Vicore has carried out a directed share issue of 10,000,000 shares at a subscription price of SEK 20 per share, raising gross proceeds of SEK 200 million

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STOCKHOLM, Dec. 8, 2022 /PRNewswire/ -- Vicore Pharma Holding AB (publ) ("Vicore" or the "Company"), a pioneer in the development of angiotensin II type 2 receptor agonists (ATRAGs), has completed a directed share issue of 10,000,000 shares at a subscription price of SEK 20 per share (the "Directed Issue"), through which the Company receives SEK 200 million before transaction costs. The subscription price was determined through an accelerated book-building procedure conducted by Carnegie Investment Bank AB (publ) ("Carnegie"), Pareto Securities AB ("Pareto Securities"), Van Lanschot Kempen N.V. ("Van Lanschot Kempen") and Zonda Partners AB ("Zonda") as Joint Bookrunners (together the "Joint Bookrunners").

The Directed Issue
The board of directors of Vicore has, based on the authorization to issue shares granted by the annual general meeting on 11 May 2022 and as announced by the Company through a press release yesterday, resolved on a directed issue of 10,000,000 shares at a subscription price of SEK 20 per share, consequently raising gross proceeds of SEK 200 million. The subscription price per share represents a discount of approximately 8.7 percent compared to the closing price on Nasdaq Stockholm on 7 December 2022. The subscription price in the Directed Issue was determined through an accelerated book-building procedure led by the Joint Bookrunners and was, accordingly, in the assessment of the board of directors set on market terms and conditions.

Investors in the Directed Issue include both existing and new shareholders such as HBM Healthcare Investments AG, HealthCap VII L.P., Invus Public Equities LP, Medical Strategy, Swedbank Robur Fonder, The Fourth Swedish National Pension Fund, Cicero Fonder and SEB Investment Management.

Vicore intends to use the net proceeds from the Directed Issue to:

• Finance preparations for Phase 2b trial in idiopathic pulmonary fibrosis (IPF) including scale-up and manufacturing whilst continuing and completing the IPF AIR trial.
• Prepare commercial launch of the ALMEE^TM, a digital therapeutic (DTx) for patients with pulmonary fibrosis.
• Accelerating the development of the ATRAG platform (angiotensin II type 2 receptor agonists) and advance the preclinical pipeline.
• General corporate purposes and extending the cash runway to Q4 2024

Prior to the Directed Issue, the Company's board of directors has made an overall assessment and carefully considered the possibility to raise capital through a rights issue. The board of directors considers that the reasons for deviating from the shareholders' preferential right are (i) that a rights issue would take a significantly longer time to complete and entail a higher risk for a materially adverse effect on the share price, particularly in light of the market volatility and the challenging market conditions, (ii) to diversify and strengthen the Company's shareholder base with Swedish and international institutional investors and to strengthen the share's liquidity, (iii) to carry out a directed share issue can be made at lower costs and with less complexity than a rights issue and in light of the market volatility, the board of directors has assessed that a rights issue would also require a rather significant underwriting from a guarantor syndicate that would entail additional costs and/or additional dilution depending on the type of remuneration for such underwriting, and (iv) to ensure a strong balance sheet in the prevailing market situation. Considering the above, the board of directors has made the assessment that a directed share issue with deviation from the shareholders' preferential right is the most favourable alternative for Vicore, creates value for the Company and is in the best interest of the Company's shareholders. The board of directors thus considers that the reasons outweigh the default option that new issues are to be carried out with preferential rights for the shareholders.