LIDDS issues shares to guarantors after the completed rights issue

Regulatory

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, BELARUS, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA, SWITZERLAND, RUSSIA, THE UNITED STATES OR ANY OTHER JURISDICTION, WHERE SUCH ACTIONS ARE SUBJECT TO LEGAL RESTRICTIONS. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER REGARDING ANY SECURITIES IN LIDDS AB. SEE ALSO THE “IMPORTANT INFORMATION” SECTION BELOW.

LIDDS AB (publ) ("LIDDS" or the "Company") announces that the Company's board today, with the support of the authorization from the extraordinary general meeting on January 9, 2023, decided to issue 257,142 shares as guarantee compensation directed to a number of the guarantors who provided guarantee commitments in the rights issue that the Company carried out during the period 23 January to 6 February 2023, in accordance with the guarantee agreements entered into.

The guarantors who provided guarantee commitments in the rights issue had the option of having the compensation paid out in cash or in the form of newly issued shares in the Company, which was previously communicated in connection with the rights issue. In total, three guarantors have chosen to have the guarantee compensation paid out in shares. As a result, the company's board has today decided, with the support of the authorization from the extraordinary general meeting on January 9, 2023, to issue 257,142 shares as compensation to these guarantors, which will increase the company's share capital by approximately 13,628.53 SEK. The reasons for the deviation from the shareholders' preferential right were to enable a successful capital acquisition and to fulfill the guarantee agreements entered into.

The shares are issued at a price of 1.40 SEK per share, which corresponds to the subscription price in the rights issue and is therefore considered market-based in the board's judgment. All shares in the directed issue have been subscribed for and allocated, and the board has decided that payment shall be made by offsetting the respective guarantor's claim on the Company amounting to a total of 360,000 SEK. When these 257,142 shares together with the 33,234,730 shares that were issued in the rights issue have been registered with the Swedish Companies Registration Office, the number of shares in the Company will amount to 68,231,663 shares, and the Company's share capital to approximately 1,848,174.06 SEK. The dilution resulting from the directed issue to the guarantors amounts to approximately 0.4 percent after the rights issue has been registered.

The company has had no specific costs related to the directed issue as this takes place as part of the work on the rights issue. However, the cash part of the guarantee compensation that the Company needs to pay out is reduced to approximately 4.7 MSEK, from previously 5.0 MSEK.

Advisors

Erik Penser Bank AB is financial advisor to LIDDS in connection with the share issue and Setterwalls Advokatbyrå AB is legal advisor.

For additional information, please contact

Anders Månsson, CEO
Phone: +46 (0)70 860 47 38
E-mail: anders.mansson@liddspharma.com
 
Jenni Björnulfson, CFO
Phone: +46 (0)70 855 38 05
E-mail: jenni.bjornulfson@liddspharma.com

LIDDS’ Certified Adviser is Redeye AB

LIDDS in brief:

LIDDS is a Swedish drug delivery company based on the proprietary technology NanoZolid®. With NanoZolid®, LIDDS can formulate drugs for local/intratumoral administration, with a maintained and controlled release for up to six months. The technology is versatile, can be used across different drug classes and can solve problems within many indication areas, mainly within oncology. LIDDS offers the NanoZolid® technology to partners and has developed its own pipeline focused on oncology, where the technology enables delivery of a local and high drug dose, administered over time with very limited side effects. LIDDS has a broad pipeline with several projects in clinical development, both in early and late-stage clinical phase, and projects about to enter clinical development. The company is listed on Nasdaq First North Growth Market.

Important information

The information in this press release neither contains nor constitutes an offer to acquire, subscribe or otherwise trade in shares, warrants or other securities in LIDDS. No action has been taken and no action will be taken to permit an offer to the public in any jurisdictions other than Sweden.

This press release may not be published or distributed, directly or indirectly, in or to Australia, Belarus, Canada, Hong Kong, Japan, New Zealand, Russia, Switzerland, Singapore, South Africa, the United States or any other jurisdiction where such action in whole or in part is subject to legal restrictions, or would require additional prospectus, registration or other measures than what follows from Swedish law. The information in this press release may also not be forwarded or reproduced in a way that is contrary to such restrictions or would entail such requirements. Actions contrary to this instruction may constitute a violation of applicable securities legislation. Neither subscription rights, paid and subscribed shares nor new shares subscribed for in the offering have been registered or will be registered under the United States Securities Act of 1933 as currently amended (“Securities Act”) and may not be offered, subscribed for, exercised, pledged, sold, resold, delivered or transferred, directly or indirectly, in or to the United States, except pursuant to an applicable exemption from the registration requirements of the Securities Act. The offer is also not directed at persons domiciled in Australia, Canada, Hong Kong, Japan, New Zealand, Switzerland, Singapore, South Africa or in any other jurisdiction where participation would require additional prospectus, registration or other measures than those that follow from Swedish law.

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LIDDS issues shares to guarantors after the completed rights issue