The terms of the Rights Issue mean that six (6) existing shares give the right to subscribe for one (1) new share at a subscription price of SEK 20 per share, which corresponds to a discount of approximately 26.7% percent compared with the volume-weighted average price during the 20 trading days between 14/7 and 10/8 2021. The number of shares issued at full subscription is 12,361,207.

In the event of great interest in the Rights Issue, the Board has a mandate to decide on another new issue (“Over-allotment issue) of a maximum of 7,500,000 shares with deviation from the shareholders’ preferential rights. The price for acquiring shares in the Over-allotment Issue is SEK 20 per share and the gross proceeds from this are estimated at full subscription to amount to approximately SEK 150 million before deductions for issue costs.

The over-allotment issue enables allotment to those stakeholders who may not receive an allotment in the Rights Issue and at the same time enables an increase in the Company’s shareholder base through allotment to new stakeholders. However, the Board’s intention is to allocate both issues to existing shareholders if there is great interest.

The Board’s decision on the Rights Issue and, where applicable, the Over – allotment Issue is made with the support of the issue authorization submitted at the Annual General Meeting on May 26, 2021.

Background and motifs

The motive for the rights issue is to create additional financial conditions for implementing the Board’s expansion plans and to be able to make further company acquisitions and investments in existing operations. The Company’s strategy includes, if necessary, providing the acquired companies with working capital to enable the companies to grow organically successfully and by supporting the organization and the subsidiaries with key initiatives such as marketing, technical development, financing, special initiatives and to enable increased customer and inventory financing.

The motives are in line with the Board’s goal that Soltech will become a leading player in Swedish and European solar energy and the obvious choice for private, commercial and public customers in the choice of solar energy supplier.

The solar energy market in Sweden and in other countries is in a strong development phase. The effects of the pandemic, the climate policy strategy Green New Deal (E.U European Green Deal) and not least the IPCC’s climate report will lead to increased interest and investment in green technology. Many companies have been formed to take part in the growing market and the board of Soltech has made the assessment that this opens up for a consolidation of the market where a player with the right strategy and sufficient financial resources has the opportunity to become a market leader through acquisitions of smaller units and thus create a larger and more profitable group. This is the basis for the strategy that the Company has applied since 2019.

The strategy has meant a strong expansion for the business. Total revenues during 2020 amounted to SEK 500 million, compared with SEK 303 million in 2019 and SEK 53 million in 2018. In the financial year 2021, the company aims to reach SEK 1,000 million. In 2021, another five companies were acquired, of which two companies in electricity, Provektor Sverige AB and Rams El AB. The purpose of acquiring electrical engineering companies is to strengthen the competence and secure the deliveries of electrical installations, which is often a central but cramped sector when installing solar cells. The acquisitions also strengthen the customer base as the companies have had established customer contacts for a long time that demand solar energy.

Of the issue proceeds, which at full subscription will amount to approximately SEK 247 million, before issue costs, are reserved in order of priority:

• 65% Company acquisitions
• 25% Investments in subsidiaries
• 10% Investments in the parent company’s operating activities

Upon full subscription also of the Over-allotment Issue, the opportunities for new company acquisitions will be increased, as the Company will receive an additional SEK 150 million before issue costs, which are estimated to amount to approximately SEK 4 million.

The rights issue in summary

The right to subscribe for new shares shall accrue to the Company’s shareholders with preferential rights. Each share held as of the record date on August 20 gives one (1) subscription right (TR). It takes six (6) TRs to subscribe for one (1) new share at a subscription price of SEK 20. Subscription of shares takes place during the period 24/8 – 7/9 2021. Upon full subscription of the Rights Issue, the Company will receive approximately SEK 247 million before issue costs, which are estimated to amount to approximately SEK 4 million.

The last day for trading in the Company’s shares, including the right to receive subscription rights in the Rights Issue, is August 18, 2021. Subscription of shares with the support of subscription rights shall take place through cash payment during the period 24/8 – 7/9 2021.

Subscription of shares without subscription rights shall be made on a special subscription list
during the period 24/8 – 7/9 2021. Payment for shares subscribed for without the support of subscription rights shall be made no later than three banking days after the issuance of the settlement note showing the allotment. The Board has the right to extend the subscription period and the last day for payment.

In the event of a major interest in the Rights Issue, the Board has a mandate to decide on an additional new issue (“Over-allotment Issue”) of a maximum of 7,500,000 shares with deviation from the shareholders’ preferential rights. The price for acquiring shares in
The over-allotment issue is SEK 20 per share and the gross payment from this is estimated at full subscription to amount to approximately SEK 150 million before deductions for
issue costs. The purpose of the Over-allotment Issue is to create the conditions for an even faster expansion through further acquisitions. The over-allotment issue is conditional on the Rights Issue being oversubscribed.

