Minesto intends to carry out a rights issue of approximately SEK 130 million

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GOTHENBURG, Sweden, Oct. 21, 2026 /PRNewswire/ — The Board of Directors of Minesto AB (publ) (“Minesto” or the “Company”) has today resolved on an intention to carry out an issue of shares with preferential rights for the Company’s existing shareholders of approximately SEK 130 million (the “Rights Issue”), and to convene an Extraordinary General Meeting to be held on 23 November 2026 to resolve on an amendment of the Articles of Association and a new authorisation for the Board of Directors to resolve on issues of shares and warrants (the “Authorisation”) in order to enable the Rights Issue. The Board of Directors intends to formally resolve on the Rights Issue on 25 November 2026, by virtue of the authorisation from the Extraordinary General Meeting. The Company has received subscription undertakings from the Company’s largest shareholder Corespring New Technology AB (“Corespring”) and from shareholding members of the Company’s management amounting to a total of approximately SEK 10.5 million, and a bottom guarantee commitment from Vator Securities AB (“Vator”) amounting to approximately SEK 67.5 million. The Rights Issue is thus covered by subscription undertakings and a guarantee commitment of approximately SEK 78 million, corresponding to approximately 60 percent of the Rights Issue.

Minesto intends to use the proceeds from the Rights Issue to secure project investments for the first commercial arrays, with Hestfjord in the Faroe Islands and Euro Dragon Farm in Ireland as the lead candidates, and for sales of microgrid systems emerging from the ongoing development in the Faroe Islands. In addition, the proceeds will cover costs for Dragon technology advancements for scale-up, as well as working capital for general corporate purposes.

Notice of the Extraordinary General Meeting will be announced in a separate press release.

“With Dragon technology in operation with high production performance, an efficient and validated service and installation concept, and high-quality project investment cases ready, Minesto is now leading the commercial build-out of ocean energy.

We are focused on securing customer investments for the first Dragon farms, Hestfjord in the Faroe Islands and Euro Dragon Farm in Ireland, the first commercial projects based on our unique technology.

Being selected for an investment grant of EUR 20.2 million from the EU Innovation Fund for Euro Dragon Farm in Ireland is our most significant commercial milestone to date, which together with the Rights Issue strengthens our ability to drive the business forward.

At the same time, we are building on the Faroese microgrid to secure further market entry projects together with our local partners in a large number of selected markets around the world.

We are grateful for the continued support from our shareholders,” says Martin Edlund, CEO of Minesto.

Summary

• The Board of Directors has today resolved on an intention to carry out the Rights Issue. An Extraordinary General Meeting is planned to be held on 23 November 2026 to resolve on the Authorisation for the Board of Directors, which will form the basis for the Board of Directors’ resolution on the Rights Issue and the final terms, as well as an amendment of the Articles of Association.
  
  
  
  
• The Rights Issue will, provided that the Authorisation is adopted by the Extraordinary General Meeting and that the Board of Directors subsequently resolves on the Rights Issue, if fully subscribed, provide Minesto with approximately SEK 130 million before issue costs.
  
  
  
  
• Final terms of the Rights Issue, including the subscription price, the subscription ratio, the increase of the share capital and the number of shares to be issued, are intended to be resolved by the Board of Directors in connection with its formal resolution on the Rights Issue on 25 November 2026, by virtue of the Authorisation, and published on the same day. The subscription price per share in the Rights Issue will be set at a discount of approximately 30 percent to TERP (theoretical share price after separation of subscription rights), based on the volume-weighted average price of the Company’s share on Nasdaq First North Growth Market during the ten (10) trading days immediately preceding the Board of Directors’ resolution on the Rights Issue, however not lower than the quota value of the Company’s share.
  
  
  
  
• Minesto intends to use the net proceeds from the Rights Issue to (i) advance the Company’s first commercial arrays, Hestfjord in the Faroe Islands and Euro Dragon Farm in Ireland, towards investment decision and secure project investments for these, (ii) secure further market entry projects building on the Faroese microgrid project, (iii) implement Dragon technology advancements for scale-up, (iv) support partner-led project development and provide match funding for grant-funded, market-enabling projects, and (v) provide working capital for general corporate purposes.
  
