Fragbite Group has signed agreements for a loan in the aggregate of 5 MSEK which mature on 23 July 2025. The purpose of the loan is to support subsidiaries Lucky Kat and Wagmi in managing their cash flow with release expenses for the upcoming node sales and public launch of the Company's token $KOBAN. These projects are expected to generate significant revenues for the Group in the first half of 2025. The lenders consist of some new investors but mostly investors who already own shares in the Company, including several major shareholders, who wish to accelerate the Company's growth.

The loans mature on 23 July 2025, and the Company may repay the loans in full or in part at any time until that date. The loans include a 5% arrangement fee and a fixed interest rate of 10% payable on or before 23 July 2025 in the event of full repayment or full conversion into shares. The Company has the right to offer each respective lender to convert his/her entire loan, including arrangement fee and interest, into shares on two occasions. If the lender accepts the offer, the following pricing applies:

• Occasion 1 – 28 February 2025: the conversion price per share is set to the VWAP for the 20 trading days immediately preceding the conversion date, with a 20 percent discount.
• Occasion 2 – 16 July 2025: the conversion price per share is set to the VWAP for the 20 trading days immediately preceding the conversion date, with a 20 percent discount.

The Board of Directors is of the opinion that the loan is at market rate, given the current market situation and sounding carried out ahead of the subscription. The loan is entered into with the aim of supporting financial sustainability. In the case of a lender being prevented from converting his/her loan to shares on the two occasions set out in the agreement due to applicable insider trading legislation, the Company has the right to offer such lender the opportunity to convert to shares as soon as he/she is no longer prevented from doing so.

Each lender undertakes not to borrow Fragbite Group shares and sell such borrowed shares in the market, so-called short selling, prior to the full repayment of the loan on the maturity date or, if applicable, prior to a conversion of said loan into shares.