Scandinavian Enviro Systems AB (Enviro) has resolved on a directed issue of 20,000,000 shares and 1,785,000 warrants to Alumni Capital Limited under an existing equity-based financing agreement. The tire recycling technology company said the issue will provide SEK 3.57 million before transaction costs and follows a drawdown request under the agreement entered into with Alumni Capital on May 22, 2026. Enviro said the financing is intended to support the company’s ongoing reorganization, which is focused on establishing a long-term sustainable capital structure while continuing work related to the recovery of valuable materials from end-of-life tires, including recovered carbon black.

Issue carried out under existing financing agreement

The directed share issue consists of 20,000,000 new shares at a subscription price of SEK 0.1785 per share. According to Enviro, the subscription price corresponds to 90% of the lowest daily volume-weighted average price during the five trading days before the closing date of the drawdown. The company said the price was determined in accordance with the terms of the equity-based investment agreement with Alumni Capital.

Warrants issued free of charge

In connection with the share issue, Enviro has also resolved on a directed issue of 1,785,000 warrants to Alumni Capital. The warrants are issued free of charge and each warrant gives the holder the right to subscribe for one new share in the company at a subscription price of SEK 0.22.

The subscription period for the warrants runs from the date of registration with the Swedish Companies Registration Office until May 22, 2030. The subscription price corresponds to 120% of the volume-weighted average price on May 21, 2026, the trading day before the agreement with Alumni Capital was entered into. Enviro said the warrants are subject to customary recalculation terms and are not intended to be admitted to trading on any marketplace.

Board cites reorganization financing needs

Enviro said the reason for deviating from shareholders’ preferential rights is to secure financing required to carry out the company’s ongoing reorganization in a time- and cost-efficient manner. The board of directors said it had considered the possibility of raising capital through a rights issue but assessed that a drawdown under the existing agreement is currently more advantageous for the company and shareholders.

The board said a rights issue would likely take more time, involve additional costs and create execution risk. It also said such a process would probably require underwriting commitments and could have needed to be carried out at a lower subscription price, given current market discount levels and the company’s situation.

Dilution expected from new shares and warrants

Following the issue, the number of shares in Enviro will increase from 1,117,994,435 to 1,137,994,435. If all 1,785,000 warrants are exercised, the number of shares will increase by an additional 1,785,000.

The new share issue results in dilution of approximately 1.757% of the number of shares and votes in Enviro. Full exercise of the newly issued warrants would result in additional dilution of approximately 0.157%.

Shares expected to trade after registration

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. Enviro said the warrants are not intended to be admitted to trading on any marketplace.

The company said information about any further issues to Alumni Capital will be announced if and when such issues are carried out. Further information about the agreement with Alumni Capital is available in Enviro’s previous press releases from May 22 and May 29, 2026.

Enviro develops tire recycling technology

Scandinavian Enviro Systems develops patented technology for recovering valuable raw materials from scrapped and end-of-life products, including tires. The company’s tire recycling process can recover materials such as recovered carbon black for use in new products and industrial applications. According to Enviro, the 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.

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 Certified Advisor.

Article source: Enviro.