SynAct Pharma AB retains subscription rights for series TO 1subscription option

Members of the Board of Directors and management have extended lock up contracts

SynAct Pharma AB (“SynAct”) can today announce that members of the Board of Directors and Management through a subscription agreement in writing have agreed to utilise all of their respective subscription options. The total subscription commitments amount to SEK 430,195.20. SynAct can also announce that members of the Board of Directors and management of the company have chosen to extend the lock-up agreements that were signed in connection with the company’s listing on Aktietorget in July 2016, which extend until 11 July 2017. Shares that are newly subscribed by contract for subscription commitments relating to series TO 1 subscription options are subject to lock-up agreements. The extended lock-up agreements now extend until 11 July 2018.

Subscription commitments relating to Series TO 1

SynAct has received subscription commitments regarding the utilization of subscription options from the Chairman of the Board of Directors Torbjørn Bjerke (via GLCapital AB), board member and CSO Thomas Jonassen (via TJ Biotech Holding AB), board member Lars Adlersson, board member Charlotte Edenius, CEO Jeppe Øvlesen (via Quantass ApS) and CFO Henrik Stage (via Next Stage Venture ApS). The total subscription commitments amount to SEK 430,195.20. This means that SynAct received subscription commitments corresponding to approximately 3.3 percent of the total amount that series TO 1 subscription options can bring.

Extension of lock-up agreements

Members of the Board of Directors and management of SynAct have chosen to extend the lock-up agreements that were signed in connection with the company’s listing on Aktietorget in July 2016, and which extend until 11 July 2017. With the extended agreements, the lock-up agreements now extend until 11 July 2018, in total 24 months from the first trading day on Aktietorget on 11 July 2016. The parties that have extended the lock-up agreements are the Chairman of the Board of Directors Torbjørn Bjerke (via GLCapital AB), board member and CSO Thomas Jonassen (via TJ Biotech Holding AB), CEO Jeppe Øvlesen (via Quantass ApS) and CFO Henrik Stage (via Next Stage Venture ApS). Through the lock-up agreements, the above parties commit to retaining at least 90% of their respective party’s holdings in the company. The lock-up agreements also include the acquisition of, and new subscription to, shares in the company that each shareholder makes during the period from signing the agreements to extend the lock up until 11 July 2017. Thus, the extended lock-up contracts covered by the holding the party held on 11 July 2017. Shares that are newly subscribed by contract for subscription commitments relating to series TO 1 subscription options are subject to lock-up agreements.

CEO Jeppe Øvlesen comments

“The fact that we have received subscription commitments totalling approximately SEK 430,195.20 – about 3.3 percent – is very important to us and shows that we have a Board of Directors and management that have great faith in what we do. In addition, we have extended our lock-up agreements. Since none of us intends to dispose of our shares, it was not a difficult choice to extend our respective lock-up agreements. The agreements reflect our long-term commitment and at the same time show our faith in the company. The capital raised for SynAct via the subscription options is intended to carry out complementary research into other indications in addition to psoriatic arthritis.”

Series TO 1 subscription options

Synact’s series TO 1 subscription options were issued in connection with the company’s issue during the spring of 2016 before listing on Aktietorget and can raise a maximum of SEK 12.9 million for the company before issue costs. Each series TO 1 subscription option entitles the holder to subscribe to a new share in SynAct at a subscription price of SEK 6.40 per share. The utilisation period take place from 9 March 2017 until 23 March 2017. The company intends to use the capital that SynAct raises via the redemption of subscription option to finance complementary research into other indications, in addition to the primary indication for AP1189. The issue the company carried out in May 2016 prior to the listing on Aktietorget secured financing of the planned clinical development of the company’s candidate drug (Phase I and II study). The results of the Clinical Phase I study are expected to be available at the end of 2017. The company’s ambition is to then carry out a phase IIa study, and to then sign commercial agreements with one or more major pharmaceutical companies.

For information regarding series TO 1 subscription options, please contact:

Sedermera Fondkommission
Telephone: 040-615 14 10
E-mail: info@sedermera.se

Sedermera Fondkommission is acting as a financial advisor to Synact for the subscription option redemption.

For further information about SynAct Pharma AB, please contact:

Jeppe Øvlesen                                                                                                 Henrik Stage

CEO, SynAct Pharma AB                                                                           CFO, SynAct Pharma AB

Telephone: +45 28 44 75 67                                                                    Telephone: +45 40 26 09 00
E-mail: joo@synactpharma.com                                                             E-mail: hs@synactpharma.com

This is information that SynAct Pharma AB is obliged to disclose under the EU’s market abuse regulation. The information was submitted by the above contact person for publication on 9 March 2017.