Moberg Pharma secures warrant exercise and enters top guarantee - June 11, 2024

June 11, 2024 -- Moberg Pharma AB (publ) ("Moberg Pharma" or the "Company") has secured subscription intentions and commitments amounting to approximately SEK 113.5 million for the warrants of series 2023:1 ("TO 2"). This capital comes from a few external professional investors and the Company's largest shareholder, Östersjöstiftelsen (The Baltic Sea Foundation).

Last summer, Moberg Pharma designed a rights issue of units targeting around SEK 200 million, with half expected to come from TO 2 warrants. CEO Anna Ljung expressed satisfaction with securing this capital, noting that additional funds from the TO 2 warrants are anticipated to support growth and enhance shareholder value. She highlighted the importance of continued support from their main shareholder and the company’s plans to focus on launching their drug MOB-015, recently approved in 13 EU countries and marketed in Sweden as Terclara® by their partner Allderma.

The Company has 18,134,519 TO 2 warrants, each allowing the holder to subscribe for one new ordinary share at SEK 18.00 between June 5th and June 19th, 2024. Should all TO 2 warrants be exercised, Moberg Pharma would raise about SEK 326.4 million before issue costs. Östersjöstiftelsen has committed to exercising 1,388,888 TO 2 warrants, equivalent to approximately SEK 25.0 million.

Additionally, Moberg Pharma has secured subscription and top guarantee commitments from external investors including Special Situations Fund, Fredrik Lundgren, and Wilhelm Risberg. In total, these commitments are valued at approximately SEK 10.8 million for subscriptions and SEK 77.7 million for top guarantees. These guarantees will be used at a minimum of 20 percent, about SEK 15.5 million, and may increase if TO 2 utilization is less than 17,271,186 ordinary shares.

Subscriptions under the top guarantee commitments will take place through a directed share issue ("Share Issue") authorized by the Board of Directors following the Annual General Meeting on May 14th, 2024. Shares in this issue will also be priced at SEK 18.00. Investors with top guarantee commitments are assured at least 20 percent of their respective commitments. The Share Issue size will depend on TO 2 warrant holders' actions, allowing warrant holders the opportunity to limit the Share Issue size by exercising TO 2.

Moberg Pharma's Board considered various capital-raising methods and concluded that securing TO 2 exercise and conducting the Share Issue without shareholder preferential rights is currently more advantageous. A rights issue in the current volatile market could incur higher underwriting costs.

The Board's overall assessment justifies ensuring TO 2 exercise and carrying out the Share Issue, outweighing reasons for preferential rights issues. The subscription price in the Share Issue has been determined with financial advisor Vator Securities AB, reflecting market conditions and demand. The Board plans to resolve the Share Issue around June 24th, 2024, after TO 2 exercise outcomes are revealed. Full exercise of TO 2 warrants will increase the Company's share capital by approximately SEK 18,134,519.90, and the Share Issue could add up to SEK 4,316,666.22 more, resulting in a dilution effect of around 12.9 percent. The total number of shares could increase by a maximum of 18,997,852 shares.

Moberg Pharma, a Swedish pharmaceutical company, focuses on commercializing proprietary innovations, with its key asset MOB-015, a topical treatment for onychomycosis, approved in 13 EU countries. The company's shares are listed on Nasdaq Stockholm’s Small Cap list.

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