Aino Health’s planned listing on Nasdaq First North

PRESS RELEASE

November 27, 2016

NOT FOR DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO NEWS DISTRIBUTORS IN THE UNITED STATES, OR FOR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SINGAPORE, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION OR RELEASE WOULD NOT BE ALLOWED BY APPLICABLE LAW.

Aino Health’s planned listing on Nasdaq First North

The Board of Directors in Aino Health AB (publ) (“Aino Health” or the “Company”) has decided to apply for listing of the Company’s shares on Nasdaq First North, and in connection with the listing the Board of Directors has decided on a share issue of up to 2,070,000 newly issued shares directed to the general public and institutional investors (the “Offer”), whereby the Company will receive a maximum of SEK 48.8 M after transaction costs. A prospectus relating to the Offer will be published on November 27, 2016. Preliminary first day of trading is on December 16, 2016.

The total value of the Offer, if fully subscribed, amounts to SEK 53.8 M distributed on 1,800,000 newly issued shares (the “Share Issue”) and an over-allotment of up to 270,000 existing shares at a share price of 26.00 SEK (the “Over-allotment”). The Over-allotment can be exercised in the event of a major interest in the Offer. The Over-allotment is implemented as a part of stabilization, after which the Company may issue an additional 270,000 shares through the Over-allotment option directed to Erik Penser Bank.

A number of investors have agreed to share subscription agreements of SEK 31.9 M, corresponding to approximately 68 percent of the Offer excluding the Over-allotment.

Aino Health’s business concept is to increase health awareness in various organizations and to reduce personnel sickness absence by promoting an IT-based process solution to both private and public companies and organizations. The Company provides services and tools for the entire value chain of health- and safety management as well as related services, processes and methods.

The social need to improve the population health eg by reducing sickness absence levels places new demands on employers and creates the need for new solutions. Being innovative and offering modern solutions, Aino Health enables a revolutionary and effective health management for companies and organizations. This means that Aino Health’s potential client base is very large.

The Offer

• The Offer constitutes of up to 1,800,000 newly issued shares and an Over-allotment of up to 270,000 existing shares in the event of major interest in the Offer
• The share price is 26.00 SEK per share, corresponding to a pre-money equity valuation of approximately SEK 94.2 M (EUR 9.6 M)
• Erik Penser Bank will, during a period of 30 days from the first day of trading on Nasdaq First North, engage in transactions that stabilize, maintain or otherwise affect the price of the shares.
• The Company has, within the frame of the stabilization, agreed on an Over-allotment option to Erik Penser Bank to issue additional 270,000 shares
• The number of shares in the Company will increase with up to 2,070,000 shares, corresponding to 36 percent of the total number of shares in the Company after the completion of the Offer
• The Offer amounts to SEK 46.8 M and SEK 53.8 M if the Over-allotment is fully exercised. The Company will receive up to SEK 48.8 M after transaction costs of SEK 5.0 M
• Aino Health has applied for listing of the Company’s shares on Nasdaq First North and preliminary first day of trading on December 16, 2016
• A prospectus with full terms has been published today on November 27, 2016 and is available on Aino Health’s website, www.ainohealth.com

Indicative time schedule

Subscription period:                                  November 28 – December 8, 2016

Publication of the result:                            December 9, 2016

Preliminary first day of trading:               December 16, 2016

Background and reasons

Aino Health Management Oy was founded in Finland in 1994 and has been operating its current business model since 2010. The company has developed a complete system of IT-based services with a focus to improve corporate health and reduce sickness absence levels in private and public organizations.

The general corporate health level is most often expressed in terms of sickness absences and measured in terms of sick pay costs and salaries to substitutes. Furthermore, there are additional costs that are hard to measure such as reduced quality of delivered products and services as a consequence of a changing and unstable workforce, as a result of the general state at the work place, in full and in working groups.