  
  
  
• The Rights Issue is covered to approximately SEK 10.5 million by subscription undertakings from Corespring (SEK 10 million) and all shareholding members of the Company’s management (approximately SEK 0.5 million), and to approximately SEK 67.5 million by a bottom guarantee commitment from Vator, corresponding to approximately 60 percent of the Rights Issue in total.
  
  
  
  
• Provided that the Extraordinary General Meeting on 23 November 2026 resolves in accordance with the Board of Directors’ proposals and that the Board of Directors subsequently resolves on the Rights Issue, the record date for the Rights Issue will be 3 December 2026, and the subscription period will run from and including 7 December 2026 up to and including 21 December 2026.
  
  
  
  
• The Company intends to publish an information document prepared in accordance with Article 1.4 db and Annex IX of the Prospectus Regulation (EU) 2017/1129 regarding the Rights Issue on or around 2 December 2026 (the “Information Document”).

Background and reason for the Rights Issue

Minesto is a marine energy technology company with the mission to minimise the global carbon footprint of the energy industry by enabling commercial power production from the ocean. Minesto’s patented Dragon technology is a subsea power plant that “flies” in the tidal stream, which allows it to generate electricity cost efficiently in areas with low-flow tidal streams and ocean currents, where conventional stationary tidal turbines are not commercially viable. This significantly expands the addressable market for tidal energy.

Since 2020, Minesto has deployed, operated and serviced Dragon tidal power plants under real ocean conditions in Vestmannasund, Faroe Islands, where the power plants have delivered electricity to the Faroese grid operated by the utility SEV. The Company’s utility-scale Dragon 12 power plant, with a rated capacity of 1.2 MW, has completed an extended period of operation, and the Dragon 4 power plant has been upgraded to increase energy production with unchanged hardware costs. Minesto recently completed a full service intervention of a Dragon 4 power plant within 48 hours, validating the Company’s modular service concept, which is designed to deliver high availability and low operating costs without reliance on sophisticated and expensive offshore infrastructure.

Building on this operational track record, Minesto is now taking the step towards commercial deployment. The Company’s first commercial arrays are intended to be Hestfjord in the Faroe Islands and Euro Dragon Farm in Ireland. Hestfjord is intended to become the world’s largest tidal energy array, with a planned phased build-out starting with a first phase of 10 MW and a potential total capacity of up to 200 MW. In parallel, Minesto is leading a consortium, partly funded by the Swedish Energy Agency, which is constructing a tidal energy microgrid with integrated battery storage in the Faroe Islands, designed to provide baseload power to off-grid and island communities. The microgrid project forms the basis for further market entry projects, with non-grid-connected islands as the first targets for commercial deployment.

Internationally, Minesto is pursuing a partner-led project development model, in which the Company supports local site developers and utilities with technology and feasibility input. In addition to the Faroe Islands, Minesto is driving active site development in Wales, and has been selected for the European Investment Bank’s (EIB) project development assistance programme for a 10 MW Dragon farm in EU waters. In October 2026, Minesto was selected for a grant of EUR 20.2 million from the EU Innovation Fund for the proposed Euro Dragon Farm, a tidal energy array of up to 10 MW in Irish waters and the first Dragon farm in the EU. The grant corresponds to 60 percent of the project investment, and grant agreement preparation with the European Climate, Infrastructure and Environment Executive Agency (CINEA) has been initiated, with the grant agreement expected to be finalised during the first quarter of 2027. Minesto is also engaged in market development in, among others, Iceland and Taiwan.

Given the capital required to execute the Company’s commercial and technology development plans, Minesto assesses that its existing working capital is not sufficient to cover the Company’s capital needs. To ensure continued progress in accordance with the Company’s business plan and strategy, Minesto therefore intends to resolve to carry out the Rights Issue.

