Customer categorization

In connection with registration on the FinReg platform (eAktiebok), FinReg needs to secure certain information in accordance with the EU Regulation for crowdfunding (EU 2017/1120 and EU 2019/1937). In order to ensure good protection for investors, FinReg will categorize and differentiate between sophisticated and non-sophisticated investors. As a non-sophisticated investor, FinReg Solutions has created a higher level of protection to ensure that investors have the knowledge to invest in crowdfunding projects.

A sophisticated investor is considered to be aware of the risks that arise when investing in crowdfunding projects and has the financial resources to avoid excessive financial consequences. If desired, FinReg can categorize a legal or natural person as a sophisticated investor. A sophisticated investor is no longer included within the investor protection frameworks offered by FinReg Solutions. These include:

• Testing of experience and knowledge (incl. warnings) and simulations of the ability to bear losses

• Protection against excessive exposure to crowdfunding projects

• Possibility to withdraw offer according to the EU regulation on the right to a reflection period

In order for FinReg to be able to make this assessment, the criteria below must be met and supporting documentation must be submitted and documented. The desire to be classified as a sophisticated investor shall also include a declaration of the loss of investor protection and a statement that the information submitted is truthful. Declaration, certificate and documentation are sent to cfbyeaktiebok@finregsolutions.se . Legal entities meeting at least one of the following: • Equity of at least EUR 100,000 • Net turnover of at least EUR 2,000,000 • Balance sheet total of at least EUR 1,000,000 Documentation: last audited financial statements Natural persons who meet at least two of the following:

• Personal gross income is at least EUR 60,000 per tax year, or a portfolio of financial instruments – defined as including funds on account and financial assets – exceeding EUR 100,000. Documentation: Credit report showing income/employment contract/host paper statement and bank statement where it is clearly visible who is holding custody/account • The person works, or has worked for at least one (1) year,  in the financial sector, in a capacity requiring knowledge of the transactions or services in question, or has held an executive position for at least 12 months in a legal person referred to in paragraph 1 below. Documentation: Employment contract, certificate of employment. Both must clearly demonstrate duties during the employment period • The person has carried out on the capital market an average of at least ten transactions of significant size per quarter during the preceding four quarters. Documentation: Transaction history including transaction amounts.