Magnora ASA

M&A Activity • Mar 6, 2020

Magnora ASA Acquisition Update: Magnora enters the wind project development market

Magnora ASA Acquisition Update: Magnora enters the wind project development market

Oslo, Norway, 6 March 2020: MAGNORA ASA, a leading Norwegian royalty and license revenue company releases an acquisition update.

“Magnora enters the wind project development market through the acquisition of a 25% stake in the recently started Vindr Group.”

Magnora is pleased to announce its first step in the strategy to transform and diversify beyond its traditional license and royalty business through the acquisition of 25% of the “Vindr Group”, a 2019 Swedish/Norwegian company focused on early stage wind power opportunities.

Magnora has the option to acquire a further 25% of the company.

Magnora’s Executive Chairman Torstein Sanness said:

"With the partnership with “Vindr Group”, Magnora gains access to an independent development company with three senior executives that marks our first building block in our co-development strategy for small and medium sized wind parks in the Nordic region.”

“Vindr Group has a novel and efficient methodology that fits the market segments it targets. The Vindr team has a compelling business plan with clear growth ambitions supported by its team’s experience and approach. Vindr intends to develop a portfolio of projects and companies”, said Torstein Sanness.

“Our experience from working with very large-scale projects, gave us insights into the challenges of introducing wind power in non-developed areas or untouched areas of nature. We believe smaller scale wind-power is economically viable in a close to zero-subsidy market and can be located closer to infrastructure and developed land, e.g. agricultural landscape” said Jan-Olav Øderud, one of the founders of the Vindr Group.

“The Vindr model is to actively work with local stakeholders to ensure viable projects that go hand-in-hand with local interest. We want to team up with local investors and share the benefit of the projects” said Camilla Andersson also a founder of the Vindr Group.

Wind power in Vindr Group will be established with offices in Oslo, Norway and Malmö in Sweden.

Magnora intends to strengthen Vindr Group’s marketing and financing capabilities in full cooperation with the Vindr team.

The Vindr team has significant experience from Ørsted, Vestas, Multiconsult, PA Consulting and Hydro over the years from both onshore and offshore projects in addition to power purchasing agreements (PPAs).

Magnora’s advisor Haakon Alfstad is pleased to accept the opportunity to work with the Vindr Group as an Executive Chairman for Vindr Group. Alfstad will continue to work as an advisor for Magnora with a long-term engagement contract with the company. Magnora has retained the right to nominate one additional member to the board, who will initially also comprise of Jan-Olav Øderud, Camilla Andersson and one independent member to be named.

The investment in Vindr Group will not influence our dividend strategy/policy and our commitments in the Vindr Group are fully financed, says Torstein Sanness.

The maximum, total investment by Magnora is NOK 20,000,000, divided into NOK 10,000,000 which will be paid upon acquisition of the first 25%, and the full payment of the remaining NOK 10,000,000 remaining subject to several capital calls being issued by the Vindr board. Pursuant to the investment and shareholders' agreement agreed in connection with the transaction, Magnora nominees in the board must consent to the issue of capital calls and certain other board decisions.

Magnora will continue to invest in teams and projects that increase our ability to build a diversified asset light green investment portfolio.

About Magnora (OSE: MGN): Magnora ASA is a royalty and license company looking for profitable investment opportunities. The company is listed on the main list on Oslo Stock Exchange under the ticker MGN.

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For further information, please contact:

Erik Sneve, CEO, Magnora ASA

es@magnoraasa.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.