Provided that the Authorisation is adopted by the Extraordinary General Meeting and that the Board of Directors subsequently resolves on the Rights Issue, upon full subscription in the Rights Issue, the Company will receive approximately SEK 130 million before issue costs. The net proceeds from the Rights Issue are intended to be used for the following purposes, in order of priority:

1. Advance the Company’s first commercial arrays, Hestfjord in the Faroe Islands and Euro Dragon Farm in Ireland, towards investment decision and secure project investments for these, including completion of permitting, detailed design and the formation of investment consortia for the projects.
   
   
   
   
2. Secure further market entry projects building on the Faroese microgrid project currently under construction.
   
   
   
   
3. Implement Dragon technology advancements for scale-up, including continued upgrades of the Dragon Class systems for commercial customer deliveries.
   
   
   
   
4. Support partner-led project development and provide match funding for grant-funded, market-enabling projects across the Faroese and international pipeline, including Wales.
   
   
   
   
5. Working capital for general corporate purposes.

Terms of the Rights Issue

The Board of Directors has today resolved on an intention to carry out the Rights Issue. The Board of Directors intends to formally resolve on the Rights Issue on 25 November 2026, by virtue of the Authorisation proposed to be resolved upon by the Extraordinary General Meeting on 23 November 2026. Through the Rights Issue, Minesto may receive issue proceeds of approximately SEK 130 million before issue costs. Those who are registered as shareholders in the Company on the record date 3 December 2026 are entitled to subscribe for shares with preferential rights.

Final terms of the Rights Issue, including the subscription price, the subscription ratio, the increase of the share capital and the number of shares to be issued, are intended to be resolved by the Board of Directors on 25 November 2026, by virtue of the Authorisation, and published on the same day. The subscription price per share in the Rights Issue will be set at a discount of approximately 30 percent to TERP (theoretical share price after separation of subscription rights), based on the volume-weighted average price of the Company’s share on Nasdaq First North Growth Market during the ten (10) trading days immediately preceding the Board of Directors’ resolution on the Rights Issue, however the subscription price shall in no event be lower than the quota value of the Company’s share.

Subscription of shares with or without subscription rights shall be made during the period from and including 7 December 2026 up to and including 21 December 2026. Subscription rights that are not exercised during the subscription period will become invalid and lose their value. Trading in subscription rights takes place on Nasdaq First North Growth Market during the period from and including 7 December 2026 up to and including 16 December 2026 and trading in BTA (paid subscribed shares) during the period from and including 7 December 2026 until the Rights Issue has been registered with the Swedish Companies Registration Office, which is expected to take place around week 2, 2027.

If not all shares are subscribed for by exercise of subscription rights, allotment of the remaining shares shall be made within the highest amount of the Rights Issue: (i) firstly to those who have subscribed for shares without rights, but have also placed a concomitant subscription with rights, regardless if the subscriber was a shareholder on the record date of the Rights Issue or not, and in the case of oversubscription, pro rata to the number of shares subscribed for with rights, (ii) secondly to those who have subscribed for shares without rights, and in the case of oversubscription, pro rata to the number of shares subscribed for in the application, (iii) thirdly, allocation of any remaining shares shall be made to those who have provided guarantee undertakings regarding the subscription of shares, in accordance with each guarantor’s commitment. To the extent that allotment in any section above cannot be done pro rata, allotment shall be determined by drawing of lots.

Subscription undertakings and guarantee commitment

The Company has received subscription undertakings from the Company’s largest shareholder Corespring, amounting to SEK 10 million, corresponding to approximately 8 percent of the Rights Issue. In addition, all shareholding members of the Company’s management, including the Company’s CEO Martin Edlund, participate in the Rights Issue and have together undertaken to subscribe for shares amounting to approximately SEK 0.5 million in total, which exceeds their combined pro rata share of the Rights Issue. In total, the subscription undertakings amount to approximately SEK 10.5 million, corresponding to approximately 8 percent of the Rights Issue. No compensation will be paid for subscription undertakings.

