Exercise of over-allotment option and end of stabilization period

As announced in connection with the offering to acquire existing shares in LMK Group (the “Offering”) and the listing of the Company’s shares on Nasdaq First North Premier Growth Market, Pareto Securities, in its capacity as stabilization manager, may carry out transactions aimed at supporting the market price of the shares at levels above those which might otherwise prevail in the market.

Stabilization measures, which aim to support the market price of the shares, have been possible to conduct on Nasdaq First North Premier Growth Market, the OTC market or in other ways, at any time during the period starting on the first day of trading in the shares on Nasdaq First North Premier Growth Market and ending 30 calendar days thereafter. Pareto Securities has, however, not been required to undertake any stabilization and there was no assurance that stabilization would be undertaken. Stabilization, if undertaken, has been possible to discontinue at any time without prior notice. In no event could transactions have been effected at levels above the price in the Offering.

Pareto Securities has, in its capacity as stabilization manager, announced that stabilization measures have been taken in respect of 302,402 shares (in accordance with Article 5(4) of the EU Market Abuse Regulation and the Commission Delegated Regulation (EU) 2016/1052) on Nasdaq First North Premier Growth Market. The stabilization period regarding the Offering has now ended and no further stabilization transactions will be effected. Below is a summary of the stabilization transactions which have been undertaken during the stabilization period. The contact person at Pareto Securities is Marcus Wagner (tel: +46 (0) 8 402 50 00).

In order to cover any over-allotment in relation with the Offering, the selling shareholders[1] committed, upon request of Pareto Securities, to sell up to 943,396 additional shares in the Company corresponding to up to 15 per cent of the total number of shares in the Offering (the “Over-allotment Option”) at a price corresponding to the price in the Offering, i.e. SEK 79.50 per share. The Over-allotment Option ccould be fully or partly exercised within 30 calendar days from the first day of trading of the Company’s shares on Nasdaq First North Premier Growth Market. Since Pareto Securities has undertaken stabilization transactions in respect of 320,402 shares in the Company, Pareto Securities has today notified that the Over-allotment Option has been exercised in respect of 622,994 shares.

Stabilization information

Stabilization transactions

For further information, please contact:
Walker Kinman, CEO, LMK Group
Telephone (SWE): +46 707 22 65 13
E-mail: walker.kinman@linasmatkasse.se

Erik Bergman, CFO, LMK Group
Telephone (SWE): +46 707 74 49 73
E-mail: erik.bergman@linasmatkasse.se

LMK Group AB (publ)
Org.nr. 559021-1263
Stormbyvägen 2, 163 55 Spånga, Sverige
www.lmkgroup.se

FNCA Sweden AB is the Company’s Certified Adviser, +46 (0) 8 528 00 399, info@fnca.se

This information is information that LMK Group AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation 596/2014. The information in this press release has been made public through the agency of the responsible person set out above for publication at the time stated the Company’s news distributor MFN at the publication of this press release.

About LMK Group AB (publ)
LMK Group provides fresh, healthy, flexible and adaptable meal kit solutions to around 115,000 active and 405,000[2] registered customers in Sweden, Norway and Denmark. The Group conducts its operations under four brands: Linas Matkasse (Sweden), Godtlevert and Adams Matkasse (Norway), and RetNemt Måltidskasser (Denmark). The Group’s vision is that Scandinavian households should be able to take the time to prepare and eat good food together with their family and friends, without having to get stressed, plan, shop or carry home bags of groceries. LMK Group was founded, through the incorporation of the current subsidiary Carolinas Matkasse AB, in 2008, and has since established itself in Scandinavia, where it has a total of 282 full-time employees and is active in three countries: Sweden with 117 full-time employees, Norway with 112 full-time employees and Denmark with 53 full-time employees.

LMK Group’s main product offering, meal kits, are delivered directly to the customer’s front door at convenient times and contain what the customer requires to prepare inspirational meals with carefully selected local and sustainable ingredients. Strengthened by its strong and complex logistics chain, with efficient processes that are supported by the Group’s innovative technology, user-friendly website and mobile app, the underlying business has experienced strong growth. In 2020, the Group’s net sales amounted to approximately SEK 1.2 billion, which is equivalent to a net sales growth of 12.1 percent (17.4 percent adjusted for foreign exchange differences), with an EBIT margin of approximately 7.5 percent.

[1] The selling shareholders consist indirectly of Herkules Capital, PopSpinach AB (Niklas Aronsson, co-founder), Rocky Beans AB (Carolina Gebäck, co-founder) and Creandum Advisor as well as a larger group of smaller shareholders.
[2] As of 31 December 2020.

Important information
The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions and the recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such legal restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in LMK Group in any jurisdiction, neither from LMK Group nor from someone else.

This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the “Securities Act“), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, within or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, Switzerland or in any other jurisdiction where such announcement, publication or distribution of the information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.

This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 (the “Prospectus Regulation“) and has not been approved by any regulatory authority in any jurisdiction. A prospectus has been prepared in connection with the Offering and has been scrutinized and approved by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) which is the national competent authority in Sweden with regard to the Prospectus Regulation.

In the United Kingdom, this press release and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, “qualified investors” (within the meaning of the United Kingdom version of the EU Prospectus Regulation (2017/1129/ EU) which is part of United Kingdom law by virtue of the European Union (Withdrawal) Act 2018) who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order“); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons“). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.

This press release does not identify or suggest, or purport to identify or suggest, the risks (direct or indirect) that may be associated with an investment in the new shares. Any investment decision to acquire or subscribe for shares in connection with the Offering must be made on the basis of all publicly available information relating to the Company and the Company’s shares. Such information has not been independently verified by the Joint Global Coordinators. The Joint Global Coordinators is acting for the Company in connection with the transaction and no one else and will not be responsible to anyone other than the Company for providing the protections afforded to its clients nor for giving advice in relation to the transaction or any other matter referred to herein.

The information in this press release may not be forwarded or distributed to any other person and may not be reproduced at all. Any forwarding, distribution, reproduction or disclosure of this information in its entirety or in any part is prohibited. Failure to follow these instructions may result in a breach of the Securities Act or applicable laws in other jurisdictions.

This press release does not constitute an invitation to warrant, subscribe, or otherwise acquire or transfer any securities in any jurisdiction. This press release does not constitute a recommendation for any investors’ decisions regarding the Offering. Each investor or potential investor should conduct a self-examination, analysis and evaluation of the business and information described in this press release and any publicly available information. The price and value of the securities can decrease as well as increase. Achieved results do not provide guidance for future results. Neither the contents of the Company’s website nor any other website accessible through hyperlinks on the Company’s website are incorporated into or form part of this press release.

Forward-looking statements
This press release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s and the Group’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company and the Group operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq First North Premier Growth Market rule book for issuers.