Share Dilution

AlzeCure completes offset issuance as part of ACD440’s Phase II entry and Acturum Life’s investment in the company

As part of ACD440, a drug candidate focused on the treatment of peripheral neuropathic pain, will soon start its planned phase IIa study, AlzéCure Pharma will, in accordance with previous agreements, make a milestone payment to the previous owner Acturum Life AB. According to a new amendment between the parties, Acturum Life will receive shares in AlzéCure Pharma instead of a cash payment and this will take the form of a clearing issue.

“The offset issuance strengthens the company’s liquidity and we are delighted that Acturum Life has chosen to demonstrate its confidence in AlzeCure and to actively support the further clinical development of ACD440”, said Martin Jönsson, CEO of AlzeCure Pharma AB.

“Thus, we choose to invest in promising development work at AlzeCure,” says Peter SjostrandPresident of Acturum Life AB.

ACD440, a TRPV1 antagonist and AlzeCure’s drug candidate for neuropathic pain within the company’s Painless platform, has in a previous phase Ib study shown positive proof-of-mechanism data, i.e. an analgesic effect in man. It was also well tolerated as a topical gel on the skin, indicating good suitability for further clinical development as a local treatment for neuropathic pain.

The transaction in brief
A compensation issue, in accordance with this decision, is, in the opinion of the Board, beneficial for the company and its shareholders because a long-term strengthening of the financial situation of the company takes place. Overall, the issue would contribute to creating value for all of the company’s shareholders.

The issue price is SEK3.55which is based on the volume-weighted average price over the period March 23 to April 5, the last 10 trading days preceding the decision. This will result in a 1.7 percent dilution. The number of shares increased by 845,070 shares, corresponding to an increase in share capital of SEK21,126.75. The total number of shares after issuance will be 50,733,365 shares and the share capital will amount to SEK 1,268,334.125 after registration with the Swedish Companies Registration Office. Acturum Life AB has the right to subscribe. The subscription for newly issued shares will take place within five days of the Board’s decision.

Context and use of net cash
The board believes that an offsetting issue that strengthens the company’s cash flow and financial position enables related investments that the company has identified. AlzeCure’s projects are in an active development phase and this is a good opportunity to strengthen the Company’s financial situation. The capital provided will be used for studies already communicated and planned, including the upcoming phase II study with ACD440.

To advise
Erik Penser Bank AB is the issuing institution and Synch Advokat AB is AlzeCure’s legal counsel in this matter.