Active Biotech raises SEK 43.4 million in substantially oversubscribed rights issue including exercise of over-allotment option

Active Biotech AB’s (publ) (”Active Biotech” or the “Company”) rights issue with pre-emptive rights for Active Biotech’s shareholders has been oversubscribed (the “Rights Issue”). Due to strong demand, the board of directors has resolved to exercise the over-allotment option. Through the Rights Issue and the Over-allotment Option, Active Biotech will receive proceeds amounting to approximately SEK 43.4 million before transaction costs.

“With this funding in place, we will concentrate on the clinical programs with tasquinimod in myelofibrosis as well as finding a partner for the continued clinical development of laquinimod. We are grateful for the support from both existing and new shareholders and will update the market as the projects progress,” says Helén Tuvesson, CEO Active Biotech.

Following the end of the subscription period, the results of the Rights Issue show that 681,872,586 shares, corresponding to approximately 94 percent of the shares offered, were subscribed for with subscription rights. In addition, applications to subscribe for 679,279,991 shares without subscription rights have been received. The subscription ratio in the Rights Issue was thus approximately 188 percent.

Due to the oversubscription of the Rights Issue, the board of directors of the Company has exercised the Over-allotment Option to meet additional demand from investors, issuing an additional 144,725,256 new shares. In accordance with the issue authorization for the Over-allotment Option, granted by the extraordinary general meeting in the Company held on October 23, 2024, the Over-allotment Option is carried out for the purpose of expanding the Rights Issue and the subscription price corresponds to the subscription price in the Rights Issue.

Final allotment and admission to trading of 164,638,960 shares in the Rights Issue requires a prior decision from the Inspectorate of Strategic Products in accordance with the Screening of Foreign Direct Investment Act (Sw. lag (2023:560) om granskning av utländska direktinvesteringar) (“FDI”).

Through the Rights Issue and the Over-allotment Option, Active Biotech receives proceeds amounting to approximately SEK 43.4 million, before transaction costs. As a result of the Rights Issue incl. the Over-allotment Option, provided that relevant FDI clearances are obtained, Active Biotech’s share capital increases by approximately SEK 4,484,160 to approximately SEK 6,352,560 and the total number of shares and votes increases by 868,351,540 to 1,230,164,682.

Notification of allotment of new shares subscribed without subscription rights will be given in the form of a contract note.
Trading in the new shares on Nasdaq Stockholm is expected to commence in the beginning of December 2024.

For more information, please contact:
Helén Tuvesson, CEO, +46 46 19 21 56, helen.tuvesson@activebiotech.com
Hans Kolam, CFO, +46 46 19 20 44, hans.kolam@activebiotech.com

Active Biotech AB (publ) (NASDAQ Stockholm: ACTI) is a biotechnology company that develops first-in-class immunomodulatory treatments for oncology and immunology indications with a high unmet medical need and significant commercial potential. Active Biotech currently holds three projects in its portfolio, of which tasquinimod and laquinimod are wholly owned small molecule immunomodulators with a mode of action that includes modulation of myeloid immune cell function. The projects are in clinical development for hematological malignancies and inflammatory eye disorders, respectively. The company’s core focus is on the development of tasquinimod in myelofibrosis, a rare blood cancer, where clinical proof-of-concept studies has been initiated. Also ongoing is a clinical Phase Ib/IIa study in multiple myeloma. Laquinimod is in clinical development for the treatment of non-infectious uveitis. A clinical phase I program with a topical ophthalmic formulation is ongoing to support phase II development together with a partner. The third pipeline project is naptumomab, a targeted anti-cancer immunotherapy, partnered to NeoTX Therapeutics, which is in a phase Ib/II clinical program in patients with advanced solid tumors. Please visit www.activebiotech.com for more information.

Active Biotech AB
Scheelevägen 22, SE-223 63 Lund, Sweden
Tel: +46 (0)46 19 20 00

IMPORTANT INFORMATION
The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction.

The information in this press release does not contain or constitute an offer to acquire, subscribe or otherwise trade with shares or other securities in Active Biotech. No action has been taken and measures will not be taken to permit a public offering in any other jurisdictions besides Sweden.

The information in this press release does not constitute a recommendation concerning any investor’s option with respect to the rights issue. Each investor or prospective investor should conduct his, her or its own investigation, analysis and evaluation of the business and data described in this press release and publicly available information. The price and value of securities can go down as well as up. Past performance is not a guide to future performance.

This press release is not a prospectus according to the definition in Regulation (EU) 2017/2019 (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. This press release neither identifies nor pretends to identify risks (direct or indirect) that can be connected to an investment in shares or other securities in Active Biotech. A prospectus will be prepared in connection with the rights issue and be reviewed and approved by the Swedish Financial Supervisory Authority, which is the national competent authority in Sweden with regard to the Prospectus Regulation. In order for investors to fully understand the potential risks and benefits associated with a decision to participate in the rights issue, any investment decision should only be made based on the information in the prospectus. Thus, investors are encouraged to review the prospectus in its entirety.

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FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this press release or any obligation to update or revise the statements in this press release to reflect subsequent events. Readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is required by law or Nasdaq Stockholm’s rule book for issuers.

The English text is an unofficial translation of the original Swedish text. In case of any discrepancies between the Swedish text and the English translation, the Swedish text shall prevail.