The rights issue amounts to a maximum of 12,361,207 shares. This means that the share capital increases by a maximum of SEK 618,060.35 to a maximum of SEK 4,326,42.50. The shares issued in connection with the Offer correspond to approximately 14% percent of the share capital in the Company after the completion of the new share issue (provided that the subscription is fully subscribed). Shareholders who choose not to participate in the Rights Issue will, when fully subscribed, be diluted by approximately 14 percent. Upon full utilization of the Over-allotment Issue, the share capital will increase by a maximum of SEK 375,000 to a maximum of SEK 4,701,42.50.

The over-allotment issue corresponds to a maximum of approximately 8 percent of the Company’s total share capital. In the event that both the Rights Issue and the Over-allotment Issue are utilized, the share capital will increase by SEK 993,060.35 to a maximum of SEK 4,701,422.50. The dilution will amount to a maximum of approximately 21 percent calculated as the number of new shares after the new share issue divided by the total number of shares after the new share issue.

The rights issue and the Over-allotment issue are not secured by issue guarantees or subscription commitments.

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. Trading in subscription rights takes place during the period 24 August to 2 September 2021.

Prospectus

The complete terms and conditions for the Rights Issue, as well as information about the Company in a prospectus approved by The Swedish Financial Advisory Authority, will be published on the Company’s website on 13 August 2021.

Schedule for Rights Issue and possible Over-allotment Issue

Last day for trading incl. right to participate 18/8 2021
Record date 20/8 2021
Subscription period 24/8 – 7/9 2021
Trading in subscription rights 24/8 – 2/9 2021
Board decision on allocation and possible Over-allotment Issue 9/9 2021
Press release on issue outcome 9/9 2021
Notice of allocation and dispatch of settlement notes 10/9 2021
Settlement date for settlement notes 15/9 2021

Issuing institute

For further questions regarding subscription, contact your personal bank adviser, your nominee or Soltech’s issuing institution Aktieinvest FK AB on 08 506 517 95 or emittentservice@aktieinvest.se

NOT FOR PUBLICATION, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES, AUSTRALIA, JAPAN OR CANADA OR IN ANY OTHER JURISDICTION THAT DISTRIBUTES DISTRIBUTION.

AnHui ShanLong Textile Technology Co. Ltd. and AnHui HuaChenShiJia Textile Technology Co. Ltd. Both companies have the same owner. The orders concern the installation of two solar energy plants of 2.24 and 0.65 megawatts (MW), and together they are estimated to generate annual revenues of approximately SEK 2.35 million, or approximately SEK 47 million during the agreements' 20-year term. The investment in the facilities, which will be owned by Advanced Soltech's wholly owned subsidiaries in China, amounts to approximately SEK 17.3 million and construction is planned to start in the third quarter of 2021. The projects achieve good profitability completely without subsidies and are located in Anhui province.

Advanced Soltech's CEO Max Metelius comments:

-Our sales organization continues to reap success in Anhui Province. It is especially fun to be able to deliver several good projects to the same customer. Our projects are robust and durable and have previously been tested by typhoons and now also by recent floods and storms, which has not led to any significant damage.

Advanced Soltech's CEO Max Metelius comments:

-Our sales team continues to reap success in Fujian Province. We are experiencing a growing interest in solar energy in China from both customers and other players.

Advanced Soltech's CEO Max Metelius comments:

-We experience that companies increasingly see solar energy as a natural part of their energy supply. This particular customer is a large scale producer of canned vegetables for both the domestic and the international market.

Advanced Soltechs CEO Max Metelius comments:

-We are experiencing strong demand from both the private and public sectors. This customer is a well-established Japanese manufacturer of parts for the automotive industry that fits well into our customer portfolio.

The solar energy group Soltech and Skanska, which is one of Sweden's leading construction companies, has now started their innovation collaboration. It is Skanska Kommersiell Utveckling Norden, a wholly owned subsidiary who develops commercial properties, that has joined forces with the solar energy group. After signing the agreement both parties together will take a step further in their ambition to develop new building solutions with solar energy as the primary target.

– We see great value in merging our solar energy expertise with Skanska's expertise to create synergies where tomorrow's energy solutions are born. The emphasis will be on creating scalable overall solutions making commercial properties even more sustainable in the future. I want to thank Skanska for a good collaboration so far and look forward to breaking ground together, says Anna Svensson, Head of Innovation, Soltech Energy.

Leading actors working together for innovation
Soltech is a leading solar energy group in Sweden with 17 subsidiaries that develop, sell, install and optimize solar energy solutions for roofs and facades as well as charging and storage solutions. Soltech will now collaborate with one of the leading construction groups, Skanska, in the hunt for tomorrow's innovations.

– It feels exciting to be able to have Soltech with us when we create the foundation for our future innovations with the goal of finding even better and more sustainable solutions in our upcoming commercial real estate projects for the Nordic market. We have high goals and clear quality and environmental ambitions for everything we do. Therefore, it is important for us to have a competent partner with whom we can have a long-term collaboration on sustainable innovation. This is exactly what we have found in Soltech, says Henrik Ahnström, Director of Product, Process & Innovation

The solar energy group Soltech Energy has a transformation strategy which means that traditional roof, façade and electricity companies are acquired to the family and will add solar energy solutions to their business in order to meet both customers and environmental ambitions for green energy solutions. The strategy is ongoing and successful. Soltech's subsidiary, NP Gruppen has now signed a solar energy agreement with Bostadsbolaget, a non-profit housing company in Gothenburg. The agreement includes that NP Gruppen will build solar energy solutions on eight of Bostadsbolaget's properties in Norra Biskopsgården. Construction will start after the summer, and the solar energy facilities are expected to be completed later this year.

