Solar Foods raised about 25 MEUR through directed share issue to advance Factory 02 project

Translation: Original published in Finnish on 1/23/2026 at 9:23 am EET.

Solar Foods announced on Thursday that it had successfully completed a directed share issue, through which the company raised gross proceeds of approximately 25 MEUR. The issue was carried out in an accelerated bookbuilding process and, in addition to institutional investors, the company's strategic partner GEA Finland Oy participated in it. The funds raised will be used to secure financing for the industrial-scale Factory 02 production facility. Securing the financing is a critical step in the company's growth strategy, as it addresses the company's immediate funding needs, demonstrates the availability of equity financing, and signals GEA's and institutional investors' confidence in the industrial-scale Factory 02.

Significant funding round materializes future factory investment

A total of 5,154,691 new shares were issued in the share issue at a subscription price of EUR 4.85. The subscription price included a discount of some 15.2% compared to the closing price of the previous day. The new shares represent around 17.2% of the company's share capital after the issue.

We consider the completion of the share issue crucial for the company, as we have previously estimated that the company will need new funding within the next 12 months to strengthen its balance sheet and finance investments. The discount applied in the issue is typical for issues carried out in an accelerated bookbuilding process, considering the financing need. According to Solar Foods' Board of Directors, carrying out the share issue as a directed issue is justified due to its speed and cost-effectiveness compared to a rights issue. We agree with the Board of Directors. In our view, the risk associated with a rights issue would have been greater given Solar Foods' ownership structure.

GEA as a strategic partner for the Factory 02 project

Solar Foods and GEA have agreed to negotiate a long-term strategic partnership in the field of gas fermentation and related technologies. As part of the arrangement, GEA made a significant 8 MEUR anchor investment in Solar Foods by subscribing for the company's shares in a directed share issue. In addition, the parties have signed an exclusive agreement under which GEA will be responsible for the design, construction, and transportation of process equipment. A 24-month supply agreement for equipment and services for Factory 02 is also being negotiated with GEA. GEA's ownership will rise to approximately 5.5% of the company's shares as a result of the issue. We consider GEA becoming an anchor investor and technology partner a positive signal. GEA is a significant industrial player (10 BEUR market cap, 5.5 BEUR revenue), and we believe its commitment validates Solar Foods' technology and improves credibility in scaling up production to an industrial scale.

The financial position improves, giving the company breathing room to advance Factory 02

The share issue improves Solar Foods' short-term liquidity position and significantly reduces the financing risk associated with the investment case, which has been a key concern. Gross proceeds of approximately 25 MEUR give the company breathing room to advance the Factory 02 project and move towards a final investment decision. In October 2025, Solar Foods estimated the funding required for Factory 02 to be 179-199 MEUR, assuming the company utilizes strategic partners such as GEA. According to the company's calculations, the equity portion would be 25-35 MEUR (the rest being debt and grants under IPCEI support), which means the completed share issue significantly improves the company's ability to carry out the O2 factory investment.

We will update our estimates to account for the increased number of shares and strengthened cash position. Although the issue has a dilutive effect, securing the financing is definitely positive and essential for the company's continuity and the implementation of its growth strategy.