FSport AB (publ)

The Board of Directors of FSport AB (publ) (”FSport” or the ”Company”) has today, April 29, 2024, resolved to propose that the Annual General Meeting on May 30, 2024, resolves to carry out a rights issue of a maximum of 133,751,922 shares (the ”Rights Issue”). A notice to the Annual General Meeting will be published through a separate press release. The subscription price in the Rights Issue is set at SEK 0.03 per share. If fully subscribed, this Rights Issue will provide the Company with approximately SEK 4 million before issue costs. The proceeds from the Rights Issue will primarily be used to finance the Company’s distribution and increase its commercial reach through strategic content expansion and product refinement.

Background and rationale
FSport AB is an innovative media and platform company with a Swedish gaming license. The Company delivers qualified gaming traffic to leading operators in Sweden and the USA and offers sports betting on its proprietary platform.

The global iGaming market continues to grow and is estimated to reach a market value of USD 153.57 billion by 2030. Sports betting is the largest category within iGaming. The wide range of live sports offers the opportunity to create engaging and interactive experiences and fulfills the need for targeted information around sports betting. These factors create broad opportunities for commercialization through the Company’s services.

Over the past year, the Company has made progress in strengthening its position in the gaming market. By expanding its presence in digital channels and broadening its range of self-produced media content in digital sports media, the Company has improved its competitiveness. The Company is therefore well-positioned to capitalize on the opportunities offered by the digital transformation in sports media.

In the Swedish gaming market, the Company holds gaming licenses, which opens up opportunities for commercial collaborations with partners in the media and entertainment sector in Sweden.

The Company has implemented a comprehensive savings program that has optimized its cost structure without negatively impacting commercial functions. This has resulted in a cost-efficient organization. With these changes, the Company is now better equipped to capitalize on its commercial opportunities and continue its growth.

The Company is now conducting a Rights Issue to continue the Company’s operations and development of overall objectives.

Use of proceeds from the Rights Issue
Upon full subscription in the Rights Issue, the Company will receive approximately SEK 4 million before issue costs. These funds are intended to be used for the following purposes:

• Development of the Company’s content and technology to diversify the product and service offering, approximately 65%.
• Expansion of the Company’s marketing, distribution, and commercial reach in both existing and new markets, approximately 35%.

Terms and conditions for the Rights Issue
The Board of Directors of FSport has decided to propose that the Annual General Meeting, which will take place on May 30, 2024, resolves to carry out a Rights Issue in accordance with the following main terms and conditions:

• The Rights Issue comprises a maximum of 133,751,922 shares. Upon full subscription in the Rights Issue, the Company will receive approximately SEK 4 million before issue costs.
• Those who are registered as shareholders in the Company by Euroclear Sweden AB on the record date have preferential rights to subscribe for shares in the Rights Issue. The record date for determining which shareholders are entitled to receive subscription rights is June 7, 2024.
• Each share in the Company entitles the holder to one (1) subscription right for subscribing to shares. Six (6) subscription rights entitle the holder to subscribe to seventeen (17) new shares.
• The subscription price in the Rights Issue amounts to SEK 0.03 per new share.
• The subscription period in the Rights Issue runs from June 11 to June 25, 2024.
• FSport expects to announce the outcome of the Rights Issue around June 27, 2024.
• The Rights Issue corresponds to a pre-money valuation of FSport of approximately SEK 1.4 million.
• No information memorandum will be published by the Company in connection with the Rights Issue.
• The last day of trading in the FSport share including the right to receive subscription rights is June 4, 2024, and the first day of trading excluding the right to receive subscription rights is June 5, 2024.
• Trading in subscription rights will take place on Nasdaq First North Growth Market from June 11 to June 19, 2024.
• Trading in BTAs (paid subscribed shares) will take place on Nasdaq First North Growth Market from June 11, 2024, until the Rights Issue has been registered with the Swedish Companies Registration Office, which is expected to take place around week 28, 2024.