Tekna Holding (TEKNA) Investor Update summary

Strategic Update and Refinancing Plan

• Announced a fully underwritten NOK 300 million (CAD 42 million) rights issue to strengthen the balance sheet, repay a CAD 25 million shareholder loan and accrued interest, and allocate NOK 95 million for general corporate purposes, moving from net debt of CAD 27 million to a net cash position of CAD 15 million on a pro forma basis.

• Rights issue is fully guaranteed by the largest shareholder, with no underwriting commission and up to a 25% discount to VWAP; ensures equal treatment for all shareholders with pro rata tradable rights.

• Scotiabank will provide new credit facilities totaling CAD 10.5 million, including CAD 6 million demand credit, CAD 4 million standby letters of credit, and CAD 0.5 million credit card facility, increasing total available liquidity to about CAD 27 million and supporting flexible cash management.

• Post-transaction, equity ratio improves to 77% and net debt shifts to CAD -15 million, with a pro-forma gross cash position of CAD 21 million.

• EGM to approve the rights issue and share capital reduction is scheduled for 13 November 2025, with subscription period from 18 November to 2 December 2025 and share allocation expected on 3 December 2025.

Financial Performance and Profitability

• Achieved first EBITDA-positive quarter since IPO in Q3 2025, with CAD 0.5 million EBITDA (6% margin) and revenues up 9% year-over-year to CAD 8.3 million; YTD revenues at CAD 25.7 million (-7% YoY).

• Contribution margin improved to 58% in Q3 2025 from 33% YoY, mainly due to strong materials sales and cost reductions.

• Cost and efficiency improvement program led to a 26% headcount reduction and recurring OpEx savings of CAD 1.5 million, supporting a profitability inflection point.

• Positive cash flow from operations in Q3, with total available liquidity of CAD 27 million post-transaction.

• Targeting double-digit annual revenue growth (>10% CAGR) and EBITDA margins of 15–20% through 2030, with limited growth CAPEX required.

Strategic Positioning and Growth Outlook

• Positioned as a leading supplier of advanced materials and plasma systems for additive manufacturing, leveraging proprietary ICP technology and strong presence in aerospace, defense, and medical sectors.

• Additive manufacturing market expected to grow at 18–20% CAGR, with the materials segment forecasted at 20% CAGR; production capacity already tripled between 2020 and 2030.

• Ample production capacity to meet 2030 targets with limited CAPEX, supported by efficiency initiatives.

• Additional revenue potential identified in adjacent applications, including nano-nickel for MLCCs and powder recycling, with a disciplined approach to new investments.

• Increasing share of revenue from larger strategic customers and growing average annual revenue per customer.