Press release Oncology Venture establishes a convertible note program of 100 million SEK

Hørsholm, Denmark (31 March 2020) – Oncology Venture A/S (“OV” or the “Company”) today announced that is has established a convertible note program of 100 Million SEK. The issuance of the convertible bonds is in the full control of Oncology Venture.

The convertible note agreement is with Negma Group LTD and Park Partners GP (the “Investor”) in order to support Oncology Venture's development and commercialization of its prioritized pipeline of cancer drugs. If Oncology Venture fully utilizes the convertible note program, the company will have sufficient financing to fund its planned activities for 2020.

“I am really happy that we have been able to establish such a flexible and relatively simple financing, where Oncology Venture is in full control of the facility and can solely decide when to exercise. The convertible note program also gives the company the necessary liquidity, so we can focus on bringing our 3 prioritized development programs forward in 2020 to the planned value inflection points,” said Steve Carchedi, CEO.

“We are excited to enter into this agreement with Oncology Venture, as we have carefully analysed the investment case and have found both the current valuation and timing to constitute a great opportunity. We are convinced that Oncology Venture will maintain its current fast-phased momentum on its path towards commercialization, and we are proud to fuel the company’s important mission to develop precision treatments for cancer patients,” say in a joint statement Elaf Gassam, Chairman of Negma Group and Aurora Lidman, Executive Sales Scandinavia of Park Partners GP.

The main conditions and structure of the program are:

• The convertible note program runs for 24 months, during which time Oncology Venture can solely decide to call in 10 tranches of 10 million SEK against issuing convertible notes to the Investor.
• The Investors will have the right to convert their convertible notes within a 12-month period following the registration of the notes with the Danish Business Authority. In case of an event of default, the Investor will have the right to request the reimbursement of the convertible notes in cash and/or or refuse to subscribe for additional tranches.
• The convertible notes are a zero coupon note and will be issued at a subscription price corresponding to their par value (i.e. SEK 100,000). 
• The conversion price will be determined as 95% of the lowest closing volume weighted average (VWAP) share price of the 7 consecutive trading days prior the receipt of a conversion request.
• No collateral is attached to the convertible notes.
• The costs for Oncology Venture are 10 % of the total commitment of SEK 100 million, excluding legal and administrative costs.

The issuance of shares in connection with the convertible notes will require an authorization from the shareholders of Oncology Venture planned to be resolved at the Annual general meeting on April 22, 2020.