INQ substantially deleverages its balance sheet as secured lenders convert USD 5.4 million of convertible debt into shares
INQ Group AB (publ) (“INQ” or the “Company”) today announces that holders of its senior secured convertible loan have elected to convert approximately USD 5.43 million of principal and accrued interest into equity, reducing the principal outstanding under the loan by more than three quarters, from approximately USD 6.7 million to approximately USD 1.55 million. Around 78 per cent of the new shares will be held by the Company’s two largest shareholders and by its directors, management and employees, whom are existing, long-standing investors in INQ.
The holders are converting approximately USD 5.15 million of principal, together with approximately USD 0.28 million of accrued interest (USD 5.43 million in total), into 811,913,347 new shares in INQ Group AB at a conversion price of SEK 0.06 per share (at the fixed exchange rate of SEK 9.05 per USD under the loan agreement). Of the amount converted by UK employees, a portion corresponding to 7,133,042 shares is being settled in cash to meet tax withholding obligations and is not included in the number of new shares set out above.
Holders of approximately 97.2 per cent of the aggregate principal amount outstanding under Tranches 1 to 5 have elected to convert. The balance remaining outstanding under the convertible loan is held across Tranches 4, 5, 6 and 7.
Including the accrued interest converted, the Company’s interest-bearing debt will be reduced by approximately USD 5.43 million.
The conversion deleverages the Company and transforms the quality of its balance sheet. It involves no material cash outflow for the Company and reduces the Company’s future interest costs. The Board of Directors believes that a stronger balance sheet improves the Company’s position in the ongoing discussions with commercial partners and suppliers and provides a stronger platform for future growth. The two largest shareholders in the Company following the conversion are the same as the two largest shareholders prior to it.
Jonathan Faiman, Chief Executive Officer of INQ Group AB, commented:
“This conversion substantially reduces our debt and positions our company to take advantage of the strategic opportunities ahead of us. The convertible loan is largely held by existing long term shareholders who have backed the Company through its transformation. Also holding this convertible are members of our Board, our management team and our employees. With a stronger balance sheet, the Company is ready for its next phase of growth in new channels, like education, and in new geographies.”
The conversion comes as inq continue to pursue significant commercial transactions for the remainder of 2026 across its consumer and enterprise businesses.
The LAMY Edition inq-01 is progressing towards commercial availability ahead of the holiday selling period, building on the first commercial order announced earlier this year. inq is also preparing inventory of its own products ahead of the holiday period as the Company focuses on increasing product availability and supporting consumer demand.
Kevin Adeson, Chairman of INQ Group AB, commented:
“The significance of this conversion is the alignment it creates. With a substantially stronger balance sheet, INQ is moving from building the foundations of its strategy towards commercial execution across products, partnerships and enterprise opportunities. The holders of the convertible understand this and want to be in a position to benefit from the value creation.”
The conversion will result in the issuance of 811,913,347 new shares, increasing the total number of shares in the Company from 1,102,362,753 to 1,914,276,100. As resolved by the annual general meeting on 31 July 2026, the new share issues are carried out together with a reduction of the share capital by SEK 77,165,392.71, lowering the quota value of each share from SEK 0.13 to SEK 0.06 so that it does not exceed the conversion price, followed by a bonus issue of SEK 77,165,392.71 without issue of new shares and a further reduction of the share capital to the extent required for the quota value to correspond to a whole number of öre.
Following registration, the Company’s share capital will amount to SEK 191,427,610.00, corresponding to a quota value of SEK 0.10 per share, and the sequence entails no reduction of the Company’s share capital.
The new shares are issued in two steps resolved on different legal bases. 184,731,709 of the new shares are subscribed for by members of the Board of Directors, employees and contractors under the directed issue with payment by set-off resolved by the annual general meeting under item 14(d), being an issue to the category of persons covered by Chapter 16 of the Swedish Companies Act. The remaining 627,181,638 new ordinary shares are issued to holders who have requested conversion and who do not belong to that category, together with the conversion of a cash investment made by one member of the Board of Directors in his capacity as a lender, pursuant to a resolution of the Board of Directors on 6 October 2026 under the authorisation granted by the annual general meeting under item 14(c), with payment in each case by way of set-off of the claim represented by the relevant convertible note.
The total number of shares following the conversion is divisible by 100 in preparation for the 1:100 reverse share split resolved by the annual general meeting. The Company intends to carry out the reverse share split as soon as practicable after the new shares have been registered and delivered to the converting holders, following which the Company will have 19,142,761 shares in issue.
The conversion is being undertaken in accordance with the terms of the convertible loan agreement, the directed set-off issue resolved by the annual general meeting held on 31 July 2026 and the authorisation granted to the Board of Directors by that meeting to resolve on the issue of new shares to enable conversion.
Following registration of the new shares with the Swedish Companies Registration Office, the conversion will be reflected in the Company’s registered share capital and number of shares.
For further information, please contact:
Jonathan Faiman
Chief Executive Officer
INQ Group AB (publ)
About INQ Group AB
INQ Group AB (publ) is a Swedish technology company developing intelligent digital writing solutions that connect natural handwriting with modern digital workflows. The INQ platform combines connected writing hardware, software and AI-enabled capabilities across consumer, enterprise and education markets.
This information is information that INQ Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 8 October 2026 at 07:45 CEST.
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