Moberg Pharma Secures Warrant Exercise and Free Top Guarantee

Moberg Pharma AB, a Swedish pharmaceutical firm, has secured financial commitments amounting to approximately SEK 113.5 million. These commitments come from a mix of external professional investors and the company's primary shareholder, Östersjöstiftelsen, and are associated with the company's warrants of series 2023:1 ("TO 2"). CEO Anna Ljung noted that these commitments fulfill the company's goal from a previously designed rights issue to raise around SEK 200 million, half of which was to be achieved through TO 2 warrants.

The company aims to utilize any additional capital raised through these warrants to promote growth and shareholder value. The scheme also aims to strengthen Moberg Pharma's shareholder base, alongside the ongoing support from Östersjöstiftelsen. Ljung emphasized that securing this financing allows the company to focus on the launch plans for their drug, MOB-015, which has recently been approved in 13 EU countries and is marketed in Sweden under the brand name Terclara® by their partner Allderma.

There are a total of 18,134,519 TO 2 warrants, each allowing the holder to subscribe to one new ordinary share in Moberg Pharma at SEK 18.00 during the period from June 5th to June 19th, 2024. The company plans to announce the outcome of this exercise around June 24th, 2024. If all TO 2 warrants are fully exercised, Moberg Pharma expects to raise approximately SEK 326.4 million before issue costs.

Östersjöstiftelsen has indicated its intention to exercise 1,388,888 TO 2 warrants to subscribe to ordinary shares worth about SEK 25.0 million. Moberg Pharma has also entered into commitments totaling SEK 10.8 million with several external professional investors, including the Special Situations Fund from the U.S., Fredrik Lundgren, and Wilhelm Risberg. Additionally, top guarantee commitments amounting to SEK 77.7 million have been made, intended to be utilized to at least 20 percent.

These commitments will be executed through a directed share issue, as resolved by the Board, based on the authorization given at the Annual General Meeting on May 14th, 2024, after the exercise period for TO 2 ends. The subscription price for shares in this issue will be SEK 18.00 per share, the same as for TO 2. Those investors with top guarantee commitments are guaranteed allotment of ordinary shares equivalent to at least 20 percent of their respective commitments.

The Board assessed that raising capital through a rights issue currently presents higher costs due to volatile market conditions, and opted for the more advantageous method of ensuring the exercise of TO 2 and carrying out the Share Issue. This approach also aims to expand and solidify the company's base of institutional and professional shareholders, thereby improving the liquidity of its shares.

The subscription price for the Share Issue has been determined following arm's length negotiations with various investors, ensuring it reflects current market conditions fairly. The Board intends to finalize the Share Issue based on the Annual General Meeting's authorization around June 24th, 2024, following the announcement of TO 2's exercise results. Should all TO 2 warrants be fully exercised, the company's share capital could increase by approximately SEK 18,134,519.90. The Share Issue could further raise the share capital by up to SEK 4,316,666.22, resulting in a potential dilution effect of about 12.9 percent, increasing the total number of shares by up to 18,997,852.

Vator Securities is serving as the financial advisor, and Advokatfirman Schjødt as the legal advisor to Moberg Pharma for this transaction.