Integrum has carried out a directed new issue of 961,539 series B shares, raising proceeds of approximately SEK 50 million

Mölndal, Sweden – 13 June 2024 – Integrum AB (publ) (Nasdaq First North Growth Market: INTEG B) (“Integrum” or the “Company”) has successfully carried out an issue of 961,539 new series B shares, at a subscription price of SEK 52 per share, raising proceeds of approximately SEK 50 million (the “Directed Issue”).

The Board of Directors of Integrum has, in accordance with the issue authorization granted by the annual general meeting on 27 September 2023, and as indicated in the press release by the Company earlier today, resolved on a directed issue of 961,539 new series B shares at a subscription price of SEK 52 per share, consequently raising gross proceeds of approximately SEK 50 million. The subscription price in the Directed Issue has been determined through an accelerated book building procedure, which is why the assessment of the Board of Directors that the subscription price will accurately reflect the current market conditions and demand.

A number of Swedish and international institutional investors participated in the Directed Issue, including Adrigo Asset Management, Nolsterby Invest AB and Rhenman & Partners Asset Management AB.

Integrum intends to use the net proceeds from the Directed Issue for investments into commercial resources and distribution, as well as for clinical affairs and continued product portfolio expansion. This includes:

• Intensification of commercial efforts within the US market, to advance targeting of relevant trauma centers, CPOs and surgeons.
• Acceleration of market access in other nascent and new potential markets (EU and RoW), together with funding of working capital requirements to secure availability for end-customers and facilitate growth in selected markets.
• Expansion of product portfolio and addressable indications in the US, including investments in regulatory affairs for the submission of the PMA application for transhumeral (above-elbow) and transtibial (below-knee) amputations, as well as strengthen and accelerate research and product development capabilities for next-generation products.

The Directed Issue entails a dilution of 5.0 percent of the total number of outstanding shares and 3.8 percent of the votes in Integrum. Through the Directed Issue, the number of outstanding shares will increase by 961,539 series B shares from 18,435,289 to 19,396,828 (of which 640,000 series A shares and 18,756,828 series B shares). The share capital will increase by SEK 67,307.73 from SEK 1,290,470.23 to SEK 1,357,777.96.

Due to strong demand and to enable Integrum to meet any such demand, Pericardium AB, a company controlled by Rickard Brånemark, CEO and founder of Integrum, has divested 150,000 existing series B shares in the Company at the same price as in the Directed Issue. Rickard Brånemark has expressed his continued long-term commitment to the Company as its CEO and founder and as a majority shareholder. The Company will not receive any proceeds from a potential sale of existing shares.

The Board of Directors of the Company has deemed, after an overall assessment and careful consideration, that a new share issue with deviation from the shareholders’ preferential rights was a more justified alternative for the Company’s shareholders than a rights issue and that it was in the best interest of both the Company and its shareholders. The Board of Directors’ assessment was based on the fact that the Directed Issue enabled the Company to raise capital quickly and efficiently, which in turn provides a flexibility to capture investment opportunities available to the Company in the short term, as well as to benefit from the perceived interest in the Company’s share among institutional investors and broaden the institutional investor base. Conversely, a rights issue would likely have led to a prolonged process and delayed investments for the Company, along with greater market risk, adverse impact on share price and higher dilution for non-participating shareholders.

In connection with the Directed Issue, the Company has agreed not to, with customary exceptions, issue any shares for a period of 90 days after the settlement date of the Directed Issue. In addition, Company shareholders within the Company’s Board of Directors and management team, have agreed not to sell any shares in Integrum for a period of 90 days after the settlement of the Directed Issue. In addition, Rickard Brånemark has agreed not to sell any shares for a period of 180 days after the settlement of the Directed Issue, subject to customary exceptions.

Advisers

Carnegie Investment Bank has acted as Sole Global Coordinator and Bookrunner in connection with the Directed Issue. Setterwalls Advokatbyrå AB has acted as legal adviser in connection with the Directed Issue.

This disclosure contains information that Integrum AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 13-06-2024 22:25 CET.