Common use of Financing risk Clause in Contracts

Financing risk. The Group is deemed to be sufficiently funded following the completion of the Recent Equity Issue. However, additional capital needs, due to for example unforeseen costs and/or larger capital expenditures than expected, cannot be ruled out. There is a risk that the Group cannot satisfy such additional capital need on favourable terms, or at all, which could have an adverse effect on the Group’s business, financial condition and equity returns. As further described in this Company Description, Closing of the acquisition of the Target Company owning a part of the property Kävlinge Sandhammaren 1 is intended to occur during Q1 2017. The credit approval from the bank, and therefore the commitments under the Debt Facility, is only valid for six months. This means that the Company will have to apply for a new credit approval with the bank before the relevant Closing date of the acquisition of the Target Company owning part of the property Kävlinge Sandhammaren 1. There is a risk that the bank granting the Debt Facility, or any other bank if the Company has applied for funding elsewhere, will not grant a new credit approval if, inter alia, the property has lost value or the general terms of the debt market has adversely changed. The Share Purchase Agreement in relation to the Target Company owning part of the property Kävlinge Sandhammaren 1 contains a clause stating that committed finance is a condition for Closing (i.e. finance out clause). If the Company is unable to renew its credit approval, both parties have an individual right to cancel the relevant Share Purchase Agreement. Should the Midroc Vendor exercise its right to cancel the relevant Share Purchase Agreement and Closing of the relevant acquisition does therefore not occur there is a risk that the Group's financial condition and equity returns will be adversely affected. Furthermore, in the event that the Company is unable to receive a new credit approval from the bank granting the Debt Facility, and both the Company and the relevant Midroc Vendor are seeking to complete the relevant acquisition, the Company will have to apply for funding from another bank. There is a risk that such other bank will grant funding on less favourable terms than the bank granting the Debt Facility, or not grant funding at all, which could adversely affect the Group´s financial condition, cash flow and equity returns.