In addition to the subscription undertakings, the Company has entered into a bottom guarantee commitment of a total of approximately SEK 67.5 million with Vator, which has the required authorisation to act as guarantor. The bottom guarantee commitment covers subscriptions in the Rights Issue up to approximately SEK 78 million, corresponding to approximately 60 percent of the Rights Issue. A guarantee compensation of 10 percent of the guaranteed amount is payable in cash, corresponding to a total of approximately SEK 6.75 million, or 14 percent of the guaranteed amount should the guarantor elect to receive compensation in the form of newly issued shares in the Company, with the same terms and conditions as for shares in the Rights Issue, including the subscription price set in the Rights Issue. In addition, the guarantor will receive warrants free of charge (the “Guarantee Warrants”). The Guarantee Warrants will not be admitted to trading and will have a term of five (5) years, during which they may be exercised at any time, at an exercise price corresponding to 140 percent of the subscription price in the Rights Issue. The number of Guarantee Warrants shall correspond to a dilution of approximately 5 percent at full exercise, and the Guarantee Warrants will be subject to customary anti-dilution provisions. Vator has in turn entered into separate sub-underwriting agreements with several investors, including Fenja Capital, Tellus Equity and Exelity regarding the transfer of the shares that may be allocated within the framework of the guarantee commitment. Vator remains the Company’s counterparty under the guarantee agreement and is responsible towards the Company for the commitment being fulfilled, regardless of how these investors fulfil their commitments towards Vator. The guarantee compensation, including the Guarantee Warrants, is paid to Vator, which in turn compensates the investors pro rata to their respective sub-underwriting commitments. The structure means that shares allocated within the framework of the guarantee commitment may be transferred onwards in close connection with the allocation.

In total, the Rights Issue is covered by subscription undertakings and a bottom guarantee commitment amounting to approximately SEK 78 million, corresponding to approximately 60 percent of the Rights Issue. Neither the subscription undertakings nor the guarantee commitment are secured by bank guarantees, blocked funds, pledges or similar arrangements.

The authorisation proposed to be resolved upon by the Extraordinary General Meeting on 23 November 2026 shall also cover the issue of shares to the guarantor, should the guarantor elect to receive guarantee compensation in the form of newly issued shares, as well as the issue of the Guarantee Warrants.

Preliminary time plan for the Rights Issue

Lock-up agreements

In connection with the Rights Issue, all shareholding members of the Board of Directors and management in Minesto have undertaken towards APREA Partners AB, subject to customary exceptions, not to sell or carry out other transactions with a similar effect as a sale unless, in each individual case, first having obtained written approval from APREA Partners AB. Decisions to give such written consent are resolved upon by APREA Partners AB and an assessment is made in each individual case. Consent may depend on both individual and business reasons. The lock-up undertakings only cover the shares held prior to the Rights Issue and the lock-up period lasts for 180 days after the announcement of the Rights Issue.

Extraordinary General Meeting and resolution process

The Board of Directors has today resolved to convene an Extraordinary General Meeting to be held on 23 November 2026. The Board of Directors proposes that the Extraordinary General Meeting resolves to amend the Articles of Association regarding the ranges for the share capital and number of shares and to adopt a new authorisation for the Board of Directors to resolve on issues of shares and warrants. The Authorisation shall cover the Rights Issue, any issue of shares to the guarantor should the guarantor elect to receive guarantee compensation in the form of newly issued shares, and the issue of the Guarantee Warrants. The new authorisation is intended to be registered with the Swedish Companies Registration Office no later than 25 November 2026, whereupon the Board of Directors intends to formally resolve on the Rights Issue on 25 November 2026 by virtue of the authorisation. Notice of the Extraordinary General Meeting will be announced in a separate press release.

Information Document

Full terms and conditions for the Rights Issue, as well as other information about the Company and information about subscription undertakings, the guarantee commitment and lock-up agreements, will be presented in the Information Document that the Company is expected to publish on or around 2 December 2026. The Information Document will be prepared in accordance with Article 1.4 db and Annex IX of the Prospectus Regulation and will be filed with the Swedish Financial Supervisory Authority. The Information Document is not a prospectus and will not be reviewed or approved by the Swedish Financial Supervisory Authority.