A complete service provided by Aino Health includes:

• Integration of the customer’s personnel records and Aino Health’s central IT-based database, Health Manager
• HealthManager collects and analyses personnel data including suggestions for actions when the sickness absence reach a certain level as well as monitoring of supervisors and managers’ actions and signal of possible passivity regarding personnel sickness absences
• Sickness absence reporting and personal follow-up by qualified medical personnel through the Aino Health Call center/Health Desk
• SafetyManager, to be launched in 2017, will serve as the customer’s integrated solution for health and safety management in different organizations including registration, monitoring and reporting to top level management of events and processes related to the company safety and working environment

Aino Health’s systems can be described as tools and services to be able to establish and maintain low sickness absence levels and reduce costs through ensuring that the employees get the attention needed when they are absent. Underlying reasons and patterns of the sickness absence are being monitored in consultation with employees and unions, and any passivity from managers can quickly be detected. Sickness absence can be a complex problem and can be explained by both obvious and hidden causes.

The subsidiary, Aino Health Management Oy, has established a reputable client base consisting of both private and public organizations in Finland. The customer base consists of approximately 150 customers, and around 30 customers with approximately 33 000 employees combined are using the HealthManager service. In 2015, 20 percent of Aino Health’s customers accounted for about 85 percent of the turnover.

Aino Health is facing an expansion with the aim of further establishment in Europe. The first step will be a market launch in Sweden and Germany where discussions and negotiations with a number of potential customers have been initiated.

The current corporate structure consists of the parent company Aino Health AB (publ), the Swedish subsidiary Aino Health Sweden AB and the fully owned Finnish subsidiary Aino Health Management Oy with its subsidiary Aino Active Oy. The corporate group will be expanded and a new subsidiary will be established in each new country Aino Health enters.

Aino Health’s objective is to achieve a strong growth, partly by growing organically in already established markets and partly through entering new geographical markets. The objective is that establishments on new markets should be self-financing without the need for additional capital after two years.

The Board of Directors in Aino Health has, to provide the Company with sufficient working capital and strengthen the financial position, on November 21, 2016 decided on the Offer based on EGM’s approval on September 19, 2016. The Offer amounts to a total of SEK 53.8 M if fully subscribed and including the Over-allotment option, after which the Company will receive up to SEK 48.8 M after transaction costs of SEK 5.0 M. The proceeds will be utilized for working capital with the exception of 1-2 million relating to adjustments of software.

The offer and the subsequent listing on Nasdaq First North will create liquidity in the Aino Health share. The listing of Aino Health will grant the company access to the stock market, which facilitates future fund raising. The listing also enables Aino Health to, over time, get new shareholders that could strengthen the company development. The listing is also expected to have positive effects on the company’s relationships with business partners, employees and potential clients. The Board of Directors of Aino Health assess that the company is well suited for a broadening of ownership and listing of shares.

Investor meetings

Aktiespararna       Aino Health will be presented at Aktiespararnas aktiedagar in Stockholm Monday, November 28. Additional information on www.aktiespararna.se/evenemang

Stockholm            Presentation, Monday December 5 at 17:30, Erik Penser Bank, Apelbergsgatan 27. Sign up on seminarium@penser.se

Stockholm            Lunch presentation Tuesday December 6 at 12:00, Erik Penser Bank, Apelbergsgatan 27. Sign up on seminarium@penser.se

Prospectus and application forms

The prospectus with the terms and instructions and application forms are available on the Company’s website (www.ainohealth.com) and at Erik Penser Bank’s website (www.penser.se). The prospectus can be ordered, free of charge, by e-mail; emission@penser.se. An application can also be made via Skandiabanken, www.skandia.se.

Advisers

Erik Penser AB is the financial advisor and Advokatfirman Lindahl KB is the legal adviser in the Offer. Erik Penser AB is Certified Adviser.

This information is information that Aino Health AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at November 27 CET on 18:00 2016.

For more information, please contact:

Jyrki Eklund, CEO

Phone: +358 40 042 4221

E-mail: jyrki.eklund@ainohealth.com

About Aino Health

Aino Health operates within Corporate Health Management. The company has developed a complete system of IT-based services with a focus to improve corporate health and reduce sickness absence levels in private and public organizations.