EAM Solar (EAM) Status Update summary

Legal developments and milestones

• Criminal case in Milan confirmed fraud related to power plant contracts, with directors found liable, enabling new civil action for contract nullification and compensation claims.

• Legal counsel confirms no statute of limitations in Italy for voiding contracts involving criminal goods, regardless of elapsed time.

• A new civil lawsuit is being prepared to annul the 2014 purchase agreement and seek compensation for losses totaling EUR 110m, with a minimum recovery target of EUR 45-60m.

• Next major legal milestone is the appeal decision in summer 2024, with a potential collection of over €3 million and removal of pledges on three power plants if successful; further appeals and hearings are scheduled through 2026.

• Ongoing legal cases include disputes with UBI Leasing and other smaller cases in Luxembourg and Norway.

Financial position and liquidity

• Refinancing and restoration of the feed-in tariff for MFIL 25 are expected to complete in Q1, improving liquidity and financial flexibility.

• Operational cash neutrality or slight positivity is targeted by Q1 2026, with legal fees estimated at €250,000–€300,000 annually.

• Significant cost savings achieved through relisting to Euronext Growth and internalizing plant management, reducing annual expenses by approximately NOK 4.2 million in 2025.

• Ongoing rights issue of up to NOK 20 million aims to secure liquidity and support legal processes, with subscription rights tradeable until 14 October and the period ending 20 October 2025.

• Sale of one power plant could yield €1–2 million, providing a backstop for liquidity and investment needs.

Financial performance and operational update

• Power production from four Italian solar plants is expected to cover normal running costs by Q1 2026, supported by refinancing and FIT resumption plans.

• H1 2025 power production was 2,034 MWh, about 24% below normal due to theft-related capacity loss; adjusted EBITDA for H1 2025 was EUR 106k, with full-year 2024 adjusted EBITDA at EUR 382k (25% margin).