NeuroVive Decides on a Rights Issue for Continued Drug Development

LUND, Sweden, Feb. 15, 2018 /PRNewswire/ -- NeuroVive Pharmaceutical AB(publ)(Nasdaq Stockholm: NVP, OTCQX: NEVPF) announces that the Board of Directors of NeuroVive Pharmaceutical AB (publ) ("NeuroVive" or "the Company") on 15 February 2018 resolved, subject to approval by the Extraordinary General Meeting, to issue shares and warrants with preferential rights for existing shareholders ("Rights issue"). Upon full subscription to the Rights issue, the Company will receive approximately MSEK 78.5 before issuance costs. In full exercise of the warrants issued in the Rights issue, the Company will receive an additional MSEK 37.3 before issuance costs.

The proceeds from the Rights issue will mainly be used to finance the further clinical development of KL1333 and preparing for the start of clinical Phase II efficacy study of NeuroSTAT, as well as to the Company's other drug development projects in pre-clinical phase.

The decision requires approval at an Extraordinary General Meeting to be held on 22 March 2018. See separate press release with notice of the Extraordinary General Meeting for further information.

The Rights issue in brief

• Shareholders in NeuroVive have the preferential right to subscribe for units. One (1) existing share held on the record date of 5 April 2018, entitles to three (3) unit rights. Sixteen (16) unit rights entitles to subscription of one (1) unit consisting of four (4) new shares and one (1) warrant without consideration of series 2018:1.
• The subscription price is SEK 8 per unit, corresponding to SEK 2 per share.
• At full subscription of the Rights issue, NeuroVive is added approximately MSEK 78.5 before issuance costs.
• One (1) warrant of series 2018:1 entitles the holder to subscribe for one (1) share in the Company at a subscription price of SEK 3.80 during the period from 1 November 2018 until 30 November 2018.
• At full utilization of the warrants, NeuroVive will receive approximately another MSEK 37.3 before issuance costs.
• The issue is guaranteed to 70 percent through guarantee commitments.
• The subscription period runs from 10 April - 24 April 2018.

"NeuroVive has an exciting year ahead. Through a successful Rights issue, we will be able to take several important steps in our clinical development projects, NeuroSTAT and KL1333, for both of which new clinical studies are set to start in 2018. In addition, we will be able to take other drug development projects to critical milestones," says NeuroVive's CEO Erik Kinnman.