– It is with great pride that we can state that this project now goes from the drawing table to reality. This means that on all eight buildings we will integrate solar energy into people's everyday lives. Bostadsbolaget's ambitious sustainability goals and our solar energy solutions will now be a perfect match and we look forward to making Norra Biskopsgården a little greener together, says Marcus Juhlin, Solar energy manager at NP Gruppen.

Ferroamp balances the energy
In addition to the solar energy solution, a Ferroamp system will also be installed, to even out power peaks and to optimize electricity usage when it is needed the most and at the lowest cost. Oskar Scheiene, Energy Manager at Bostadsbolaget, looks with great confidence at the upcoming solar energy investment in the district.

– We are happy that we have signed on for our largest solar energy project to date. This is an investment that is completely in line with our ambitions to reduce Bostadsbolaget's climate footprint and increase our share of renewable energy. It is also an investment that fits well into a cityscape and environment where we want to highlight sustainability in every way. We are looking forward to work closely with NP Gruppen to turn the sun's rays into green energy in people's homes in Norra Biskopsgården, says Oskar Scheiene, Energy Manager at Bostadsbolaget.

Swede Energy has a vast experience of building large roof-mounted solar energy solutions on logistics and retail properties. The company has now been commissioned by the Nordic region's largest sports chain, XXL, to build a roof-mounted solar energy solution at the XXL store in Örebro. The whole facility will measure 2,000 m2 and generate green energy for the department store's operation.

– It feels great that we now have cooperation with the Nordic region's largest sports chain, which clearly sees the value of green energy power. We are convinced that other chain stores will follow, as solar energy is an excellent alternative for property owners and store owners with ambitions to advance within sustainability, says Christoffer Caesar, CEO of Swede Energy.

Solar energy is the way forward for XXL
XXL is the Nordic region's largest sports chain and has 90 department stores in Norway, Sweden, Finland and Austria, of which 29 are located in Sweden. XXL has declared a sustainability strategy to reduce its carbon footprint by placing strict demands on external products that the chain sells, but also to continue its internal efforts for more solar energy.

– For XXL, sustainability is important at all levels and the solar energy solution at our department store in Örebro will be a clear step along the way. We have high demands on our sustainability efforts and solar energy is fully in line with our ambition to reduce our CO2 emissions by 55 percent by 2030. We are very much looking forward to our first solar cell plant in Sweden, says Anders Lindblom, CEO of XXL Sweden.

Soltech Energy's subsidiary Swede Energy has a vast experience of installing large solar energy solutions and has completed a nearly 2,000 m2 solar cell plant with an output of 352 kW on Speedtools property in Habo.

– Helping prominent, local companies finding the way to green solar energy is the type of projects that really make me proud. Speedtool has a long experience, and it feels very good to have been commissioned to install their solar energy solution. We are looking forward to being a part of their continued journey, says Rickard Lantz, Sales Manager at Swede Energy.

High-tech company with environmental ambitions
Speedtool was founded in 1997 and has clients in the automotive, aerospace, offshore, appliances and furniture industries. The company's production is situated in Habo, just north of Jönköping. Now Speedtool has become self-sufficient in energy thanks to the solar energy solution. The company's CEO, Jimmy Korsbeck, believes that one of the motivators for customer to choose supplier on, is the ability to install solar energy solutions.

– Sustainability investments are an important factor for us, showing both the surrounding world, our customers and all our fantastic employees that we not only talk but also act. The solar energy solution will help us operate our high-tech machinery in a climate-smart way. Something that benefits the company and the environment in both the short and long term, says Jimmy Korsbeck, CEO of Speedtool.

Swede Energy has a vast experience of installing large and complex solar energy solutions and has now received an order from the real estatator Emilshus of a 4,000 m2 of solar panels at the property in Värnamo, where the global trading company Bufab is the tenant.

– We are very proud to have received this assignment from Emilshus. It is a leading developer that clearly prioritize sustainability. The planned solar energy facility proves their green ambitions, and we are very much looking forward to ensuring that the tenant Bufab will be able to enjoy the rays of the sun in their future business, says Rickard Lantz, Sales Manager at Swede Energy.

Locally produced solar energy in Värnamo
The property is located in Värnamo, where Emilshus manages several properties. As part of the company's sustainability strategy, the tenant Bufab now will be supplied with green energy directly from the sun. Something that benefits both Emilshus and Bufab.

– Sustainability investments of this kind are completely right for us. Energy efficiency in our properties is important and it’s obvious that solar energy will help us in our sustainability efforts. We are grateful for the smooth collaboration with Swede Energy and look forward to our new solar energy solution, says Lisa Johansson, Sustainability Manager at Emilshus.