Kaupang Krypto AS - The SiLLC Assembly

ARCANE CRYPTO RESOLVES ON A DIRECTED SET-OFF ISSUE OF SHARES TO BULLTECH AS AS AN ADDITIONAL CONSIDERATION FOR THE ACQUISITION OF KAUPANG KRYPTO AS

ARCANE CRYPTO RESOLVES ON A DIRECTED SET-OFF ISSUE OF SHARES TO BULLTECH AS AS AN ADDITIONAL CONSIDERATION FOR THE ACQUISITION OF KAUPANG KRYPTO AS

02 September 2022

The Board of Directors of Arcane Crypto AB (“Arcane Crypto” or the “Company”) has today, based on authorization from the general meeting of shareholders held on 10 May 2022, resolved to issue 58,452,374 new shares to Bulltech AS (the “Seller”), as an additional consideration (the “Additional Consideration”) in accordance with the share purchase agreement of Kaupang Krypto AS (“Kaupang”), which was announced on 13 October 2020. The Seller is entitled to the Additional Consideration due to Kaupang meeting agreed turnover targets.

On 13 October 2020, Arcane Crypto announced that the Company’s subsidiary Arcane Crypto AS had entered into a share purchase agreement regarding the acquisition of all shares in Kaupang from Bulltech AS in which the consideration consisted of (i) NOK 1,000,000 in cash and (ii) NOK 18,500,000 which were set-off against shares in Arcane Crypto. In addition, the Seller is also entitled to the Additional Consideration. As the terms and conditions regarding the Additional Consideration under the share purchase agreement have been met, the Board of Directors of Arcane Crypto has today resolved on and completed a directed set-off issue of shares in Arcane Crypto to the Seller in order to settle the Additional Consideration.

Based on authorization from the Annual General Meeting held on 10 May 2022, the Board of Directors of Arcane Crypto has resolved upon and completed a directed set-off issue of 58,452,374 shares, meaning that the Company’s share capital will increase by SEK 213,276.57120. The right to subscribe has, with deviation from the shareholders’ preferential rights, been given to the Seller of Kaupang, i.e., Bulltech AS. The reason for the deviation from the shareholders’ preferential rights is to fulfil the Company’s obligations towards the Seller under the share purchase agreement and thus set-off the Seller’s claim regarding the Additional Consideration for Kaupang.

Payment was made by way of set-off of the Seller’s claim under the share purchase agreement, which corresponds to a subscription price of SEK 0.184250001548269 per share. The number of issued shares corresponds to a dilution of approximately 0.67 percent of the total number of shares in Arcane Crypto. The subscription price was agreed in the share purchase agreement based on the volume-weighted average price of Arcane Crypto’s share on Nasdaq First North Growth Market the sixty (60) trading days immediately preceding 31 December 2021.

The Seller has accepted a lock-up for the Additional Consideration for a period of 24 months from the closing date of the acquisition of Kaupang. However, the Seller shall be entitled to sell shares up to an amount of SEK 3,000,000.

For further information, please contact:

Torbjørn Bull Jenssen, CEO, Arcane Crypto AB

e-mail:

Web: investor.arcanecrypto.se

About Arcane Crypto

Arcane Crypto develops the infrastructure and products that enable worldwide adoption of bitcoin and digital assets. Arcane is building a platform for users to learn, trade and invest in digital assets, all from one account. Our market leading research content educates our users and builds trust. Arcane achieves scale by providing a platform with open APIs, allowing third parties to develop their own products using our technology and then distribute their product to our users.

The Company is listed on Nasdaq First North Growth Market and Mangold Fondkommission is Certified Adviser, tel. +46 8 5030 1550, e-mail: , web: www.mangold.se

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Disclaimer
All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.

Arcane Crypto AB announces an operational reorganization, unifying its growing private wealth businesses under a new business unit called K33.

Arcane Crypto AB announces an operational reorganization, unifying its growing private wealth businesses under a new business unit called K33.

22 November 2022

In parallel Arcane has initiated a strategic review of its investment and venture business to exploit current market opportunities.

Over the last year, Arcane Crypto AB (“Arcane”) has experienced substantial interest in its private wealth business, currently offered by the various subsidiaries, today known as Arcane Research, Kaupang Krypto and Arcane Assets.

To capitalize on this interest and opportunity, these units will be combined into one single business unit called K33. This provides the operational optimizations and the single-minded focus needed to capture the opportunities in K33.

