Issue of convertibles

In accordance with previously announced information on 7 December 2020, the Board of Directors proposed that the extra general meeting should resolve to issue convertibles, with deviation from the shareholders' preferential rights.

The extra general meeting today resolved, in accordance with the Board of Directors proposal, to raise a convertible loan in a nominal amount not exceeding SEK 250,000,000 through an issue of not more than 250,000,000 convertibles that may be converted to shares in the Company, entailing an increase in the number of shares of not more than 6,535,037 and an increase in the share capital of not more than SEK 653,503.70 upon full conversion of the convertibles.

The purpose of the convertible issue is to accelerate the Company’s organic and in-organic growth initiatives, as well as for general corporate purposes. The issue of convertibles is directed to Lugard Road Capital ("Lugard"), with deviation from the shareholders’ preferential right. The reason for the deviation from the shareholders’ preferential right is, in the view of the Board of Directors, that the convertible loan is offered on attractive terms for the Company, and it enables the Company to raise capital in a time and cost efficient manner in order to support a continued expansion of the Company’s operations.

Subscription of the convertibles and payment is to be paid to the Company no later than on 28 December 2020.

The conversion price is SEK 44.00 per share, which represents approximately 25 percent premium to the volume weighted average price for the Company's shares as quoted on Spotlight Market during 7 trading days preceding 7 December 2020. Each convertible has a nominal value of SEK 1.00, which is also the subscription price per convertible. The terms and conditions for the convertible loan, including the conversion price, have been established after arms’ length negotiations with Lugard. Thus, the Board of Directors assessment is that the terms and conditions of the convertibles are in accordance with market conditions.

The convertible loan falls due on 31 December 2027, and will carry an annual interest of 1.5 percent, to be paid either in in cash or by conversion into shares, at the Company’s option. With 30 days of notice prior to 31 December 2025, the Company can choose to repay the loan. If not repaid the loan continues for an additional year, with a cost of an additional 2 percent annual interest. The Company also has the ability repay the loan by giving notice 30 days prior 31 December 2026. If not repaid the loan continues for an additional year with a cost of an additional 2 percent annual interest.

The holder of the convertibles is entitled to request conversion at any time at the conversion price up to, and including, the maturity date. Upon a request for conversion of the loan, the Company has the option to pay up to 50 percent of the value in cash opposed to converting to shares.

At full conversion of the convertible loan, calculated as of the date of this announcement, the dilution would amount to approximately 9.8 percent.

For further information on the convertibles, please refer to the press release published on 7 December 2020, the notice for the extra general meeting and the complete proposal for the convertible issue held available at the Company's website.

For further information please contact:

Ståle Risa, CEO

Tel: +46 70-023 63 03, str@24sevenoffice.com

24SevenOffice in brief

24SevenOffice's vision is to empower businesses for the future, through delivering world class cloud based business systems to small and medium-sized companies in the Nordic region. The system is currently used by 56,000 companies in the Nordic region, with PwC and KPMG, among others, as accounting partners. The business system is module-based, where the modules are provided independently or packaged as complete solutions. For more information see www.24sevenoffice.com