Tecnotree Oyj announced that it will issue 300 compulsory convertible debenture notes at a price of €1,000 each for gross proceeds of €30,000,000 on April 18, 2023. The transaction will include participation from retuning investor Oy Hammarén & Co AB, and individual investors Markku Wilenius, and Padma Ravichander for overall commitments of 250 notes and €25,000,000. The notes will accrue a 0.01% per annum interest.

The notes are convertible into common shares of the company during the conversion period, starts from first anniversary of the issue date and ends on the fifth anniversary of the issue date. The conversion price will be the lower of (i) 5% less than 10 day moving average of the share price of the company on the Nasdaq Helsinki stock exchange from the date of request for conversion or the closing price of the shares on the Nasdaq Helsinki stock exchange as of the trading day immediately preceding the date of announcing the transaction. The notes will convert compulsorily into shares of company on the fifth anniversary of the issue date unless converted earlier voluntarily.

Additionally, each note holder will be given 100,000 warrants per each note to subscribe for shares. Each warrant shall entitle to one share of company with a strike price at €0.90 per share. The warrants will be valid for a term of 5 years.

The transaction is expected to close on May 3, 2023.