Kitron — Capital/Financing Update 2021

Dec 22, 2021

Kitron ASA - Contemplated private placement

Kitron ASA - Contemplated private placement

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UNLAWFUL

(22 December 2021) Kitron ASA (OSE: KIT) ("Kitron" or the "Company") announces

an intention to carry out a private placement (the "Private Placement") by

issuing up to approx. 17.9 million new shares (the "New Shares"). The final size

of the Private Placement and the number of New Shares to be issued will be

resolved by the Board of Directors of the Company (the "Board") following a book

building process, within the current authorisation granted by the Annual General

Meeting on 21 April 2021. SpareBank 1 Markets AS is acting as sole bookrunner

(the "Sole Bookrunner") in connection with the Private Placement.

The net proceeds of the Private Placement will be used to partly finance the

acquisition of BB Electronics A/S as announced by Kitron on 20 December 2021 as

well as general corporate purposes in line with Kitron's communicated

strategies.

The Private Placement will be directed towards Norwegian and international

institutional investors, in each case subject to and in compliance with

applicable exemptions from relevant prospectus or registration requirements.

The subscription price and allocation of the New Shares in the Private Placement

will be determined through an accelerated book building process. The book

building period commences today at 16:30 CET and will close at 08:00 CET on 23

December 2021. The book building may, at the discretion of the Company and the

Sole Bookrunner, close earlier or later and may be cancelled at any time and

consequently, the Company may refrain from completing the Private Placement. If

the book building is shortened or extended, any other dates referred to herein

may be amended accordingly. The Company will announce the final number of New

Shares placed and the final subscription price in the Private Placement (the

"Subscription Price") in a stock exchange announcement expected to be published

before the opening of trading on the Oslo Stock Exchange tomorrow, 23 December

2021. Completion of the Private Placement is subject to final approval by the

Company's Board.

The minimum subscription and allocation amount in the Private Placement will be

the NOK equivalent of EUR 100,000, provided that the Company may, at its sole

discretion, allocate an amount below EUR 100,000 to the extent applicable

exemptions from the prospectus requirement pursuant to applicable regulations,

including Regulation (EU) 2017/1129 and ancillary regulations, are available.

Notification of allotment and payment instructions is expected to be issued to

the applicants on or about 23 December 2021 through a notification to be issued

by the Sole Bookrunner. The allocation will be determined at the end of the book

building period and final allocation will be made at the Board of Directors'

sole discretion, following advice from the Sole Bookrunner.

The New Shares allocated in the Private Placement are expected to be settled

through a delivery versus payment transaction. The New Shares will be settled

with existing and unencumbered shares in the Company that are already listed on

the Oslo Stock Exchange to be lent from Varner Equities AS, VJ Invest AS and

Velven Gård AS (collectively, the "Share Lenders") by the Sole Bookrunner (the

"Share Loan") pursuant to a share lending agreement (the "Share Lending

Agreement") entered into between the Sole Bookrunner, the Company and the Share

Lenders, and settlement is subject to delivery to the Sole Bookrunner of

borrowed shares under the Share Lending Agreement. The New Shares will be

tradable from allocation. The registration of the share capital increase in the

Norwegian Register of Business Enterprises (the "NRBE") is expected to be on or

about 24 December 2021.

The Board has considered alternative structures for the raising of new equity.

Following careful considerations, the Board is of the view that it will be in

the common interest of the Company and its shareholders to raise equity through

a private placement setting aside the pre-emptive rights of the shareholders. By

structuring the transaction as a private placement, the Company will be in a

position to raise capital in an efficient manner, with a lower discount to the

current trading price and with significantly lower risks compared to a rights

issue. In addition, the Private Placement is subject to marketing through a pre-

sounding and a publicly announced book building process. By this, a market based

subscription price will be achieved.

The Company may consider to conduct a subsequent share offering of new shares

(the "Subsequent Offering") at the same price as the final Subscription Price,

subject to (i) completion of the Private Placement, (ii) the Board being granted

an authorisation to this effect by an extraordinary general meeting and (iii)

certain other conditions. If carried out, the size and structure of the

Subsequent Offering shall be in line with market practice. Shareholders being

allocated shares in the Private Placement will not be eligible to participate in

a Subsequent Offering. The Company reserves the right in its sole discretion to

not conduct or cancel the Subsequent Offering.

The Company's latest company update presentation is available at

https://kitron.com/.

Advokatfirmaet Selmer AS is acting as legal advisor to Kitron in connection with

the Private Placement.

