Pharma Equity announced a private placement to issue 3.25% convertible subordinated convertible term loan for the gross proceeds of DKK 8,914,795 on January 22, 2024. The loan is granted as subordinated loan capital and is therefore subordinated to the company's other creditors, except for any other corresponding subordinated loan capital. The lenders right to convert the loan into shares in in the company may be exercised for a period of 30 days commencing 23 calendar months after the conclusion of the convertible loan.

The loan bears interest of 3.25 % per quarter and remains without instalment until the expiry of the Exercise Period, after which the company must repay the loan including interest within 60 days, however, the company may extend the loan period by 12 months. The company may choose to pay the loan including interest in shares. Subject to conversion of the loans note to new shares, such new shares will be without pre-emption rights for the company's existing shareholders and with the same rights as the company's existing shares.

The new shares will be admitted to trading on Nasdaq Copenhagen. The subscription rate of the conversion will be par rate, meaning that an amount of DKK 1.00 will be converted into one new share of DKK 1.00 in the company. The maximum increase of the share capital pursuant to the convertible loan is an amount of DKK 12,627,691.

The transaction has been approved by the shareholders of the company.