Rights Issue 2023

The board of LIDDS AB (publ) (“LIDDS” or the “Company”) has decided on a rights issue of approximately SEK 48.6 million before deductions for transaction costs (the “Rights Issue”). The rights issue primarily intends to finance the preparation of two phase Ib clinical studies and the execution of at least one of the studies, an intensified work with the out-licensing of the phase III project Liproca® Depot and other business development, as well as repayment of the bridge financing the Company raised from Erik Penser Bank to start these investments before the implementation of the Rights Issue. To enable further capital contributions, the board may exercise an over-allotment option of up to approximately SEK 15.0 million (“Over-allotment option”). If the Over-allotment option is exercised in its entirety, the maximum capital contribution amounts to approximately SEK 63.6 million.

Summary

• One (1) existing share in LIDDS held on the record date of January 18, 2023 entitles to one (1) subscription right. One (1) subscription right entitles for subscription of one (1) newly issued share.

• The subscription price amounts to SEK 1.40 per share. Payment must be made in cash.

• Through the Rights issue, a maximum of approximately SEK 48.6 million can be added to LIDDS before issue costs, which are estimated to amount to approximately SEK 8.6 million.

• The subscription period runs during the period 23 January – 6 February 2023.

• Subscription rights that are not exercised during the subscription period become invalid and lose their value. Trading in subscription rights is planned to take place on the Nasdaq First North Growth Market during the period January 23 – February 1, 2023.

• The rights issue means that the Company’s share capital increases by a maximum of approximately SEK 1,841,208.92, corresponding to a maximum of 34,739,791 shares, implying a maximum dilution of approximately 50 percent.
• In the first place, allotment of shares subscribed without the support of subscription rights shall take place to subscribers who also subscribed for shares with the support of subscription rights. Alternatively, allocation of shares subscribed without the support of subscription rights must be made to others who subscribed without the support of subscription rights. In the third and final instance, allocation of shares subscribed without the support of subscription rights shall be made to those who have contractually entered into a guarantee undertaking in the capacity of issue guarantors. To the extent that allocation in full cannot take place according to pro rata in any step as above, allocation shall be by lottery.
• Notice of the extraordinary general meeting will be published separately.

The rights issue is covered by guarantees and subscription commitments corresponding to a total of approximately SEK 46.5 million, corresponding to approximately 96 percent of the total amount. Issue guarantees have been agreed in writing. For the issue guarantees, both the bottom and top guarantors, a commission of twelve (12) percent of the guaranteed amount is paid in cash compensation, alternatively twelve (12) percent of the guaranteed amount in the case of compensation in the form of new shares in the Company. The guarantees are not secured by bank guarantee, blocking funds, pledging or similar arrangements.

Complete conditions and instructions for the Rights Issue as well as other information about the Company will be shown in the EU growth prospectus which is expected to be published around January 17, 2023. The timetable is preliminary and may change.

Preliminary schedule for the Rights Issue