Press Release, December 6, 2024

XTPL raises PLN 27.6 m in the series X share offering to scale up its commercial sales to PLN 100 m

XTPL (WSE:XTP), a global supplier of groundbreaking nanoprinting solutions for the next-generation electronics market, has reported that investors have paid up all 300.000 of the series X ordinary bearer shares as part of the offering. The issue price per share was set at PLN 92.00, which means that the value of the offering came in at PLN 27.6 million gross. The discount, expressed as a volume-weighted average of the price for the period of 30 days prior to setting the issue price per share, was 9.2%. XTPL's offering met with substantial interest from investors looking to acquire the Company’s shares. The issue proceeds will help finalize implementation of XTPL’s 2023-2026 Strategy adopted last year focused on a 10-fold increase in commercial sales to PLN 100 million in 2026. Brokerage House Trigon Dom Maklerski S.A. was a bookrunner in the process.

The XTPL offering covered 300.000 series X ordinary bearer shares issued by the Company in a private placement. After the successfully completed bookbuilding and acquisition by investors, the shares will represent 11.3% of the Company's share capital. The series X offering was addressed to investors selected by the Company’s Management Board on terms set out in the issue resolution.

“The investors have paid up all the shares, i.e.: 300,000 series X shares. We are also pleased with the low market discount at 9.2% compared to the volume-weighted average price for the period of 30 days prior to setting the issue price per share. This confirms the high interest in the XTPL offering and we are glad to be among the few market players that have obtained the expected funding for further development in the currently challenging environment. We sustain our goal which is to reach a 10-fold increase in commercial revenues to PLN 100 million in 2026 and will complete the investment process started last year, strengthening three key areas: sales, production and R&D. We expect 2025 to be a breakthrough year for XTPL and believe that our technology will see its first industrial deployment with a global partner – a leading manufacturer of advanced electronics. Individual and institutional investors from Poland and abroad who took part in the offering of series X shares will participate in this achievement and milestone of the Company’s growth journey. Thank you for recognizing our potential and for your trust. This allows us to build in Poland a technology firm with a global reach and seek to achieve our vision – to be a global standard in the manufacture of future generations of advanced electronics” says Filip Granek, CEO of XTPL S.A.

In May last year, XTPL announced a plan to increase its commercial revenues 10-fold to PLN 100 million in 2026, and in November 2023 it adopted the 2023-2026 Strategy that sets it on track to achieve the financial goal. XTPL is planning to invest approx. PLN 60 million in the years 2023-2026 to intensify and accelerate its business growth, including by increasing its production capacity and strengthening sales and R&D activities. The first stage of those investments has already been completed, financed with last year's issue of series V shares whereby XTPL raised PLN 36.6 million gross. Proceeds from the issue of series X shares will allow the Company to complete the last stage of the investment process, paving the way to achieving PLN 100 million in commercial revenues in 2026.

“We will use the proceeds from the offering of series X shares to complete the last stage of the XTPL investment process aimed at scaling up our commercial revenues to PLN 100 million in 2026 as part of the implemented 2023-2026 Strategy. The key areas that we will be strengthening are: sales, production and R&D. In the short term, the key objective for the Company will be to complete the first industrial implementation of our technology with a global partner, a leading manufacturer of modern electronics, as well as to increase orders for Delta Printing System (DPS) devices, including those for our American customers with the help from our Demo Center opened in Boston in November this year. In the medium term and within the current Strategy timeframe, we are preparing to start commercializing another business line: DPS+ devices, filling the niche between DPSs and modules for industrial implementation. In turn, in the long term, and in relation to our key industrial implementations, the multi-head printing technology developed as part of our R&D work will make an important part of XTPL's future product range and will potentially open the door for us to new application fields, segments and customers. That said, XTPL is heading towards an intensive period in any time perspective, but we are perfectly prepared for those challenges and the financial resources we have obtained will allow us to implement our projects and goals under the 2023-2026 Strategy to the benefit of the Company and its shareholders” says Jacek Olszański, CFO of XTPL S.A.

XTPL’s business model is based on three complementary business lines. These are printing modules for industrial implementation on the production lines of global manufacturers of electronics, the Delta Printing System (DPS) prototyping devices (and a new DPS+ line of devices is being developed to address the niche between DPSs and modules for industrial implementation) and High Performance Materials (HPM, nanoinks). The Company has 9 projects at least at the second stage of processes aimed at industrial implementation of its technology (completed initial contact, identified customer needs, started technology evaluation and development by XTPL), including 4 projects at the most advanced stage, covering areas of strategic importance for the Company: semiconductors and displays. The total potential of those 9 industrial projects, assuming they are positively validated and deployed, is estimated by the Company at around PLN 400 million in average yearly revenues over their respective lives, depending on the specific nature of each project. The Company’s end customers are global entities responsible for the production of next generation electronics, including a Chinese manufacturer of machines for the sector of modern displays, a leading semiconductor manufacturer from Taiwan, one of the world’s largest producers of FPDs (Flat Panel Displays) from South Korea and a top manufacturer of industrial machines from the United States, listed on the Nasdaq 100 index.