AVTECH implements a directed issue of B-shares

The Board of AVTECH Sweden AB (publ) (”AVTECH” or the ”Company”) today announces that the Board has decided to propose to an Extra General Meeting of the Company to decide to implement a directed issue of six million new AVTECH B-shares at 7,00 Swedish krona per share, which will provide the Company with 42 million Swedish krona prior to costs of implementation, estimated to be approximately 0,1 MSEK. As of the day of the announcement five qualified investors have signed committing agreements to subscribe for all the new shares of the directed issue in blocks of at least one (1) million B-shares, i.e. seven million Swedish krona, per investor.

The issue involves a share dilution of approximately 10,6 percent.

The directed issue requires a decision by an Extra General Meeting, which will be summoned in a separate notice. Main owners representing approximately 46 percent of the total voting power of the Company are supporting the Board’s proposal.

The reason to deviate from the preferential right of the shareholders of the Company is to, through means of the directed issue of B-shares, broaden the long-term ownership of the Company with a few additional financially strong players. The reason is furthermore to, in a time- and cost efficient way with an appropriate level of certainty, make sure that the Company gets access to additional financing to further enable a forceful expansion and broadening of the Company’s existing activities related to Aventus NowCast and Wake Vortex. The Company’s possibilities for value growth are thereby improved for the benefit of all share owners.

The subscription price of 7,00 Swedish krona per B-share has been establish based on volume-weighted average stock prices. The subscription price based on the latest twelve trading days, with the end day on August 29 2014, equals a discount of app. 15,6 percent; the subscription price based on the latest 60 trading days, with the end day on August 29, 2014, equals a discount of app. 8,4 percent, and the subscription price based on the 150 latest trading days with the end day on August 29, 2014, equals a discount of app. 0 percent.

Mangold Fondkommission AB is acting as financial advisor, and Baker & McKenzie Advokatbyrå KB is acting as legal advisor to AVTECH in regards of the directed share issue.

For more information, please contact

Christer Staaf, CEO, +46 (0) 8 544 104 80

Jonas Saric, CFO, +46 (0) 8 544 104 80

About AVTECH Sweden AB (publ)                                                                                                                                                                                            

AVTECH develops products and services for digital Air Traffic Management (ATM). Its customers include the global aviation industry; e.g. airlines, airports, aviation authorities, technology companies and airline manufacturers. By using AVTECH’s products and services, each individual flight as well as the entire airline operation can be optimized in terms of cost, noise and emission, efficiency, punctuality and safety. The head office is in Stockholm, Sweden with subsidiaries in Toulouse, France and an associated company in Dubai, U.A.E. AVTECH Sweden AB is listed on NASDAQ OMX First North and has appointed Mangold Fondkommission AB, tel: +46 8 503 01 550, as Certified Adviser.

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