Corporate News

Wed, 01 Jun 2016 06:00:00 GMT
Anoto completes acquisition of Pen Generation Inc.

Lund, June 1, 2016 - Anoto Group AB (publ) ( "Anoto" or the "Company") announces that the Company as of May 31, 2016 completed the acquisition of Pen Generation Inc. ("Pen Generation") and resolved on an issue in kind of 144,689,816 new shares.

On February 8, 2016, Anoto announced that the Company had entered into an agreement to acquire Pen Generation. Pen Generation, which focuses mainly on education markets in Asia, has significant expertise in mass manufacturing and development of low-cost pens that are crucial for expansion towards consumer markets.

On May 31, 2016, Anoto has acquired, firstly, the remaining shares in the Pen Generation for a cash consideration of SEK 3 and, secondly, outstanding loan amounts owed by Pen Generation in the total amount of approximately KRW 10.1 billion (approximately SEK 70.4 million). The consideration that the Company shall pay to the sellers of the loan amounts owed by Pen Generation consists of a total of 144,689,816 new shares in Anoto. The new shares have been subscribed for by SOLiD Edu, Inc., SOLiD Technologies, Inc., MHL Corp. and Amicus Wireless, Inc., the sellers of the loam amounts owed by Pen Generation.

The value of the contribution in kind Board of Directors has been established on the basis of the company's own valuation and negotiations with the sellers of the claims against Pen Generation. The Board has made the valuation of the assets based on the value of Pen Generation on a debt free basis, taking into account the company's revenue during the period April 2015 through March 2016 and an assessment of future income for the period April 2016 to March 2017.

The value of the contribution in kind has been established by the Board of Directors based on the Company’s own valuation and negotiations with the sellers of the loan amounts owed by Pen Generation. The Board has made the valuation of the loan amounts owed by Pen Generation based on the value of Pen Generation on a debt free basis and thereby considered the Company’s revenues during the period April 2015 – March 2016 and estimated revenues for the period April 2016 – March 2017.

Based on the closing price of SEK 0.269 for the Anoto shares listed on Nasdaq Stockholm on 31 May 2016, the Board of Directors of the Company estimates that the Contribution in Kind, i.e. loan amounts owed by Pen Generation in the total amount of KWR 10.1 billion (approximately SEK 70.4 million) owed by Pen Generation will be valued at approximately SEK 38.9 million in total in the Company’s balance sheet.

Joonhee Won, CEO of Anoto, says: “The acquisition of Pen Generation is important for us. It is not only consolidating Anoto’s pen portfolio, but is also bringing Asian customers with large volume purchases. In addition, Pen Generation's low cost pens expand market potential for customers who are most sensitive about pricing. I am truly glad we completed this much needed acquisition.”

For further information, please contact: Joonhee Won, CEO

For more information about Anoto, please visit www.anoto.comor email ir@anoto.com

Anoto Group AB (publ) Reg.No. 556532-3929, Mobilvägen 10, SE- 223 62 Lund Tel. +46 46 540 12 00

The information above has been made public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 08:00 am (CET) on June 1, 2016.

About Anoto Anoto is a global leader in digital writing and drawing solutions. Its technology enables high-precision pen input on nearly any surface. Anoto is present around the world through a global network of strategic licensing partners that deliver user-friendly writing and drawing solutions for effective collection, transfer and storage of data. Anoto is traded on the Small Cap list of Nasdaq Stockholm under ANOT.


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