NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO
The Board of Directors of
Summary of the Convertible Issue
- The Convertible Issue consists of 260 convertibles at a nominal value of
SEK 100,000 per convertible (the “Convertibles”). The subscription price shall be equal to the nominal value of the Convertibles with a deduction of a set-up fee of 3.95 percent. - The Convertibles carries an annual interest rate of 10 percent of their nominal value.
- The term of the Convertibles is 12 months with a maturity date on
December 20, 2022 , to the extent conversion has not taken place before such date. - The conversion price will either be (i) same price as other investors in a potential capital raise conducted before 2022-05-22, or (ii) 10-day VWAP prior to conversion request date.
With a conversion price based on 10-day VWAP and at full conversion of the Convertibles, calculated as of the date of this announcement, the dilution would amount to approximately 10.7 percent, meaning that the Company’s share capital would increase by
The terms and conditions for the convertible loan, including the conversion price, have been established after arms’ length negotiations with
The Company intends to use the net proceeds from the Convertible Issue for further advancement of KL1333 and provide bridge financing as the Company continues discussions with investors and potential strategic partners. The reasons for the deviation from the shareholders’ preferential rights is to be able to carry out a capital raise in a timely and cost-effective manner from the major shareholders. The Board of Directors believes that it is advantageous for the Company and for the Company's owners to capitalize on the flexibility to raise capital on favourable terms and in a timely and cost-effective manner from the major shareholders. The Board of Directors therefore believes that the Convertible Issue will promote value creation for all shareholders of the Company.
Advisors
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