Lifeline SPAC I Plc’s Half-Year Report for 1 January – 30 June 2024

This is the summary of the Half-Year Report for January-June 2024. The full Half-Year Report is attached to this release and is also available on the company’s website at www.lifeline-spac1.com

1 January – 30 June 2024

• Lifeline SPAC I Plc (“Lifeline SPAC I” or the “Company”) continued to evaluate and analyse high-growth technology companies in Finland and other Nordic countries during the review period.
• The operating loss for the review period was EUR 1.1 million and the result for the period was EUR 0.7 million. Typically for a SPAC company in the search phase, the Company had no revenue during the review period.
• At the end of the review period, the Company’s cash and bank receivables were approximately EUR 0.1 million.
• The funds deposited on the Company’s escrow account were approximately EUR 105.6 million[1].
• After the review period on 5 July 2024, the Company disclosed that it had concluded with the shareholders of Canatu Oy a share exchange agreement whereby the Company acquires all shares, option rights, and other rights exchangeable to shares in Canatu Oy by way of a directed share issue consisting of Lifeline SPAC I’s new shares to form a combined company. For further information, see “Events After the Review Period” in the Half-Year Report.
• After the review period on 5 July 2024, the Company’s Board of Directors also decided on a directed share issue of 94,995 new series A shares to the Company’s sponsors in order to complete the acquisition disclosed on 5 July 2024. Based on the commitment made on 30 September 2021, the sponsors are committed to investing additional capital in the Company by subscribing for series A shares in the Company at a subscription price of EUR 10.00 per share if the Company needs additional working capital to search for the acquisition target and complete the acquisition. For further information, see “Events After the Review Period” in the Half-Year Report.

The Half-Year Report is unaudited.

CEO Tuomo Vähäpassi:

"Our search phase ended on July 5, 2024, when we signed an agreement to acquire all shares and rights exchangeable to shares in Canatu Oy through a share exchange.

After analysing a large pool of companies, we concluded that combining with Canatu is the best alternative for our shareholders.

Canatu is a deep technology company with strong growth potential as a technology platform for carbon nanotube applications. The company operates in a growing market, its growth in recent years has already been strong, and the high value-add it produces for its customers has been reflected in good gross margins. In addition to a strong competitive position based on differentiated technology, Canatu has a scalable business model, proven mass manufacturing capabilities, experienced management and an ambitious corporate culture. The benefits of the combination, such as the support of the Lifeline SPAC I team and investments enabled by the significant capital, are expected to support and accelerate Canatu's growth path.

The combination still needs to be approved by our shareholders in an extraordinary general meeting, which will be held on or about August 23. The combination already has strong support from our shareholders, as shareholders who represent approximately 72% of all shares, have irrevocably committed to supporting it and voting for it in the extraordinary general meeting. However, I welcome all our shareholders to the extraordinary general meeting to hear more about the combination and make their own decisions.

If our shareholders approve the combination, we will move to the next value-creation phase in accordance with our exceptional SPAC structure. We will support the combined company in the long term through the Board of Directors and in certain other ways agreed with Canatu. We believe that by doing this, Canatu optimises its potential to generate value for our shareholders and its other stakeholders." 

Future Outlook

Lifeline SPAC I disclosed after the review period on 5 July 2024 that it had concluded with the shareholders of Canatu Oy a share exchange agreement whereby the Company acquires all shares, option rights, and other rights exchangeable to shares in Canatu Oy by way of a directed share issue consisting of Lifeline SPAC I’s new shares to form a combined company. Considering that the completion of the combination is subject to approval by Lifeline SPAC I’s shareholders in an extraordinary general meeting, and that the Company continues to operate as a SPAC for the time being, the Company does not issue any specific guidance or other future outlook.

Audio Conference

Lifeline SPAC I will organise an audio conference for investors and media on 19 Jul 2024 at 14:30 EET. You can register for the audio conference at https://lifelinespac1.videosync.fi/q2-2024.

For further information, please contact:

Tuomo Vähäpassi, CEO, Lifeline SPAC I Plc
tuomo.vahapassi@lifeline-spac1.com
+358 40 736 0676

[1] On 15 October 2021, the Company raised EUR 100 in gross proceeds in the initial public offering by issuing 10 million new series A shares. These proceeds are deposited in an escrow account and are primarily intended to be used on financing the growth of the target company of the acquisition. The funds deposited in the escrow account are presented in the balance sheet item Other receivables.

Lifeline SPAC I in brief

Lifeline SPAC I Plc is a Finnish Special Purpose Acquisition Company founded for corporate acquisitions. We raised capital with an offering and listed on the SPAC segment of the regulated market of Nasdaq Helsinki. Our objective is to carry out an acquisition within 36 months from the listing. We offer investors an opportunity to invest in companies that retail investors or many institutional investors otherwise would not be able to invest in, because these kinds of investments are typically made by later-stage private equity funds. Our aim is to generate profit for shareholders and increase the value of the target company by supporting its growth and development also after the acquisition. Our primary strategic goal is to identify and merge with an unlisted technology-focused Nordic company with high growth potential.