Pressreleaser | 26 Oct 2022 | Scandinavian Chemotech

Scandinavian ChemoTech AB announces outcome in rights issue

”The fact that, despite the current financial climate, we were able to attract so many people to subscribe to the issue is very gratifying. With this funding, we get the opportunity to continue the commercialization within both Animal and Human Care, while at the same time giving room for continued clinical studies. It is now of the utmost importance that we continue to collect clinical data and experience with TSE as a treatment option and at the same time study the immunotherapeutic effects that we create. We see potential for significant commercial success together with our current and new distributors in the near term and focus on delivering on the business opportunities that lie ahead. Our financial strategy is to extend/replace existing credits or find alternative solutions. Creating continued value for global cancer care as well as for our new and existing shareholders is of the highest priority.” says Mohan Frick, CEO Scandinavian ChemoTech AB.   

The subscription period in the Rights Issue ended on October 21, 2022. The outcome shows that a total of 2,384,449 units have been subscribed for through the Rights Issue and the Company will thus receive approximately SEK 14.9 million before issue costs, of which approximately SEK 0.7 million through offset of loans. Upon full exercise of all warrants of series TO3, the Company may be provided with an additional capital injection of up to approximately SEK 29.8 million after the exercise period that runs from and including April 11, 2023, up to and including April 24, 2023.

Allotment of units subscribed for without the support of unit rights has taken place in accordance with what is stated in the prospectus that the Company published on September 29, 2022, due to the Rights Issue (the ”Prospectus”). Notification of such allotment is announced separately through settlement notes. Nominee-registered shareholders receive notification of allotment in accordance with instructions from the respective nominee.

Through the Rights Issue, the number of shares in the Company increase by 2,384,449 shares, divided on 328,333 A-shares and 2,056,116 B-shares, from 9,629,055 shares, divided on 1050 000 A-shares and 8579 055 B-shares to 12,013,504 shares, divided on 1,378,333 A-shares and 10,635,171 B-shares. The share capital will increase with SEK 1,192,224.50, from SEK 4,814,527.50 to SEK 6,006,752.00. If all warrants of series TO3A and TO3B are fully exercised for subscription of new shares in the Company, the number of shares in the Company will increase with an additional 2,384,449 shares, divided on 328,333 A-shares and 2,056,116 B-shares, from 12,013,504 shares, divided on 1,378,333 A-shares and 10,635,171 B-shares to 14,397,953 shares, divided on 1,706,666 A-shares and 12,691,287 B-shares. The share capital will increase with an additional SEK 1,192,224.50, from SEK 6,006,752.00 to SEK 7,198,976.50. Each warrant of series TO3A entitles the holder to subscribe for one (1) new A-share in the Company. Each warrant of series TO3B entitles the holder to subscribe for one (1) new B-share in the Company. The subscription price for shares supported by the warrants of series TO3A and TO3B amounts to seventy (70) percent of the volume-weighted average price (VWAP) of the Company’s B-share on Nasdaq First North Growth Market during the period from and including March 23, 2023, up to and including April 5, 2023, however a minimum of the share’s quota value and a maximum of SEK 12.50 per share.

Trading with BTU (Paid Subscribed Unit) takes place on Nasdaq First North Growth Market until the conversion of BTU into shares and warrants after the Rights Issue has been registered with the Swedish Companies Registration Office. Registration with the Swedish Companies Registration Office is expected to take place during week 44, 2022. Trading in the new B-shares and warrants of series TO3B are expected to commence on Nasdaq First North Premier Growth Market on or about November 16, 2022.

Full terms and conditions for the warrants of series TO3A and TO3B are available on the Company’s website, www.chemotech.se

Advisors

Mangold Fondkommission AB is the financial advisor to ChemoTech in connection with the Rights Issue. Moll Wendén Advokatbyrå is the legal advisor to ChemoTech in connection to the Rights Issue.

For more information, please contact:

Mohan Frick, CEO

Tel: +46 (0)10-218 93 00

E-mail: ir@chemotech.se

Certified Adviser: Erik Penser Bank, Tel: Corporate Finance AB, Tel: +46 8-463 80 00,

E-mail:certifiedadviser@penser.se

This disclosure contains information that ChemoTech is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 26 October 2022 21:00 CET.

Scandinavian ChemoTech AB (publ)

ChemoTech is a Swedish medical technology company based in Lund that has developed a patented technology platform to offer cancer patients access to a new treatment alternative, Tumour Specific Electroporation™ (TSE), available for treatment of both humans and animals. There are a large number of cancer patients whose tumours for various reasons cannot be treated by conventional methods but where TSE can be a solution. Therefore, the company continuously evaluates new opportunities and areas of application for the technology. ChemoTech’s shares (CMOTEC B) are listed on Nasdaq First North Growth Market in Stockholm and Erik Penser Bank is the company’s Certified Adviser. Read more at: www.chemotech.se.

Important Information

Release, announcement or distribution of this press release may, in certain jurisdictions, be subjectto restrictions according to law and people in those jurisdictions, in which this press release has beenannounced or distributed, should inform themselves of and follow such legal restrictions. This pressrelease does not constitute an offer, or a solicitation of any offer, to buy or subscribe for anysecurities in ChemoTech in any jurisdiction. Invitation to the persons concerned to participate in the RightsIssue will only take place through the EU growth prospectus which the Company intends to publishin connection with the Rights Issue.

This press release does not constitute or form part of an offer or solicitation to purchase or subscribefor securities in the United States. The securities referred to herein may not be sold in the UnitedStates absent registration or an exemption from registration under the US Securities Act of 1933, asamended. The information in this press release may not be announced, published or distributed, directly or indirectly, in whole or in part, inor into the United States, Australia, Hong Kong, Japan, Canada, New Zealand,Switzerland, South Africa, South Korea or in any other jurisdiction where the announcement, publication ordistribution of the information would not comply with applicable laws and regulations.

Within the European Economic Area, no offer is made to the public of securities in any country otherthan Sweden. In other Member States of the European Union, such an offer may only be made inaccordance with the exceptions in the Prospectus Regulation (EU) 2017/1129.

This press release contains certain forward-looking information that reflects the Company’s presentview of future events as well as financial and operational development. Words such as ”intend”,”assess”, ”expect”, ”may”, ”plan”, ”believe”, ”estimate” and other expressions entailing indicationsor predictions of future development or trends, not based on historical facts, constitute forward-lookinginformation. Forward-looking information is inherently associated with both known andunknown risks and uncertainties as it depends on future events and circumstances. Forward-lookinginformation is not a guarantee of future results or development and actual outcomes may differmaterially from the statements set forth in the forward-looking information.