Seamless Distribution Systems AB raises SEK 11.8 million through a directed share issue

The Board of Directors of Seamless Distribution Systems AB (publ) ("SDS" or the "Company") has today, based on the authorization granted by the Annual General Meeting on 28 May 2025, resolved to carry out a directed cash issue of shares of SEK 11.8 million and a set-off issue of SEK 2.7 million, corresponding to a total of SEK 14.5 million, to the largest shareholders and a few creditors. The subscription price in the two issues was set at SEK 5.95 per share, which corresponds to the share's volume-weighted average price for a period of thirty (30) trading days (the period 23 May 2025 to 8 July 2025). The purpose of the directed share issue is to strengthen the company's balance sheet through offsetting of debt and, above all, to create the opportunity for faster implementation of the company's very ambitious savings program to significantly strengthen profitability.

The transaction in brief

A directed share issue with deviation from the shareholders' preferential rights, according to this resolution, is, in the opinion of the Board of Directors, advantageous for the company and its shareholders as a necessary strengthening of the company's balance sheet and financial position is carried out in a cost- and time-efficient manner. Overall, the issue contributes to creating value for all the company's shareholders.

The subscription price in the two issues was set at SEK 5.95 per share, which corresponds to the share's volume-weighted average price for a period of thirty (30) trading days (the period 23 May 2025 to 8 July 2025). This will mean a dilution of 12.77%. The number of shares will increase by 2,431,351, corresponding to an increase in the share capital of SEK 243,135.10. The total number of shares after the issue will be 21,467,695 shares and the share capital will amount to SEK 2,146,769.50 after registration with the Swedish Companies Registration Office. The larger shareholders in SDS and a smaller number of creditors are entitled to subscribe. Subscription will be made through payment of the newly issued shares and shall take place no later than Wednesday, July 16, 2025.

Background and use of net proceeds

It is the Board's assessment that a directed share issue that strengthens the company's liquidity and reduces its debt, enables the ongoing optimization measures previously presented, and creates room for continued focus on delivering profitability within 6-9 months. The capital injection will be used to accelerate measures that significantly reduce the company's operating costs from SEK 176 million on a full-year basis (Q1 2025 multiplied by four) to SEK 110 million on a full-year basis (Q1 2026 multiplied by four). After the cost savings have been implemented, the company's operational and financial costs will be covered by recurring support and license revenues, which means that all new sales will greatly improve the company's profit margin.

This information is information that Seamless Distribution Systems AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 10:00 CET on July 11, 2025.

For more information, please contact:

Jens Ålander

Chief Financial Officer

+46 73 095 8269

[email protected]

About SDS

SDS is a Swedish international software company specializing in mobile payment services for mobile operators, distributors, retailers and consumers. SDS ensures that telecom operators can sell talk time, data and ancillary services where SDS products and services handle up to 90% of the telecom operator's sales. Today, SDS has implemented solutions in Fintech, advanced analytics and Retail Value Management and where these products have succeeded, they are transformed into so-called SaaS solutions.

SDS has approximately 267 employees in Sweden, France, Belgium, Romania, South Africa, Ghana, Nigeria, the United Arab Emirates, Pakistan and India. SDS handles more than 15 billion transactions worth over $14 billion annually. Through over 3 million monthly active retailers of digital products, more than 1100 million consumers are indirectly served globally.

SDS's share is listed on Nordic SME on the Nordic Growth Market.