Egetis Therapeutics AB (publ) announced a private placement to issue 42,982,331 new shares at a subscription price of SEK 4 per share for the gross proceeds of SEK 171,929,324 and non convertible debt for the gross proceeds of SEK 289,892,500; aggregate gross proceeds of SEK 461,821,824 on April 27, 2023. The transaction will include participation from new investors led by Frazier Life Sciences for 38,675,501 new shares, and the existing shareholder Cidro Förvaltning AB (Peter Lindell) for 4,306,830 new shares and new investor Kreos Capital Management (UK) Limited. The transaction has been approved by the shareholders of the company.

The company is expected to receive non convertible debt in two tranches for SEK 173,935,500 in tranche A and SEK 115,957,000 in tranche B. Tranche A will be drawn down no later than November 30, 2023 and matures on April 1, 2027. Tranche B is available for draw down up until September 30, 2024 and matures on December 1, 2027. The total number of warrants that will be issued to BlackRock will depend on the utilization of Tranche A and Tranche B. Assuming full draw downs of Tranche A and Tranche B, BlackRock will be entitled to 1,090,977 warrants within Tranche A and 1,636,464 warrants within Tranche B, corresponding to 0.9 percent of the total number of shares in the Company on a fully diluted basis.

The strike price for the warrants is SEK 4.26, which has been determined based on the volume weighted average price per share in the Company during the 30-day period ending three days before entering into the loan agreement. The warrants will be subject to customary recalculation terms and shall be exercisable prior to the tenth anniversary of the date of grant. Both the convertible loan and the warrants will be issued by the Board of Directors pursuant to the authorization to issue shares, warrants and convertibles granted by the annual general meeting.

Tranche A will be made available through the issuance of a convertible loan of SEK 34,787,100 which can be converted in to shares in the Company to a conversion price of approximately SEK 5.95207 per share. In connection with the Private Placement, the Company has agreed to a lock-up undertaking, with customary exceptions, on future share issuances for a period of 90 calendar days after the settlement date of the Private Placement.