Press release

Embracer Group publishes information brochure regarding the proposed distribution of shares in Coffee Stain Group AB

In line with previous communication during 2025 and in accordance with the notice to an Extraordinary General Meeting to be held on 3 November 2025 (the “EGM”), the Board of Directors of Embracer Group AB ("Embracer") has proposed that the EGM resolves to distribute all of the shares in Coffee Stain Group AB ("Coffee Stain") to the shareholders of Embracer. An information brochure regarding the proposed distribution and the planned listing of Coffee Stain’s class B shares on Nasdaq First North Premier Growth Market in Stockholm has today been published by Embracer and made available on its website.

The information brochure contains, inter alia, background and reasons for the proposed distribution, a description of Coffee Stain’s operations and selected historical financial information for both Embracer (excluding Coffee Stain) and Coffee Stain. The information brochure is available here.

As previously communicated, Coffee Stain intends to apply for admission to trading of the company's class B shares on Nasdaq First North Premier Growth Market in Stockholm, which is expected to be completed no later than 31 December 2025. As also communicated, a Capital Markets Event, which will provide an overview of Coffee Stain, will be held on 17 November 2025. A company description, which will inter alia contain information about Coffee Stain and the risks associated with an investment in Coffee Stain’s shares, will be published by Coffee Stain prior to the first day of trading. The company description will be available on Embracer’s and Coffee Stain’s respective websites.

Advisers
Skandinaviska Enskilda Banken AB is acting as Lead Financial Advisor in connection with the distribution. DNB Carnegie Investment Bank AB (publ), Nordea Bank Abp, filial i Sverige and SB1 Markets, filial i Sverige are acting as Financial Advisors. Baker & McKenzie Advokatbyrå KB acts as legal counsel to Embracer and Coffee Stain.

About Embracer Group
Embracer Group is a global group of creative and entrepreneurial businesses in PC, console and mobile games, as well as other related media. The Group has an extensive catalog of over 450 owned or controlled franchises. With its head office based in Karlstad, Sweden, Embracer Group has a global presence through its operative groups: THQ Nordic, PLAION, Coffee Stain, DECA Games, Dark Horse, Freemode and Crystal Dynamics – Eidos. The Group includes 69 internal game development studios and engages over 7,000 talents across nearly 30 countries.

Embracer Group’s shares are publicly listed on Nasdaq Stockholm under the ticker EMBRAC B.

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About Coffee Stain Group
Coffee Stain Group brings together Scandinavian game developers and publishers with a portfolio of community-driven games primarily for PC and console. It has a proven track record of building successful titles such as Goat Simulator, Satisfactory, Deep Rock Galactic, Valheim, Teardown and Welcome to Bloxburg. The Group consists of around 250 employees and 13 game studios including Coffee Stain, Ghost Ship and Tuxedo Labs.

For more information, visit coffeestain.com

IMPORTANT INFORMATION
Embracer or Coffee Stain have not made and do not intend to make any offer of securities in any jurisdiction. Neither this press release nor the information brochure published on Embracer's website is a prospectus within the meaning of Regulation (EU) 2017/1129 (the "Prospectus Regulation") and neither this press release nor the information brochure has been approved by any regulatory authority in any jurisdiction. The information brochure is only intended to be used by Embracer's shareholders as basis for decision-making in regard to the Board of Directors' proposal to distribute all of the shares in Coffee Stain. A company description is planned to be published in connection with the planned admission to trading of Coffee Stain’s class B shares on Nasdaq First North Premier Growth Market.

This press release and the information brochure do not identify or purport to identify any risks (direct or indirect) that may be associated with an investment in Embracer Group or Coffee Stain. The information contained in this press release and the information brochure are only intended to describe the background to the distribution of all shares in Coffee Stain and do not purport to be complete or exhaustive.