EAM Solar (EAM) Status Update summary

Financial position and funding

• Q1 2024 book equity NOK 18m; NAV ~NOK 40m; market value ~NOK 80m.

• Free liquidity ~NOK 1m, below critical operating levels; operating solidity described as adequate and generating some free cash flow.

• Q1 2024 going-concern statement says additional capital is needed; without it, material uncertainty exists over continued operations.

• Year-end 2023 book equity was below half of share capital, triggering the board’s statutory duty to convert share capital to other equity.

• At least NOK 20m of new equity is required after the 13 June outcome; a proposed NOK 22.5m rights issue was not approved, so alternative funding is needed.

Legal proceedings

• Milan criminal verdict expected 13 June; an appeal is expected regardless of outcome, with a final judgment earliest in 2025.

• Luxembourg criminal complaint filed in 2016 remains under investigation review, pending the Milan criminal case outcome.

• Milan arbitration 2 judgment could release ~NOK 30m; Aveleos appeal was expected by 18 June, and Therium Litigation Fund and lawyers have claims on any proceeds.

• UBI Leasing seeks a pledge of ~NOK 50m in Brescia; a May 2024 decision was expected and may be appealed. A settlement with GSE could release ~NOK 5m.

• Final judgments could enable NOK 30m–50m from release of a Milan pledge; upholding the 2019 criminal conviction would open recovery of NOK 60m.

Governance and shareholder actions

• AGM planned for 27 June, with notice due by 6 June; shareholders will elect the board and nomination committee.

• AGM authorization sought for at least NOK 20m net new equity, primarily through a rights issue; fallback financing authorities are also needed, with subscription prices set after the 13 June outcome.

• Active shareholders were asked to form a committee to propose board and nomination committee members, identify funding options, support a rights-issue underwriting consortium, and gather AGM proxies.

• The proposed shareholder committee was also tasked with organizing a petition asking Norway’s Director General of Public Prosecutions to investigate Enovos directors for alleged gross fraud.