Advisers

APREA Partners AB acts as financial adviser and MAQS Advokatbyrå AB acts as legal adviser to Minesto in connection with the Rights Issue. Eminova Fondkommission AB acts as issuing agent in connection with the Rights Issue.

Contact

Cecilia Sernhage, Chief Communications Officer

+46 (0)735 23 71 58

ir@minesto.com

The information in this press release is such that Minesto AB (publ) shall announce publicly according to the EU Regulation No 596/2014 on market abuse (MAR). The information was submitted for publication, through the agency of the contact person set out above, at 21:14 CEST on 21 October 2026.

About Minesto

Minesto is a leading marine energy technology company with the mission to minimise the global carbon footprint of the energy industry by enabling commercial power production from the ocean.

Minesto’s award winning and patented product is the only verified marine power plant that operates cost efficiently in areas with low-flow tidal streams and ocean currents.

Minesto was founded in 2007 and has operations in Sweden, the Faroe Islands, Wales, and Taiwan. Major shareholder is Corespring New Technology. The Minesto share (MINEST) is traded on Nasdaq First North Growth Market. Certified Adviser is G&W Fondkommission.

Read more about Minesto at www.minesto.com

Press images and other media material is available for download via bit.ly/Minesto_media.

Financial information in English, including reports, prospectuses, and company descriptions, is available at www.minesto.com/investors.

IMPORTANT INFORMATION

Publication, release, or distribution of this press release may in certain jurisdictions be subject to legal restrictions and persons in the jurisdictions where this press release has been made public or distributed should inform themselves of and follow such legal restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of an offer, to acquire or subscribe for any securities in Minesto in any jurisdiction, neither from Minesto nor from anyone else.

This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 (the “Prospectus Regulation“) and has not been approved by any regulatory authority in any jurisdiction. No prospectus has been or will be prepared in connection with the Rights Issue. The Company will prepare and publish an information document in the form provided for in Article 1.4 db and Annex IX of the Prospectus Regulation prior to the commencement of the subscription period in the Rights Issue. Within the European Economic Area (“EEA“), no public offering of shares is made in member states other than Sweden. In any other EEA Member State, this communication is only addressed to and is only directed at “qualified investors” in that Member State within the meaning of the Prospectus Regulation.

This press release does not identify, or purport to identify, risks (direct or indirect) that may be associated with an investment in the Company. The information contained in this announcement is for background purposes for the Rights Issue only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness.

This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the “Securities Act“), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, within or into the United States, Australia, Belarus, Canada, Hong Kong, Japan, New Zealand, Russia, Singapore, South Africa, South Korea, Switzerland, or in any other jurisdiction where such announcement, publication or distribution of the information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.

In the United Kingdom, this press release may only be distributed and is only directed at (i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotion Order” as amended), (ii) persons falling within Article 49 (2) (a) to (d) (“high net worth companies;  unincorporated associations etc.”) of the Financial Promotion Order, (iii) persons that are outside the United Kingdom, or (iv) are persons to whom an invitation or incentive to engage in investment activities (within the meaning of Section 21 of the Financial Services and Markets Act 2000 (“FSMA”)) in connection with the issue or sale of securities (all such persons together being referred to as “relevant persons”). This press release is only directed at relevant persons and persons who are not relevant persons must not act on or rely on the information contained in this press release. Any investment or investment activity to which this communication relates is only possible for relevant persons and will only be pursued with relevant persons.

Forward-looking statements

This press release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. 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. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertakes to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is required by law or Nasdaq First North Growth Market rule book for issuers.

Information to distributors

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended (“MiFID II“); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the “MiFID II Product Governance Requirements“), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any “manufacturer” (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the shares have been subject to a product approval process, which has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the “Target Market Assessment“).

Notwithstanding the Target Market Assessment, Distributors should note that: the price of the shares in the Company may decline and investors could lose all or part of their investment; the shares in the Company offer no guaranteed income and no capital protection; and an investment in the shares in the Company is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Rights Issue.

For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares in the Company.

Each distributor is responsible for undertaking its own Target Market Assessment in respect of the shares in the Company and determining appropriate distribution channels.

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