For Arcane as a group, unifying the private wealth initiative under K33, creates optionality to act on strategic interest. This may include, but is not limited to, taking on strategic investors or separated listings of different parts of the portfolio.

In practice, Arcane’s wholly owned subsidiary Arcane Crypto AS will be renamed K33 Holding AS, trading as K33. The relevant sub-entities will be combined and renamed accordingly.

Arcane is also in the process of optimizing the operation of its investment portfolio. Initially, the portfolio will consist of K33, Arcane Green Data, Pure Markets and LN Markets. Arcane will explore both new investments and M&A, seeking to take advantage of a strong deal flow and interesting opportunities in the market as well as potential partnerships.

K33 – Safe. Secure. Digital Assets.

K33, available on k33.com, will be a research-led digital assets brokerage with investment services. Helping clients across EMEA make informed decisions backed by industry leading digital assets research as they invest for the long term is already proving a unique and winning proposition to Arcane’s customers. K33 provides this through a unified platform where investors and wealth managers get access to Research, digital assets brokerages offering funds & structured products.

The unified platform will be launched during Q4 2022. The platform can be accessed both directly by customers and through distribution partners and asset management firms that sign up to offer the K33 platform as part of their investment offering.

“I am very happy about this operational restructuring of Arcane. By doing this, K33 will get the focus and attention it needs to become, quite simply, the preferred private wealth platform for digital assets in Europe” says Torbjørn Bull Jenssen, CEO of Arcane and of K33.

According to the CTO & Head of Product, Oisin Zimmermann; “K33 represents our vision of the future of the digital assets investment industry, with client funds and investments guided and protected by experts. This will all be offered through an intuitive digital interface, augmented by real-time one-on-one advice and support. We’re targeting young, affluent and high net worth individuals across EMEA, directly and through their existing wealth managers, who value our level of expertise, and our ability to serve the most demanding clients and managers.”

“We are happy to finally be able to announce this strategic reorganization for Arcane. Despite turmoil in digital asset markets recently, we continue to see massive interest in the sector from many market participants. Both the investment side, and the private wealth offering, K33, has an amazing potential. Under the new structure both parts of the business will get even better foundations to prosper and take strong positions in their respective markets” says Chairman Michael Jackson.

About K33

K33 is a research-led digital assets brokerage with investment services, helping clients across EMEA make informed decisions backed by industry leading digital assets research, enter the market guided by a multi-exchange brokerage service, and invest safely for the long term in tailored managed funds. K33 provides a unified platform where customers get access to Research, digital assets brokerages, funds, and structured products. The unified platform will be rolled out during Q4 2022 and into Q1 2023. The platform can be accessed both directly by customers on k33.com and through distribution partners and asset management firms that have signed up to offer the K33 platform as part of their investment offering.

About Arcane Crypto

Arcane Crypto AB is a holding company with broad exposure to the digital assets industry. The Company holds 100% stakes in K33, a research-led digital assets brokerage with investment services across EMEA, Arcane Green Data, an environmentally sustainable Bitcoin mining operation based in northern Norway, and minority stakes in both Puremarkets Ltd (37.5%), an interbank OTC market for digital currencies, and LN Markets (16%), a Bitcoin exchange built on the Bitcoin Lightning Network.

Arcane Green Data

Arcane Green Data is a bitcoin mining company. The company is generating close to 70 PH, operating out of facilities in the Norwegian power region NO4. NO4 is currently one of the world’s most attractive locations for bitcoin mining due to its low power prices and cold climate.

About LN Markets

LN Markets provides a leading trading platform for leveraged bitcoin and option trading, built on the Bitcoin lightning network and offering instant deposits of collateral from all over the world. For further information please see: https://lnmarkets.com/en

About Pure Digital

Pure Digital is working to establish an interbank market for digital assets with the world tier 1 banks as participants. The management team bring many years of experience at top tier banks and have successfully delivered a similar product for FX previously

Pure Digital has 7 LOIs already in place with global tier 1 banks and is in the process of attracting capital from these banks and other potential investors.

For further information, please contact:

Torbjørn Bull Jenssen, CEO, Arcane Crypto AB

E-mail:

Subscribe to press releases and financial information: https://investor.arcanecrypto.se/

The Company is listed on Nasdaq First North Growth Market and Mangold Fondkommission AB is the Company’s Certified Adviser.

