Hexicon AB entered into a development financing agreement of up to EUR 45 million with Glennmont Partners (Glennmont) as lender . Hexicon intends to use the proceeds to fund the development of its project pipeline and to carry out early repayment of Hexicon's outstanding convertible loans (the Convertible Loans). The facility will enable Hexicon to optimize value creation of its project pipeline and provide long-term financial flexibility.

The Agreement is a solution which provides for the specific needs of Hexicon as a growing developer, while providing Glennmont's institutional investors with a foothold in the critical and rapidly growing floating offshore wind sector. The Agreement in short: The loan, totaling up to EUR 45 million, is divided into the following uses: Up to EUR 35 million, to fund the development of Hexicon's project pipeline. Up to EUR 10 million, for general corporate purposes and fully repaying the outstanding Convertible Loans.

Use of proceeds: The main part of the facility will be used to fund the development of Hexicon's project portfolio, enabling Hexicon to maintain its position as a global leader in floating offshore wind and accelerate its next phase of development and expansion. Up to a maximum of EUR 35 million is available to fund the development of the projects: TwinHub, in the UK MunmuBaram, a project in South Korea under a JV with Shell. AvenHexicon, a pipeline in Italy under a JV with Avapa Energy.

Freja Offshore, a pipeline in Sweden under a JV with Mainstream Renewable Power, including Mareld Green Energy AB. Up to a maximum of EUR 10 million will be drawn down in a single tranche with the intention to repay the outstanding Convertible Loans at the next possible occasion in accordance with the terms of the Convertible Loans, which is 25 August 2023. Upon receival of the loan amount under this tranche, Hexicon will, in accordance with the terms of the Convertible Loans, send a notice on early repayment to each convertible holder recorded in the Company's central securities depository egister.

Any remaining amount will be used for general corporate purposes. Terms and conditions: The loan bears a fixed base interest rate (payable at sale events), with a provision for a balanced upside sharing should certain projects achieve valuations in line with targets. The loan is subject to the satisfaction of industry and customary conditions.

Full repayment at the maturity date 31 May 2029, with a possible extension. Possible repayment of loan, in part or in full at any time at the option of Hexicon. Hexicon Holding AB is the borrower under the Agreement with Hexicon AB as guarantor.

The loans are secured by the shares, including all property and all other rights deriving from the shares, in Hexicon Holding AB (which is the legal owner of Hexicon AB's interests in TwinHub (UK), AvenHexicon (IT), MunmuBaram (KR), Freja Offshore (SE) and Mareld Green Energy AB (SE)), pledged by Hexicon AB to Glennmont.