Logistea

M&A Activity • Jun 18, 2021

Odd Molly signs letter of intent regarding acquisition of three properties in the Gothenburg area with an underlying property value of SEK 167 million and carries out a directed cash issue of SEK 39 million

Odd Molly International AB (publ) ("Odd Molly" or "the Company") has entered into an agreement with HanssonGruppen EBJ AB regarding the acquisition of in total three properties in the Gothenburg area with an underlying property value of approximately SEK 167 million ("The Acquisition"). Two of the properties will be acquired through so-called forward funding and are planned to be completed during the second half of 2022. After completion, the properties comprise a lettable area of a total of 11,400 square meters and are estimated to generate annual rental income of approximately SEK 10.4 million with an operating net of approximately SEK 9.9 million. All leases run with a lease period of 10–15 years.

The acquisition further contributes to strengthening our position as a challenger in the warehousing and logistics market. We are glad to carry out our first acquisitions in the Gothenburg region, in strategically good locations around Gothenburg next to the E6 and E20. We look forward to continuing our collaboration with HanssonGruppen/EBJ as a regional partner. At the same time, we are very happy that Bengt Kjell with his extensive experience participates in the direct cash issue and that Phoenix Insurance Company, as a very well-respected institutional investor, is increasing its ownership in Odd Molly as well, says Odd Molly's Chairman Patrik Tillman.

Two of the properties are acquired through so-called forward funding, where Odd Molly takes over the properties in connection with the start of construction and HanssonGruppen and EBJ Förvaltning carry out the projects. Production time is estimated at 12 months, with construction starting this autumn. The third property is an investment property with an average contract length of approximately 13 years. Final agreements are expected to be entered into between the parties no later than August 2021 and access to all three properties is expected to take place in the autumn of 2021. Financing takes place via primarily a new issue of ordinary shares and through bank loans and seller financing.

As part of financing The Acquisition, the Board of Odd Molly has decided to carry out a directed cash issue of a total of 2,166,667 Series A ordinary shares at a subscription price of SEK 18.00 to Bengt Kjell for a total of 500,000 shares and to a group of international investors led by the insurance company Phoenix Insurance Company of a total of 1,666,667 shares. Through the issue, the company will receive a total amount corresponding to a total of SEK 39 million before transaction costs.

We believe very much in Odd Molly as a strong player in the Swedish real estate market in the logistics and industry segment. We are glad to do three more deals with Odd

Molly and we are looking forward to being able to complete and eventually also hand over two extremely nice and newly built buildings to Odd Molly, say Stefan Hansson and Erik Björklund, the owners of HanssonGruppen EBJ AB.

For further information please contact:

Patrik Tillman, Chairman of the Board Odd Molly International AB (publ) +46 733 506 120 Philip Löfgren, CFO Odd Molly International AB (publ) + 46 705 911 545 Tobias Lövstedt, Head of Finance Odd Molly International AB (publ) +46 735 026 877

About Odd Molly International AB

Odd Molly is a Swedish company that conducts fashion operations under the Odd Molly and Hunkydory

brands, as well as a rapidly growing real estate business. At the end of March 2021, an agreement was entered

into with We aRe Spin Dye AB to sell the fashion business and the subsidiary Used By, given the approval of the

General Meeting. The transaction is expected to close during the second quarter and the shares received in

payment are intended to be distributed to Odd Molly's shareholders during the third quarter of 2021, after

approval from Nasdaq Stockholm and resolution at the Extraordinary General Meeting. Continuing operations

will then be real estate operations with a focus on warehousing and logistics properties. Odd Molly's share is

traded on Nasdaq Stockholm, small cap.

This information is information that Odd Molly International is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2021-06-18 08:30 CEST.

Attachments

Odd Molly signs letter of intent regarding acquisition of three properties in the Gothenburg area with an underlying property value of SEK 167 million and carries out a directed cash issue of SEK 39 million