Scandinavian Enviro Systems has resolved on a directed issue of shares and warrants to Alumni Capital Limited under its existing financing arrangement, raising approximately SEK 2.5 million before transaction costs. The issue follows a drawdown request under the equity-based investment agreement entered into on May 22, 2026, and amended on August 26, 2026. Enviro will issue 22,222,222 new shares at a subscription price of SEK 0.11439 per share and 1,769,887 warrants to Alumni Capital. The company said the directed issue is intended to secure financing for its ongoing company reorganization in a time- and cost-efficient manner. The financing comes as Enviro continues efforts to stabilize its business, which is focused on patented tire recycling technology, recovered carbon black and the recovery of valuable raw materials from end-of-life tires.

Issue follows drawdown under Alumni Capital agreement

The directed issue is being carried out after Enviro requested a drawdown under its financing agreement with Alumni Capital. The original equity-based investment agreement was signed on May 22, 2026, and later amended on August 26, 2026, when the commitment amount was increased by SEK 30 million.

The subscription price of SEK 0.11439 per share corresponds to 90% of the lowest daily volume-weighted average price during the five trading days preceding the closing date of the drawdown. Enviro said the price was determined in accordance with the terms of the agreement.

Warrants issued free of charge

In addition to the new shares, Enviro has resolved to issue 1,769,887 warrants to Alumni Capital free of charge. Each warrant entitles the holder to subscribe for one new share in Enviro at a subscription price of SEK 0.22.

The warrants may be exercised from the date of registration with the Swedish Companies Registration Office until May 22, 2030. They are subject to customary recalculation terms and are not intended to be admitted to trading on any marketplace.

Technical adjustment changes warrant calculation

Enviro and Alumni Capital have also made a technical contractual adjustment concerning the calculation of the number of warrants issued in connection with each drawdown. Following the amendment to the financing arrangement, the proportion of warrants per Swedish krona drawn has increased relative to the amount drawn.

The maximum total number of warrants that may be issued under the arrangement remains unchanged at 80,000,000. After the technical adjustment, the maximum number of warrants that may be issued per drawdown is 3,829,419.

Board cites need for reorganization financing

Enviro’s board said the reason for deviating from shareholders’ preferential rights is to secure financing required for the company’s ongoing reorganization in a time- and cost-efficient manner. The board said it had considered a rights issue but concluded that the directed issue was more advantageous under the circumstances.

The company said a rights issue would be more time-consuming, involve additional costs and execution risk, and likely require underwriting commitments. The board also said a rights issue would probably need to be carried out at a lower subscription price, given recent market discount levels and Enviro’s situation.

Existing shareholders face dilution

Through the issue, the number of shares in Enviro will increase from 1,203,830,893 to 1,226,053,115. The issue of new shares corresponds to dilution of approximately 1.81% of the number of shares and votes in the company.

If all 1,769,887 newly issued warrants are exercised, the number of shares will increase by the same amount, resulting in additional dilution of approximately 0.14%. 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 AB.

Financing arrangement remains available for further drawdowns

Enviro said further information about the Alumni Capital agreement is available in earlier press releases from May 22, May 29 and August 26, 2026. The company said any further issues to Alumni Capital will be announced if and when they are carried out.

The directed issue adds short-term funding as Enviro continues its company reorganization and broader financing process. The company is seeking to maintain operations and develop its business around tire recycling, recovered carbon black and circular raw material recovery from end-of-life tires.

Enviro develops recovered materials from tires

Scandinavian Enviro Systems develops patented technology for recovering valuable raw materials from scrapped and end-of-life products, including tires. According to the company, using carbon black recovered with Enviro’s technology in new tires can reduce carbon dioxide emissions by up to 93% compared with virgin carbon black.

Enviro is headquartered in Gothenburg, Sweden, and was founded in 2001. The company is listed on Nasdaq First North Growth Market, with FNCA Sweden AB serving as its Certified Advisor.

Article source: https://www.envirosystems.se/.