Humble Group

The Interested Party is a real estate company based in Stockholm that has historically acquired and developed sustainable, high-quality housing in attractive locations in the Stockholm region. The Interested Party has however diversified the portfolio since the start and also focuses on acquiring land and developing areas for light industry. At the end of 2022, the Interested Party's project portfolio was expected to be worth approximately SEK 1,500 million.

The intention is to structure the Transaction as a so-called "sale-leaseback" where Humble directly, or indirectly through subsidiaries, enters into new market lease agreements with the Interested Party. The arrangement ensures that Humble's subsidiaries can continue to run their respective businesses in existing premises without interruption. Through the Transaction, Humble's subsidiary also gets a long-term landlord who has good knowledge and experience in running and managing properties for commercial use.

Humble has historically acquired the Properties in connection with acquisitions. The Properties have had a good value development and as a natural step in Humble's strategy to streamline the business, the board and management make the assessment that a sale of the Properties will benefit the Company in the long term. Through the Transaction, Humble will be able to focus to a greater extent on the core business, while the Company frees up capital that can be allocated to other value-driving initiatives and projects.

If the Transaction is carried out at the preliminary property values, it will imply a positive profit effect of approximately SEK 73 million, which will be reported in connection with the completion of the Transaction. The Transaction would mean that Humble's net debt, after deducting Humble's share of deferred tax, decreases by approximately SEK 290 million and that the net debt in relation to adjusted EBITDA pro forma decreases by 0.3x. After the completion of the Transaction, Humble's EBITA will decrease by approximately SEK 14 million and the net effect for Humble's liquidity and after amortization of the property-related loans is expected to amount to approximately SEK 210 million.

The Interested Party will carry out a customary due diligence review of the Properties and the parties will, in parallel with the review, negotiate the terms of the transfer agreement. The parties intend to enter into a binding transfer agreement regarding the Transaction during the second half of 2023. In light of the nature of the information and the time plan for the Transaction, Humble makes the assessment that the information has to be published before a binding transfer agreement has been executed.

"We are proud of the property portfolio that we have established over time and that the investments have created value for Humble. There has been a great deal of interest in the properties and with the Transaction we are bringing in a professional real estate partner and streamline the operations of the ten subsidiaries concerned. I am convinced that the sale of the Properties is strategically right for the group and that it gives us an increased focus on the core business, while ensuring continued operations and the opportunity for future expansion. The completion of the transaction also implies a positive one-off effect on the result of approximately SEK 73 million and we strengthen our cash position as well as reduce the interest-bearing liabilities. We look forward to a continued smooth process together with the Interested Party." says Simon Petrén, CEO Humble Group AB.

For more information, please contact:
Simon Petrén, CEO, Humble Group AB
Phone: +46 8 61 32 888
Email: simon.petren@humblegroup.se

This information is such that Humble Group is required to publish in accordance with EU Market Abuse Regulation 596/2014. The information in this press release has been published by the above contact person, at the time specified by Humble Group's news distributor Cision at the time of publication of this press release.

About Humble
Humble Group is a Swedish food-tech and FMCG-group, supplying the next generation of products that are good for people and the planet. Humble targets the segments of foodtech, eco, sustainability and vegan to drive high organic growth, acquisitions and utilize synergies in the different operation entities: Brands, Distribution, Manufacturing and Ingredients and R&D. Humble's technology solutions, refined through scientific research and extensive market experience, facilitate new formulations and recipes that improve the taste and texture of the next generation of sugar-reduced, sustainable and vegan products. For more information visit www.humblegroup.se

Humble is listed on Nasdaq Stockholm, First North Growth Market, under the ticker HUMBLE. FNCA Sweden AB is Humble's certified adviser. Tel: 08-528 00 399, E-mail: info@fnca.se

Forward-looking statements
This press release contains forward-looking statements that reflect Humble's intentions, beliefs, or current expectations about and targets for Humble's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which Humble 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 Humble 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. Humble does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this press release or any obligation to update or revise the statements in this press release to reflect subsequent events. 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 Humble 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 Stockholm's rule book for issuers