GS Sweden AB (publ) (the ”Company” or “GomSpace”), parent company of GomSpace ApS, has entered into a letter of intent (“LoI”) with the Swedish company “Svenska rymdaktiebolaget” (the Swedish Space Corporation) regarding the potential acquisition of 100% of the shares in the Swedish company NanoSpace AB.

The LOI contains broad terms of a potential transaction with the right for GomSpace to conduct a due diligence investigation and the acquisition is conditional upon both parties entering into a definite agreement containing specific signing and closing terms and conditions yet to be negotiated.

Should the acquisition be completed, the parties have agreed that the purchase price is to be paid with 600,000 new issued shares in GS Sweden AB and with a cash payment of 3,000,000 SEK. Such new issue of shares will be possible for the board of directors to decide upon with support from an authorization granted at an extraordinary general meeting held on April 28, 2016. The potential dilution for the current shareholders will approximately be 2.75%.

NanoSpace is a company that develops and provides propulsion technology and products for nanosatellites, and participates in space technology projects funded by the European Space Agency (“ESA”) and Swedish national funding programs. NanoSpace’s propulsion technology and products are based on the company’s leading expertise in applying MEMS (Micro Electro Mechanical Systems) technology to space propulsion – providing unique advantages in miniaturization and precise thrust control.

GomSpace’s wish to acquire NanoSpace AB for the purpose of building up more Swedish activities and to have satellite propulsion products in its portfolio alongside the activities already in Gomspace ApS. Future operational nanosatellite missions will depend on constellations of satellites and therefore require the ability to fly these satellite in an accurate formation - as can be achieved using ability provided by the propulsion technology and products developed by NanoSpace.

GomSpace and NanoSpace already collaborate closely in multiple customer projects on integrating NanoSpace propulsion technology into GomSpace satellite platforms.

Should the acquisition be completed, Swedish Space Corporation has accepted to make an executive director available for the board of directors in GomSpace. Swedish Space Corporation is a global provider of advanced space services, who enables governmental agencies, companies and other commercial or research institutes to help Earth benefit from space.