Cline Scientific: The new issue closes on July 12

Cline Scientific AB's Rights Issue closes tomorrow, July 12. The rights issue gives existing shareholders the right to subscribe for two new shares for each share owned for SEK 0.24 per share. If it is fully subscribed, the issue can add approximately SEK 9.25 million before issue costs, which are calculated at SEK 0.6 million. The minimum limit for completing the issue is set at SEK 5.5 million, which means that if the issue is not subscribed to this level, the issue will not be carried out.

The money raised in the issue will primarily be used for our stem cell therapy project StemCART. This is run with a renowned group of advisors from Gothenburg University and with the support of orthopedic surgeons at Sahlgrenska University Hospital and Halland Hospital Varberg. The project has reached the latter part of the pre-clinical phase where it is relevant to start the preparations for the clinical development. In the project, the following has happened in recent times:

 

The European patent for StemCART

Just a few days ago, we displayed our certificate for the European patent in the StemCART project. This is important value creation in the company. A method patent provides intellectual property protection for the method used to grow and control the stem cells to become chondrocytes (cartilage cells). This includes the technique of growing the cells in a laboratory environment, modifying their properties, differentiating them into cell types, and using them for the medical application of healing damaged cartilage.

 

Letter-of-intent with NesctGen

In April, we told you about the letter-of-intent we signed with the company NecstGen, a CDMO and competence center for cell and gene therapy. A CDMO (Contract Development and Manufacturing Organization) within ATMP (Advanced Therapy Medicinal Products) plays a critical role in supporting and facilitating advances in advanced therapies.

 

The board and management subscribe for shares in the company

As previously communicated, both the board and management will participate in the issue.

 

Valuation of the company

With a subscription price of SEK 0.24 per share, the valuation of Cline Scientific AB will be SEK 4.6 million before the completed issue. Based on today's rate. SEK 0.38 per share, this means a discount of 36.8 percent.

Conditions for the new issue
The issue price is SEK 0.24 per share.

The issue comprises a maximum of 2,171,946 shares of series A and a maximum of 36,370,502 shares of series B. To complete the issue, at least 27,500,000 shares must be subscribed. Otherwise, the issue is terminated, and the subscription proceeds are returned to the respective subscribers.

Shares that are not subscribed with pre-emptive rights shall be allocated primarily to those who subscribed for shares with the support of subscription rights and who wish to subscribe for additional shares, (regardless of whether they were shareholders on the record date or not), pro rata their subscription with the support of subscription rights, and, in insofar as this cannot happen, by drawing lots. After that, any remaining shares must be distributed to the new investors who subscribed to the issue.

The new shares that are added to the issue are entitled to a dividend for the first time on the record date for the dividend that falls closest after the new shares have been entered in the share register at Euroclear Sweden AB.

Schedule for the rights issue

• Subscription period 26 June – 12 July 2023.
• Subscription with preferential rights takes place by payment no later than July 12, 2023.
•  Subscription without preferential rights can take place during the same period.
• Trading in BTA of series B will take place from and including the day the company ascertains that the minimum limit for the completion of the issue has been reached, which is estimated to be 19 July 2023 until the shares are registered with the Swedish Companies Registration Office, which is estimated to take place at the beginning of August 2023. Should if the minimum limit for the completion of the issue is not reached, the issue proceeds will be repaid in full via the respective subscriber's representative.

The memorandum and application forms for subscription can be obtained from Clines website www.clinescientific.com and Nordic Issuing's platform www.nordic-issuing.se.

For questions about Cline Scientific and the rights issue, please contact:
Hanne Evenbratt, CEO

Email: [email protected]

Phone: +46 704 88 79 23