May 29, 2023

Interim Report January – March 2023

First quarter 2023

Net sales for the quarter amounted to MSEK 13 (18)
Gross for the quarter decreased to 74% (91%)
Operating loss decreased to MSEK -14 (-10)
Earnings per share before and after dilution decreased to SEK -0.12 (-0.04)
Events after the reporting period
- On April 5, Anoto announced that it is in late-stage discussions regarding a potential order of several hundred thousand pens. In order to finance a timely delivery of pens regarding the potential order and improve financial position, the Board of Anoto resolved to carry out a directed share issue of 20 million SEK and a rights issue amounting to in total approximately SEK 20 million. The rights issue is guaranteed to 50 per cent and both the directed issue and the rights issue was approved by an Extraordinary General Meeting.

Directed Issue

The Board of Anoto resolved on the issue of 50 million new ordinary shares with deviation from the shareholders preferential rights, raising proceeds of SEK 20 million before transaction related costs. The Directed Issue was subject to the approval by the EGM, which was held on 4 May 2023. The new shares were subscribed for by Beof Company Ltd., a Korean company affiliated with Mr. KC Kim., who was previously associated with AIITONE Co Ltd, the largest shareholder of Anoto. The subscription price was determined based on the closing price of the Company’s ordinary share on Nasdaq Stockholm on April 4, 2023 of SEK 0.4 per share, which meant that the subscription price corresponded to a premium of approximately 2.6 percent.

The new shares in the Directed Issue corresponds to approximately 15.1 percent of the total number of shares in the Company after dilution also including the new shares issued in the Rights Issue (see below).

Rights issue

The Board of Anoto resolved on a new issue of ordinary shares with preferential rights for the existing shareholders, raising proceeds of approximately SEK 20 million before transaction related costs. The Rights Issue was subject to the approval by the EGM, which was held on 4 May 2023.

In the Rights Issue, Anoto’s current shareholders will have a preferential right to subscribe for new shares in proportion to the number of shares held on the record date, which is expected to be 10 May 2023. The subscription price has been set to SEK 0.40 per share and the Rights Issue comprises approximately 50 million ordinary shares.

Shares which are subscribed for without preferential rights will be offered to current shareholders and other investors who have applied to subscribe for new shares without preferential rights. The subscription period is expected to run from 12 May 2023 to 6 June 2023 (Johannes, is this correct?). The new shares in the Rights Issue correspond to approximately 15.1 percent of the total number of shares in the Company after dilution also including the new shares issued in the Directed Issue.

Prospectus

Information regarding the listing of the shares in the Issues, as well as other information regarding the Company, will be provided in the prospectus that is planned to be published in May 2023.

On May 4, an EGM was held at which the Board’s resolutions on the Directed Issue and the Rights Issue mentioned above were approved. The full agenda and resolutions of the meeting can be found on: https://www.anoto.com/investors/corporate-governance/extraordinary-general-meeting/.
On May 24 the company announced that Anoto AB raised additional USD 1.7 million dollars on the sale of KAIT shares held by Anoto. The shares were placed mainly to European based Venture Capital companies and individual investors. This was done in line with Anoto board’s decision to make KAIT independent. As an independent company KAIT can raise financing by itself and reduce burden on Anoto. Making KAIT independent means deconsolidation (lowering Anoto ownership below 50%), which substantially reduces Anoto’s financial liabilities and improve earnings as KAIT’s monthly burn rate is having a major impact on Anoto’s earnings.

For further information, please contact:

Joonhee Won, CEO, Anoto Group AB

For more information about Anoto, please visit www.anoto.com or email ir@anoto.com

This information is information that Anoto Group 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, on 29 May 2023 at 08:00 CEST.

About Anoto Group

Anoto is a publicly held Swedish technology company known globally for innovation in the area of information-rich patterns and the optical recognition of those patterns. It is a leader in digital writing and drawing solutions, having historically used its 30proprietary technology to develop smartpens and the related software. These smartpens enrich the daily lives of millions of people around the world. Anoto currently has three main business lines: Livescribe retail, Enterprise Forms and OEM. Anoto also owns Knowledge AI, a leading AI based education solution company, as its majority-controlled subsidiary. Anoto is traded on the Small Cap list of Nasdaq Stockholm under ANOT.