Scandinavian Enviro Systems has resolved on a new directed issue of shares and warrants to Alumni Capital Limited under its existing equity-based financing agreement, raising approximately SEK 0.75 million before transaction costs. The tire recycling technology company will issue 10 million new shares at SEK 0.07479 per share together with 520,731 warrants issued free of charge. The financing follows a drawdown request under the agreement originally signed with Alumni Capital on May 22, 2026 and later amended on August 26 and September 2. Enviro said the capital is required to support its ongoing company reorganization and that a directed issue is more time- and cost-efficient than a conventional rights issue under the company’s current circumstances. The transaction will dilute existing shareholders by approximately 0.79%, with a further potential dilution of about 0.04% if all newly issued warrants are exercised.

Enviro issues 10 million new shares

The board resolved on October 6, 2026 to issue 10 million shares to Alumni Capital at a subscription price of SEK 0.07479 per share. The decision was made under authorization granted by Enviro’s annual general meeting on June 23, 2026.

The subscription price corresponds to 90% of the lowest daily volume-weighted average share price during the five trading days preceding the closing date of the drawdown. Enviro said the pricing mechanism follows the terms already established in its financing agreement with Alumni Capital.

Issue raises approximately SEK 0.75 million

The share issue will provide Enviro with approximately SEK 0.75 million before transaction costs. The company is using the existing equity-based investment facility as part of financing arrangements supporting its ongoing reorganization.

Enviro entered the original agreement with Alumni Capital in May 2026 and subsequently amended its terms twice during August and September as the company continued restructuring its finances.

Alumni Capital also receives 520,731 warrants

Alongside the shares, Enviro will issue 520,731 warrants to Alumni Capital at no cost. Each warrant gives the holder the right to subscribe for one additional Enviro share at SEK 0.22.

The warrants can be exercised from their registration with the Swedish Companies Registration Office until May 22, 2030. The exercise price corresponds to 120% of the volume-weighted average share price on May 21, 2026, the trading day immediately before the original financing agreement was signed.

The warrants are subject to customary recalculation provisions and are not intended to be listed for trading on any marketplace.

Financing supports ongoing company reorganization

Enviro said the reason for departing from existing shareholders’ preferential rights is to secure financing required for the company reorganization in a timely and cost-efficient manner.

The board considered the possibility of conducting a rights issue but concluded that this would likely take longer, involve higher costs and execution risk, and potentially require significant underwriting commitments. The company also said prevailing market conditions and Enviro’s current situation could have required a lower subscription price in a rights issue.

Board says directed issue is preferable to rights offering

After considering the alternatives, Enviro’s board concluded that drawing capital under the existing Alumni Capital agreement was more advantageous for both the company and its shareholders than initiating a separate rights issue.

The board therefore determined that the reasons for conducting a directed issue outweighed the general principle that new shares should normally be offered to existing shareholders with preferential rights.

Share count rises to 1.268 billion

Following completion of the issue, the number of shares in Scandinavian Enviro Systems will increase from 1,257,734,170 to 1,267,734,170.

The 10 million newly issued shares correspond to dilution of approximately 0.79% of the company’s shares and voting rights. If all 520,731 warrants issued in the transaction are exercised, the share count would increase by a further 520,731 and create additional dilution of approximately 0.04%.

New shares expected to trade on Nasdaq First North

The newly issued shares are expected to be admitted to trading on Nasdaq First North Growth Market after registration with the Swedish Companies Registration Office and Euroclear Sweden. The warrants themselves are not intended to be listed.

Enviro said any additional share or warrant issues carried out under the Alumni Capital agreement will be announced separately if and when further drawdowns occur.

Financing remains tied to Enviro’s restructuring process

The transaction is another step in Enviro’s broader effort to finance its ongoing company reorganization. The company has been working during 2026 on a restructuring plan intended to stabilize its financial position while preserving the commercial development of its patented tire recycling technology.

Enviro develops technology for recovering valuable raw materials from end-of-life products, including tires. The process is designed to produce recovered carbon black and other secondary raw materials that can be returned to industrial supply chains.

Recovered carbon black remains central to Enviro’s technology strategy

Enviro says production of new tires using carbon black recovered with its technology can reduce carbon dioxide emissions by up to 93% compared with virgin carbon black. The figure represents the company’s own stated comparison for its recycling technology and recovered carbon black.

While the latest announcement concerns corporate financing rather than new production capacity, access to restructuring capital remains important for Enviro’s ability to continue developing and commercializing its tire recycling technology and recovered carbon black business.

Original announcement by Scandinavian Enviro Systems.

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