Thin Film Electronics ASA has secured additional funding by way of a committed private placement of shares raising NOK 50 million

Oslo, 23 July 2020



To facilitate its continued development of unique solid-state lithium battery ("SSLB") technology for the wearable devices and connected sensors markets, Thin Film Electronics ASA ("Thinfilm" or the "Company") today announced that it has secured additional funding of NOK 50 million by a private placement of shares to fund the next phase of the Company's development and commercialization strategy. The private placement is subject to shareholder approval.

This private placement and related subsequent offering are proposed and announced in light of the Company's attainment of key technical milestones, including the filing of multiple SSLB-related provisional patent applications (announced 14 April), the successful deposition of critical layers of its SSLB stack (announced 15 June), and the successful fabrication of functional batteries on Thinfilm's stainless steel substrates in its San Jose facility (announced 10 July).

Based on the successful achievement of these milestones, the Company has pursued funding, as previously communicated, to enable the continued execution of Thinfilm's SSLB strategy and technology development roadmap. As a result, the Board of Directors of Thinfilm has received an offer and commitments from certain investors to subscribe for shares for a total subscription amount of approximately NOK 50 million. The offered and committed subscription price per share is NOK 0.15. Given the financial situation of the Company, the Board will recommend to the Company's shareholders that the offer be approved, as it provides the best funding alternative following diligent efforts by the Board to secure equity funding on the best possible terms. Therefore, the Board will call an extraordinary general meeting ("EGM") to approve the proposed private placement. The Notice of the EGM will be the subject of a separate announcement in due course, and the EGM is expected to be held on or about 17 August 2020. The offer involves the issuance of 333,866,666 new shares at a subscription price per share of NOK 0.15.

The offer is conditional upon the issuance of one warrant ("Warrant") for each share subscribed for in the private placement. The Warrant would have an exercise price of NOK 0.25 per share and be exercisable at any time from 31 March 2021 until 30 June 2021.

The Board considers it appropriate that the existing shareholders' preferential rights to subscribe for new shares and new warrants are waived because of the immediate need of financing in order for the Company to secure and continue its operations.

As the private placement amounts to more than 20% of the Company's share capital, a listing prospectus will be prepared and announced on Oslo Børs. The new shares in the private placement will not be admitted to trading on Oslo Børs until such prospectus has been approved and published. Pending such approval and publication, the new shares will be issued with a separate ISIN number in the VPS. The Board will also propose to the upcoming EGM that a subsequent offering is carried out at a subscription price per share equal to the subscription price in the private placement. The maximum amount of the subsequent offering would be NOK 10 million. The referenced listing prospectus will also meet the requirements of an offering prospectus and be published before commencement of the subscription period in the subsequent offering. The last day inclusive rights to subscription rights in the subsequent offering will be 23 July 2020 and the first day excluding rights to subscription rights in the subsequent offering is 24 July 2020. The Company will separately send an announcement with the key information relating to the subsequent offering.

Following registration of the new share capital pertaining to the private placement that will be proposed to the EGM, however, not including the new shares proposed to be offered in the subsequent offering, the Company will have an issued share capital of NOK 75,815,156.34 divided into 689,228,694 shares, each with a par value of NOK 0.11.

Thinfilm is Energizing Innovation™ with ultrathin, flexible, and safe energy storage solutions for wearable devices, connected sensors, and beyond. Thinfilm's innovative solid-state lithium battery (SSLB) technology is uniquely positioned to enable the production of powerful, lightweight, and cost-effective rechargeable batteries for diverse applications. The company's state-of-the-art flexible electronics manufacturing facility, located in the heart of Silicon Valley, combines patented process technology and materials innovation with the scale of roll-to-roll production methods to bring the advantages of SSLB technology to established and expanding markets. Thin Film Electronics ASA is a publicly listed company in Norway with corporate headquarters in Oslo and global headquarters in San Jose, California.

Contact: Kevin Barber - Chief Executive Officer, e-mail:

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.