Translation: Original published in Finnish on 12/12/2025 at 8:10 am EET.

We believe this new brand partnership is a positive addition to Spinnova's network of partners and will support the long-term outlook for demand of fiber produced using the company's technology. However, we do not believe that the agreement will have a significant financial impact in the near future. Reducing technology investment and production costs and identifying technology investment partners continue to play a key role in the company's commercialization efforts.

SPINNOVA® fiber planned to be used in ARMEDANGEL's collections

Spinnova announced yesterday that it had signed a letter of intent with German fashion brand ARMEDANGELS to secure access to fiber volumes in the future. This is a non-binding agreement for securing SPINNOVA® wood-based fiber. ARMEDANGELS therefore intends to develop future collections using SPINNOVA® fiber. According to ARMEDANGELS, however, it will take time to introduce materials to its collections, though the company sees potential in SPINNOVA® fiber as an alternative to cotton.

Partnership sends positive signal, but commercialization progress requires wins on multiple fronts

We believe that this new agreement is a positive sign that Spinnova's technology and fiber continue to attract clothing brands emphasizing sustainability. However, this is a non-binding letter of intent, and the press release did not disclose the volumes or other commercial terms of the agreement (in any case, Spinnova's current pre-industrial scale plant in Jyväskylä is unable to deliver large volumes). In our view, this cooperation aligns well with Spinnova's current strategy, in which brand partnerships primarily support technology sales and strengthen the demand base for materials for operators or consortia considering potential technology investments.

Nevertheless, the agreement does not prompt any immediate changes to Spinnova's estimates or the risk profile of the share. Therefore, in our view, our forecasts for Spinnova's very low revenue in 2025– 2026 and a slightly reduced, but still significant, operating loss due to savings from last year remain in the right direction. Regarding the commercialization of the technology, a key component of the company's investment story, the most critical factors remain reducing the technology's investment and production costs, finding parties interested in investing in the technology, and convincing them of the commercial potential of fiber production.