Gapwaves AB (publ) (“Gapwaves” or the “Company”) has secured guarantee commitments covering approximately 90 percent of a rights issue of units of approximately SEK 62.5 million (the “Rights Issue”). Following the start of high-volume production for Valeo, the proceeds will mainly be used to accelerate the industrial scale-up and commercial expansion of the Company’s waveguide antennas for automotive radar. The Rights Issue is subject to authorization from an Extraordinary General Meeting on 10 November 2026, after which the Board is expected to formally resolve on the Rights Issue around 13 November 2026.

Gapwaves’ full press release is available here.

Background and rationale
Gapwaves is in an expansion phase where the Company’s long-term investments in technology and industrialization are translating into commercial progress and rapidly increasing production volumes. During 2026, the Company has started high-volume production for Valeo at Frencken Group in China, expanded its production capacity on the back of high demand and signed a five-year series production agreement with the Chinese Tier 1 supplier Desay SV, a strategic step into the Chinese market. Gapwaves has also received an initial development order from Valeo for next-generation radar sensors, with production scheduled to start in 2030.

Gapwaves has previously announced that the total annual volume of antennas based on its waveguide technology, including licensed production, is expected to increase from approximately 4.5 million in 2026 to approximately 10 million in 2027. According to the Company, this creates opportunities for increased sales, improved margins and enhanced profitability. The Rights Issue aims to accelerate this development by strengthening the Company’s commercial capacity, streamlining the supply chain and speeding up the commercialization of next-generation antenna technology.

In parallel, Gapwaves is expanding into defense-related radar and counter-unmanned aerial systems (C-UAS), where its industrialized waveguide technology combines high radar performance with cost-effective volume production. The Company was recently awarded SEK 1.7 million from Vinnova for a drone defense radar demonstrator, and intends to use part of the proceeds to establish a scalable growth platform in the defense sector.

The net proceeds will be allocated as follows: approximately 33 percent to accelerated commercial scale-up, approximately 12 percent to improved margin potential, approximately 22 percent to the new defence growth platform and approximately 33 percent to commercialising the next generation of waveguide antennas.

Gapwaves’ CEO Jonas Ehinger comments:
“Over the past year, Gapwaves has taken decisive steps in its commercial development. We have moved from technology development and industrialization to a stage where our technology is now being used in mass-produced vehicles and manufactured in high volumes in collaboration with leading international partners. We have secured new mass-production agreements, expanded our industrial capacity and created a strong platform for continued growth.

We are now in a phase where we are set to accelerate further. Our focus is on significantly increasing volumes, strengthening margins and translating our commercial progress into a growing and long-term profitable business. At the same time, we see significant opportunities to take our proven and already industrialized technology into new markets. In the fields of defense-related radar and drone defense, we see a highly attractive opportunity to establish a new growth platform where our combination of high technical performance and cost-effective high-volume production can create significant competitive advantages.

The planned Rights Issue is a proactive step to give Gapwaves further financial strength and the freedom to take advantage of the business opportunities ahead of us and accelerate our path towards sustainable profitability. Through a rights issue, we are giving our existing shareholders the opportunity to continue to be part of the journey as we now step up the pace of Gapwaves’ growth, whilst welcoming new investors to become part of the next phase.”

Key terms
The Rights Issue is covered to approximately 90 percent by guarantee commitments from Schonfeld Global Master Fund L.P. (SEK 20.0 million) and Aqurat Fondkommission AB (SEK 36.7 million). Each unit consists of two new class B shares and one warrant. The subscription price will be 70 percent of the volume-weighted average price of the share before the Board’s resolution, within a range of SEK 8.00 to SEK 12.00 per share. The subscription period is expected to run from 24 November to 8 December 2026.

About Gapwaves
Gapwaves develops wireless solutions based on patented waveguide technology for millimeter-wave applications. Its products are primarily used in antennas for radar systems enabling autonomous driving and advanced safety solutions in the automotive industry. The technology is also suited for industrial automation, telecommunications, smart cities and civil-military applications. Gapwaves was founded in 2011 from research at Chalmers University of Technology and is listed on Nasdaq First North Growth Market under the ticker GAPW B.

Corpura is acting as Sole Coordinator and Bookrunner in connection with the Rights Issue.

For more information contact:
Christopher Sebök
Phone: +46 (0)72-995 43 97
Email: christopher.sebok@corpura.se