Maha Energy AB (publ) (“Maha” or the “Company”) is pleased

Maha Energy AB (publ) (“Maha” or the “Company”) is pleased to announce US $ 60 million term loan financing and US $ 10 million equity financing with the leading bank Brazilian investment company BTG Pactual

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SWITZERLAND, SINGAPORE, SOUTH AFRICA, UNITED STATES OF AMERICA OR ANY OTHER JURISDICTION IN WHICH THE RELEASE IS RELEASED, THE PUBLICATION OR DISTRIBUTION IS ILLEGAL. OTHER RESTRICTIONS APPLY. PLEASE SEE THE “IMPORTANT INFORMATION” SECTION AT THE END OF THIS PRESS RELEASE

Maha signed a loan and share subscription agreement with Brazilian investment bank Banco BTG Pactual SA for total proceeds of $ 70 million, before customary fees and expenses. The proceeds will be used to repurchase the outstanding SEK 300 million bond and to further accelerate and finance the company’s oil and gas production expansion program.

With reference to the press release of February 4, 2021, Maha Energy AB (“maha“or the”Society“) is pleased to announce that it has entered into a binding agreement with Banco BTG Pactual SA (“BTG Pactual“) for funding of $ 70 million (the”Funding“).

The Financing consists of a $ 60 million four-year senior secured term loan (the “Term loan“) and a $ 10 million private placement (the”Private placement“) by issuing 7,470,491 new shares at a price of SEK 11.59 per share, which represents a 10% discount from the volume weighted average price of the last 15 days.

The $ 60 million term loan will be amortized in stages over a 4-year period starting 15 months after the loan agreement closes. The term loan will carry a progressive interest rate from 12.75% to 13.5% after disbursement.

Subject to completion, the net proceeds from the financing will be used to refinance Maha’s SEK 300 million bond debt due May 29, 2021, fund capital expenditures across Maha’s asset portfolio and general business objectives.

“We are very pleased that BTG Pactual, the largest investment bank in Latin America, has decided to partner with Maha to continue the growth of the company. We have quadrupled our oil and gas production since we got the SEK 300 million bond in 2017, and with this capital injection we have a clear roadmap to quadruple it again. We are happy to welcome BTG Pactual to the Maha family of shareholders. said Jonas Lindvall, CEO of Maha Energy.

The Private Placement has been resolved by the Board of Directors of the Company (the “”Plank”) On March 30, 2021 with the support of the authorization given to the Board by the ordinary general meeting of the Company held on May 27, 2020.

The Private Placement is carried out with exemption from the preferential rights of the shareholders of the Company. The purpose of the Private Placement and the reason for the exemption from the shareholders’ preferential right is that the Private Placement is an integral part of the Financing. In addition, the Private Placement involves limited financial dilution for the existing shareholders, which the Board considers justifiable given the expected contribution of the Financing, including the Private Placement, to the long-term success of the Company. The Board believes that the Private Placement is in the common interest of the Company and its shareholders.

Following the registration of the capital increase relating to the Private Placement, the Company’s share capital will amount to SEK 1,203,595.173 divided into 109,417,743 shares, each with a nominal value of SEK 0.011. BTG Pactual will hold 7,470,491 shares representing approximately 6.83% of the total number of shares of the Company after the Private Placement. All the shares have been subscribed by BTG Pactual. The new shares will be paid and allocated as part of the disbursement of the Term Loan.

The completion of the Financing is subject to the usual conditions precedent. If Funding is not completed, cancellation fees may be due.

Pareto Securites AS is acting as financial advisor, and Setterwalls (Stockholm), Cohen & Gresser (New York) and Catao, Tocantins, Pacheco (Brazil) are acting as legal advisers to Maha in connection with the Financing.

This information is information that Maha Energy AB (publ) is obliged to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons indicated below, at 4:00 a.m. HEC the 31 March 2021.

For more information please contact:

Jonas Lindvall (CEO)
Phone: +46 8 611 05 11
E-mail: [email protected]

Where

Victoria Berg (Investor Relations)
Phone: +46 8 611 05 11
E-mail: [email protected]

About Maha
Maha Energy AB (publ) is an international upstream oil and gas company whose business activities include the exploration, development and production of crude oil and natural gas. The strategy is to target and develop underperforming hydrocarbon assets globally. Maha operates four oil fields: Tartaruga and Tie in Brazil, Powder River (LAK Ranch) and Illinois Basin in the United States. The shares are listed on Nasdaq Stockholm (MAHA-A). The head office is in Stockholm, Sweden, with a technical office in Calgary, Canada, as well as operations offices in Grayville, Illinois, United States and Rio De Janeiro, Brazil. For more information, please visit our website www.mahaenergy.ca

About BTG Pactual

BTG Pactual is the largest investment bank in Latin America, operating in the areas of investment banking, corporate lending, sales and commerce, wealth management and asset management. Since its inception in 1983, the Bank has been managed on the basis of a culture of meritocratic partnership, focused on clients, excellence and a long-term vision. We have consolidated our status as one of the most innovative players in the sector and have won numerous national and international awards. We currently have nearly 4,000 employees in offices across Brazil, as well as in Chile, Argentina, Colombia, Peru, Mexico, the United States, Portugal and England. For more information, visit http://www.btgpacual.com

Important information
The publication or distribution of this press release may, in certain jurisdictions, be subject to statutory and legal restrictions and persons in the jurisdictions where this press release was published or distributed should inform themselves of and observe such restrictions. The information contained in this press release does not constitute an offer to purchase, subscribe or trade in shares or other securities of the Company.

This press release does not constitute an offer to acquire securities in the United States. The securities mentioned herein may not be sold in the United States without registration under the Securities Act of 1933 or without the application of an exception to such registration. The information in this press release may not be broadcast, published, reproduced or distributed in the United States, Australia, Canada, New Zealand, Hong Kong, Japan, Switzerland, Singapore, South Africa. South or any other country or jurisdiction where action is not permitted or such action is subject to legal restrictions or would require additional registration or other action than required by Swedish law. Actions contrary to this instruction may constitute a violation of applicable securities laws.

This press release is not a prospectus. The Company has not authorized any offering of shares or rights to the public in any EEA Member State and no prospectus has been produced or will be produced in connection with the private placement.

Forward-looking statements
This press release contains certain forward-looking statements that reflect the Company’s current views on expectations of future events as well as on financial and business development, including statements regarding the private placement and statements regarding direction, planning, perspectives and strategies. Words such as “referred”, “estimated”, “planned”, “planned”, “anticipated”, “may” and other expressions which imply indications or predictions of future developments or trends, and which are not the basis of historical facts, is advanced information. Although the Company believes that these statements are based on reasonable assumptions and expectations, the Company cannot guarantee that these forward-looking statements will be implemented. Because these forward-looking statements include both known and unknown risks and uncertainties, actual results may differ materially from what is stated in the forward-looking information. The forward-looking statements contained in the press release speak only at the time of the press release and are subject to change without notice. The Company does not undertake to publish updates or revisions to forward-looking statements as a result of new information, future events or similar beyond what is required by applicable laws or stock market regulations.

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