The decision follows constructive discussions in which the evolving market dynamics, current and future product-line potential, and the parties' respective strengths have been taken into consideration. The proposed amendment facilitates a more dynamic partnership without exclusivity and minimum purchase quantities for Altium.

Altium will continue to play a key role in regions where it has a strong presence - Central and Eastern Europe, North America, Turkey and Azerbaijan. In these territories, Altium will remain actively involved through its dedicated sales, marketing, and back-office support teams.

Importantly, the amendment empowers PHI to bring selected sales and marketing functions in-house while enabling the Company to conduct high-margin direct sales and engage in distribution partnerships beyond Altium.

"The new partnership arrangement will allow us to act faster, compete smarter and create more value. Over time, we anticipate that this change will position PHI as a high-performance, growth-oriented company," says Patrik Eschricht, CEO of PHI.

According to the Swedish Securities Council's ruling 2019:25, certain related-party transactions shall be submitted to the general meeting for approval. Transactions that must be approved are transactions that, together with other transactions carried out with the same related party during the past year, relate to a value of at least SEK 1 million and correspond to at least one percent of the Company's value (calculated as total market capitalization). The distribution agreement with Altium constitutes a related party transaction to the Company due to the fact that the Company's chairman, Goran Dubravčić, is also the CEO of Altium.

A notice for the Extraordinary General Meeting will be announced through a separate press release. More information regarding the proposed distribution agreement will be included in the notice, and the Board of Directors will prepare a report on the transaction in accordance with the Swedish Securities Council's statement 2019:25, including information in detail, which will be published on the Company's website no later than two weeks before the Extraordinary General Meeting.

"During our discussions, we identified a clear need for PHI to enhance its sales organization and establish a more robust commercial structure. Through strategic initiatives and close collaborations, the Company has sharpened its market approach while developing a scalable product platform for growth beyond PHI's current market. I'm proud to say that PHI is now fully equipped when reclaiming responsibility for its sales operations, with renewed energy and a strong platform to accelerate future expansion," says Goran Dubravčić, CEO of Altium and Chairman of PHI.