingly may not be exercised, offered, sold, resold, 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 requirements of the Securities Act and in compliance with any applicable securities legislation in any state or other jurisdiction of the United States. The Company do not intend to register any offering in the United States or to conduct a public offering of securities in the United States.

Forward-looking statements

Matters discussed in this announcement may constitute forward-looking statements. Forward looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “deems”, “intends”, “estimate”, “will”, “may”, “continue”, “should” and similar expressions. This applies in particular to statements relating to future results, financial position, cash flow, plans and expectations of the Company's operations and management, future growth and profitability, general economic and regulatory environment and other factors affecting the Company, many of which are based on further assumptions, such as no changes in existing political, legal, fiscal, market or economic conditions or applicable law (including but not limited to accounting principles, accounting methods and tax policies), which may or may not be of importance to the Company results or its ability to operate. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward looking statements.

Potential investors should therefore not attach undue confidence to the forward-looking information herein, and potential investors are urged to read the parts of the prospectus that include a more detailed description of factors that may affect the Company's operations and the market in which the Company operates.

The information, opinions and forward-looking statements contained in this announcement speak only as at its date and could be subject to change without notice.