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Arcane Crypto publishes Interim Report for Q4 and full year 2021

Arcane Crypto publishes Interim Report for Q4 and full year 2021

The fourth quarter of 2021 (compared to the fourth quarter of 2020)

· Group revenue increased to 148,930 kSEK (1,224)

· EBITDA amounted to -3,383 kSEK (-10,358)

· EBIT amounted to -11,737 kSEK (-10,373)

· The result for the period amounted to -12,568 (-9,533)

· Earnings per share before dilution amounted to SEK -0.002 (-0.018)

· Earnings per share after dilution amounted to SEK -0.001 (-0.018)

Full year 2021 (compared to full year 2020)

· Group revenue increased to 332,625 kSEK (2,103)

· EBITDA amounted to -21,969 kSEK (-17,812)

· EBIT amounted to -33,468 kSEK (-17,878)

· The result for the period amounted to -163;440 kSEK (-16,876)

· Adjusted result for the period amounted to -36,487 kSEK (-16,876)

· Earnings per share before dilution amounted to SEK -0.021 SEK (-0.031)

· Earnings per share after dilution amounted to SEK -0.019 SEK (-0.031)

CEO Torbjørn Bull Jenssen comments:

“Q4 has been a good quarter for Arcane with record revenue and improved result. We increased net sales by 83% compared to the previous quarter and our gross profit increased by 67% also compared to the previous quarter.

On the tech front, we launched Research in live beta on our new platform. On the mining front, we received the second delivery of our mining machines and are now running at a capacity of close to 80 PH/s.

Our portfolio company LN Markets has continued to set new records in trading activity, benefitting from increasing adoption of Lightning. Pure Digital continues to see strong interest from tier one banks, driven by the underlying client demand from institutional investors.“

Main events during Q4 2021

On October 4, Linus Jönsson was appointed as the new Group CFO of Arcane Crypto. Linus assumed his role on January 10th, 2022, replacing Interim CFO Per-Olov Östberg.
On October 19, Arcane Green Data announced it had partnered with Luxor Technology Corporation and had gone live with the current hosting capacity of miners.
On October 26, Arcane Green Data announced a purchase agreement for 360 Antminer s19 Pro (100 TH/s). The purchase agreement represents a total of 36,000 Terra Hash (TH) of computing power and the total cost amounts to approximately SEK 28 million. The machines were delivered in Q1 2022 and Arcane Green Data’s total hosting capacity doubled to 2.5 MW.
On November 12, Arcane Crypto’s wholly owned subsidiary Ijort Invest AB (“Trijo”) announced that Arcane Crypto’s CEO Torbjørn Bull Jenssen would become CEO of Trijo and thereby replace Totte Löfström.
On December 9, an extraordinary general meeting elected two new members to the Board of Arcane. Michael Jackson was elected Chairman of the Board and Sïmon Saneback was elected Member of the Board.
On December 14, Arcane Crypto’s partner Valour received approval from the Swedish Financial Supervisory Authority on its Base Prospectus, which includes an Exchange-Traded Product based on Arcane Assets’ cryptocurrency fund.

Main events after the end of the period

On January 13, Arcane Crypto’s wholly-owned subsidiary Kaupang Krypto AS entered into a collaboration with NFT AS and curator Sam Farao, to facilitate acquisitions of Bjarne Melgaard’s first crypto art collection The Lightbulb Man.
On February 1, Anna Svahn informed Arcane Crypto AB that she would have to resign from the board due to other professional obligations.

Webcast presentation

The company will hold a webcast presentation where CEO Torbjørn Bull Jenssen will present the report today at 10:00 a.m. CET. Investors, analysts, and media are invited to follow the webcast.

Webcast link: https://channel.royalcast.com/landingpage/hegnarmedia/20220225_3/

No pre-registration is required. The presentation will be held in English and questions can be submitted in English during the webcast.

For further information, please contact:

Torbjørn Bull Jenssen, CEO, Arcane Crypto AB
E-mail:

About Arcane Crypto

Subscribe to press releases and financial information: https://investor.arcanecrypto.se/

For more information, please visit: https://www.arcane.no/

The Company is listed on Nasdaq First North Growth Market and Mangold Fondkommission is Certified Adviser, tel. +46 8 5030 1550, e-mail: , web: www.mangold.se.

The information disclosed in this Interim Report is mandatory for Arcane Crypto AB to publish pursuant to the EU’s Market Abuse Regulation (MAR). This information was submitted for publication at 08:00 (CET) on 25th February 2022, through the agency of the CEO.

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