Translation: Original published in Finnish on 9/10/2026 at 7:00 am EEST.

Betolar provided further details on the allocation of the financing package

Betolar announced yesterday the progress of the financing package agreed upon with ScaleWolf in June. If the conditions based on “sufficient operational capability” are met, the convertible capital notes subscribed by ScaleWolf will be reduced to 1 MEUR (previously 3 MEUR), and the remaining 2 MEUR is planned to be invested as equity in Betolar’s subsidiaries specializing in metal extraction and critical infrastructure protection. The size of the financing package remains unchanged at 17 MEUR, and the 8 MEUR at the letter of intent stage is still awaiting binding agreements. We expect the financing arrangements outlined in our forecasts to be implemented, so the announcement does not create any immediate pressure for change. We originally commented on the financial package here.

The first tranche of 3 MEUR is divided into three parts

Betolar announced yesterday that it is deepening its partnership with ScaleWolf. Originally, the first tranche of the 3 MEUR ScaleWolf financing package announced in June was intended to be implemented entirely as a tap issuance of convertible capital notes at the level of Betolar Plc, the parent company, but according to yesterday’s press release, the tranche will be divided into three parts. ScaleWolf will issue convertible capital notes worth 1 MEUR, and the remaining 2 MEUR will be invested as direct equity investments in two subsidiaries: Metal Extraction Technology (MET) Oy, which focuses on metal extraction technology, and Critical Infrastructure Protection (CIP) Oy, which specializes in solutions for protecting critical infrastructure. According to the press release, the pre-money valuations are 25 MEUR for MET and 10 MEUR for CIP, so ScaleWolf’s shareholding would be approximately 4% for MET and 9% for CIP. In our view, external equity investments are a positive signal of the value of Betolar's technology, but it is difficult to draw straightforward conclusions regarding valuation, as these investments are part of a broader arrangement in which ScaleWolf will acquire a majority stake in the Otanmäki project company, and the exclusive rights to the metal extraction technology for the US project will be transferred to ScaleWolf's partner. Investments are conditional upon the subsidiaries becoming "sufficiently operational by mid-December 2026" and upon concluding the definitive agreements. Otherwise, the reallocated 2 MEUR will be invested in the convertible capital notes as previously planned.

The third-party financing of up to 17 MEUR, as described in June, remains unchanged in amount but will be reallocated if the operational targets are met by December. At the Betolar parent company level, the figure is 7 MEUR instead of the previous 9 MEUR, and the remaining difference of 2 MEUR is allocated to the CIP and MET companies. ScaleWolf’s additional investment of 8 MEUR in the MET company and a project SVP, which is currently at the letter of intent stage, remains contingent on the definitive agreements, which are targeted to be finalized by the end of the year. The June press releases divided this 8 MEUR investment into 3 MEUR for the MET company and 5 MEUR for the Otanmäki project company.

Status of the financing package on Sep 9, 2026

We find the overall picture to be largely unchanged

The announcement leaves the overall picture of the financing package unchanged, as it primarily involves a reallocation of funds committed in June within the Betolar Group. The most significant changes are that ScaleWolf's investment is also targeted at protecting critical infrastructure and that a portion of the convertible capital notes, worth 2 MEUR, will likely convert into equity investments in subsidiaries. We consider this allocation to be a slightly positive factor because the coupon rates on the convertible capital notes are quite high (10% p.a.), and Betolar only had to give up relatively small stakes in its subsidiaries (4% and 9%).

This change puts only minor pressure on our estimates. In connection with the H1 report, we modeled ScaleWolf's tap issue at 3 MEUR and the MET company's minority stake at 21.4%. A smaller tap issuance will decrease capitalized interest by around 0.2 MEUR per year, while smaller minority interests in subsidiaries will slightly increase the loss attributable to the parent company's owners. On the bottom line, the net items are small, and we are not changing our estimates based on the release. Although much of the ScaleWolf investment is still at the letter of intent stage, we consider clarifying the financing package a minor step forward.

Planned group structure and shareholdings

Sources and status of the financial package