Photocure ASA - Contemplated Private Placement

OSLO, Norway, June 24, 2020 /PRNewswire/ -- Photocure ASA ("Photocure" or the "Company") has retained ABG Sundal Collier ASA and DNB Markets, a part of DNB Bank ASA as Joint Bookrunners (collectively referred to as the "Managers") to advise on and effect a contemplated private placement directed towards Norwegian and international investors, subject to and in compliance with applicable exemptions from relevant prospectus or registration requirements (the "Private Placement"). The Company is contemplating to issue up to 2,500,000 new shares in the Company (the "Offer Shares") corresponding to approximately 10% of the current outstanding shares in the Company, of which 98,300 Offer Shares will be issued and sold following exercise of fully vested employee options.

The Company intends to use the net proceeds from the Private Placement (i.e. net of transaction costs and employer's contributions triggered by the option exercise) to i) create and scale up a world-class marketing, sales, and distribution infrastructure after transfer of the business previously owned and managed by Ipsen; ii) finance growth and working capital, including expansion in underserved countries and new geographies currently not served by Photocure or Ipsen; iii) explore new product opportunities / development, and new geographies for Hexvix/Cysview to expand and secure its market position; and iv) general corporate purposes.

In addition to the contemplated Private Placement, the Company has agreed a three-year term loan with Nordea, secured under the State Guarantee Scheme to further strengthen the financing of the abovementioned use of proceeds.

As communicated in connection with the first quarter 2020 reporting, Photocure experienced near term temporary pressure on revenue due to COVID-19 impact. The Company has seen a rebound over recent weeks building comfort on the expectation of steady return to growth in second half 2020. Photocure has implemented strict cost control in line with the activity level in second quarter 2020. The 2023 group guidance remains firm on group revenue ambitions in the range of NOK 1 billion with EBITDA margins of approximately 40%.

The subscription price and the number of Offer Shares to be issued in the Private Placement will be determined by the board of directors of the Company (the "Board") following an accelerated bookbuilding process. The application period for the Private Placement will commence on 24 June 2020 at 16:30 hours CEST and is expected to close on 25 June 2020 at 08:00 hours CEST. The Company, after consultation with the Managers, reserves the right to at any time and in its sole discretion resolve to close or to extend the application period or to cancel the Private Placement in its entirety without further notice. If the Application Period is shortened or extended, any other dates referred to herein may be amended accordingly.