For further information, please contact:

Peter Nilsson, President and CEO, tel. +47 94 84 08 50

Cathrin Nylander, CFO, tel: +47 900 43 284 E-mail: investorrelations@kitron.com

Kitron is a leading Scandinavian electronics manufacturing services company for

the Connectivity, Electrification, Industry, Medical devices and

Defence/Aerospace sectors. The company is located in Norway, Sweden, Lithuania,

Germany, Poland, China and the United States. Kitron had revenues of about NOK

4.0 billion in 2020 and has about 1 800 employees. www.kitron.com

(http://www.kitron.com)

Inside information

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to section 5-12 the Norwegian Securities Trading Act. This stock exchange

announcement was published by Cathrin Nylander, Chief Financial Officer at

Kitron ASA on 22 December 2021 at 16:30 CET on behalf of the Company.

Important Notices

This announcement is not and does not form a part of any offer to sell, or a

solicitation of an offer to purchase, any securities of the Company. The

distribution of this announcement and other information may be restricted by law

in certain jurisdictions. Copies of this announcement are not being made and may

not be distributed or sent into any jurisdiction in which such distribution

would be unlawful or would require registration or other measures. Persons into

whose possession this announcement or such other information should come are

required to inform themselves about and to observe any such restrictions.

The securities referred to in this announcement have not been and will not be

registered under the U.S. Securities Act of 1933, as amended (the "Securities

Act"), and accordingly may not be offered or sold in the United States absent

registration or an applicable exemption from the registration requirements of

the Securities Act and in accordance with applicable U.S. state securities laws.

The Company does not intend to register any part of the offering or their

securities in the United States or to conduct a public offering of securities in

the United States. Any sale in the United States of the securities mentioned in

this announcement will be made solely to "qualified institutional buyers" as

defined in Rule 144A under the Securities Act.

In any 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, i.e., only to investors who can receive the offer without

an approved prospectus in such EEA Member State. The expression "Prospectus

Regulation" means Regulation 2017/1129 as amended together with any applicable

implementing measures in any Member State.

This communication is only being distributed to and is only directed at persons

in the United Kingdom that are (i) investment professionals falling within

Article 19(5) of the Financial Services and Markets Act 2000 (Financial

Promotion) Order 2005, as amended (the "Order") or (ii) high net worth entities,

and other persons to whom this announcement may lawfully be communicated,

falling within Article 49(2)(a) to (d) of the Order (all such persons together

being referred to as "relevant persons"). This communication must not be acted

on or relied on by persons who are not relevant persons. Any investment or

investment activity to which this communication relates is available only for

relevant persons and will be engaged in only with relevant persons. Persons

distributing this communication must satisfy themselves that it is lawful to do

so.

Matters discussed in this announcement may constitute forward-looking

statements. Forward-looking statements are statements that are not historical

facts and may be identified by words such as "believe", "expect", "anticipate",

"strategy", "intends", "estimate", "will", "may", "continue", "should" and

similar expressions. The forward-looking statements in this release are based

upon various assumptions, many of which are based, in turn, upon further

assumptions. Although the Company believes that these assumptions were

reasonable when made, these assumptions are inherently subject to significant

known and unknown risks, uncertainties, contingencies and other important

factors which are difficult or impossible to predict and are beyond its control.

Actual events may differ significantly from any anticipated development due to a

number of factors, including without limitation, changes in investment levels

and need for the Company's services, changes in the general economic, political

and market conditions in the markets in which the Company operate, the Company's

ability to attract, retain and motivate qualified personnel, changes in the

Company's ability to engage in commercially acceptable acquisitions and

strategic investments, and changes in laws and regulation and the potential

impact of legal proceedings and actions. 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 provide any guarantees that the

assumptions underlying the forward-looking statements in this announcement are

free from errors nor does it accept any responsibility for the future accuracy

of the opinions expressed in this announcement or any obligation to update or

revise the statements in this announcement to reflect subsequent events. You

should not place undue reliance on the forward-looking statements in this

document.

The information, opinions and forward-looking statements contained in this

announcement speak only as at its date, and are subject to change without

notice. The Company does not undertake any obligation 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 announcement.

Neither the Sole Bookrunners nor any of its respective affiliates makes any

representation as to the accuracy or completeness of this announcement and none

of them accepts any responsibility for the contents of this announcement or any

matters referred to herein.

This announcement is for information purposes only and is not to be relied upon

in substitution for the exercise of independent judgment. It is not intended as

investment advice and under no circumstances is it to be used or considered as

an offer to sell, or a solicitation of an offer to buy any securities or a

recommendation to buy or sell any securities in the Company. Neither the Sole

Bookrunner nor any of its respective affiliates accepts any liability arising

from the use of this announcement.