Spanish government authorises investment of EUR 19.2 million as part of a planned EUR 39.2 million convertible note issue in Subgen AI’s subsidiary Substrate AI

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Subgen AI AB (“Subgen AI” or the “Company”) announces that the Spanish Council of Ministers today, June 29th, 2026, has authorised an investment of EUR 19.2 million in Subgen AI’s Spanish subsidiary Substrate Artificial Inteligence S.A. (“Substrate AI”), through the Spanish Society for Technological Transformation (the “SETT”). The authorised investment by the SETT is intended to form part of a planned financing totalling EUR 39.2 million in which private companies Loft Structured Opportunities Fund I and 8 International LTD are also expected to participate through the issuance of new mandatory convertible bonds in Substrate AI (the “Financing”). The Financing remains subject to the signing of a definitive agreement between the parties, which is expected to occur on June 30, 2026. Subject to such agreement, the investment is planned to be deployed in up to ten sequential monthly subscriptions. The bonds will mandatorily convert into shares on the three-year anniversary of the agreement.The Company’s Spanish subsidiary Substrate AI today announced that the Spanish Council of Ministers has authorised an investment of up to EUR 19.2 million by the SETT through the issuance of convertible bonds in Substrate AI. Subject to a definitive agreement, SETT is expected to subscribe to 49 percent of the convertible bonds effectively subscribed by the investors, while Loft Structured Opportunities Fund I and 8 International Ltd are expected to subscribe to equal shares of the remaining portion of the convertible bonds. The total planned issue amounts to EUR 39.2 million.The investment by the SETT requires that the ownership of Substrate AI by the public sector, directly and indirectly, stays below 49 percent of the total share capital. The investment by the SETT is made to develop artificial intelligence solutions that will enable Spain and Europe to compete and lead in this field at a global level.“We are thrilled that the Spanish government shares our view of Substrate AI as a key factor of the AI revolution. As one of the few European companies developing its own AI patents, Substrate AI is in a position to lead the way in the European and international markets. For Subgen AI, this is of course a very welcome validation of our own investment in Substrate AI”, says Lorenzo Serratosa, CEO of Subgen AI.The planned investment by the SETT of up to EUR 19.2 million is in...

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