Moberg Pharma secures SEK 336 million from TO 2 and directed issue to top guarantors - 98% subscription rate

STOCKHOLM, June 24, 2024  -- Moberg Pharma has announced that 17,776,856 warrants from the 2023:1 series ("TO 2") were exercised, resulting in the subscription of an equal number of ordinary shares. This action raised approximately SEK 320 million, achieving a subscription rate of roughly 98%. Additionally, the board of directors decided on a directed issue of 863,333 ordinary shares for SEK 16 million to fulfill top guarantee commitments, bringing the total funds raised to approximately SEK 336 million before issue costs.

The CEO of Moberg Pharma, Anna Ljung, highlighted the success of this financial strategy. Originally designed to raise SEK 200 million, the effort exceeded expectations by securing SEK 336 million. Ljung emphasized that the results demonstrate the company’s robust market position and are expected to promote both growth and shareholder value. She also mentioned that the TO 2 warrants have helped enhance the shareholder base. The company now plans to focus on the launch of their drug MOB-015, which has received approval in 13 EU countries. Their partner Allderma has already positioned the product as a market leader in Sweden under the brand Terclara®. Ljung welcomed the new shareholders and expressed optimism about the company's future endeavors.

The exercised warrants have been converted to interim shares until the new ordinary shares are registered with the Swedish Companies Registration Office. These interim shares, which are not subject to organized trading, are expected to convert to ordinary shares around July 5, 2024. The exercise price of the warrants was set at 70% of the average volume-weighted trading price on Nasdaq Stockholm from May 20 to May 31, 2024, resulting in a subscription price of SEK 18.00 per share.

When the new shares are registered, Moberg Pharma’s total number of shares and votes will be 47,879,854, and the share capital will amount to approximately SEK 47,879,856.39. This leads to a dilution of about 39% based on the new total number of shares and votes.

The June 11 announcement from Moberg Pharma also mentioned that the subscription of ordinary shares under the top guarantee commitments would be carried out through a directed share issue. With 17,776,856 warrants exercised, the board resolved to issue 863,333 shares to the top guarantors, including Special Situations Fund, Fredrik Lundgren, and Wilhelm Risberg. The subscription price for these shares was the same as for TO 2, SEK 18.00 per share.

The board examined the option of raising capital through a rights issue but concluded that ensuring the exercise of TO 2 and conducting the Share Issue was more advantageous. This approach was preferred due to the volatile market conditions, which could have increased the costs of underwriting a rights issue. Additionally, the company aimed to expand its base of institutional and professional shareholders to improve liquidity.

The subscription price in the Share Issue was determined through negotiations with institutional and professional investors, involving the company’s financial advisor, Vator Securities AB. The board believes that the subscription price is fair and reflects current market conditions. All shares in the Share Issue were subscribed and allotted to the investors who entered top guarantee commitments.

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