NeoDynamics Interim Report Jan-March 2024

First Quarter 2024

• Revenues amounted to SEK 497 (318) thousand, of which SEK 103 (97) thousand were net sales.

• Net loss amounted to SEK -17,755 (-23,233) thousand.

• Loss per share amounted to SEK -0.06 (-0.19).

• Cash and cash equivalents amounted to SEK 7,425 (5,366 prior year) thousand.

 
Significant events during the quarter

• NeoDynamics held an Extraordinary General Meeting on the 2 February 2024, where its shareholders resolved on a reverse share split of 1:100, an ammendment of the articles of association and a rights issue of shares of approximately SEK 25 million.

• In February 2024, Anna Eriksrud announced her desire to retire.

• NeoDynamics announced the outcome of the Rights Issue. A total of 25,360,828 shares were subscribed, corresponding to 100 percent of the Rights Issue. In total, 11,296,852 shares were subscribed for with subscription rights, corresponding to approximately 44.5 percent of the Rights Issue. 1,128,114 shares were subscribed for without subscription rights, corresponding to approximately 4.4 percent of the Rights Issue. The remaining shares issued through the Rights Issue were subscribed for by Salénterprise, amounting to 12,935,862 shares, corresponding to approximately 51.0 percent of the Rights Issue. Through the Rights Issue, NeoDynamics will receive approximately SEK 25 million before issue costs and set-off of loans.

• In March 2024, NeoDynamics announced the appointment of Matilda Salén as CEO.

 
Significant events after the end of the quarter

• NeoDynamics announced the final outcome regarding the exercise warrants of series TO3. On 2 February 2024, the extraordinary general meeting (the "EGM") resolved on a reduction of NeoDynamics' ("NeoDynamics" or the "Company") share capital in order to reduce the quota value to 0.40 SEK, to enable the recently completed rights issue ("Rights Issue"). Consequently, an additional recalculation, in addition to the recalculation announced by the Company on 19 February 2024, was made regarding the warrants of series TO3 in accordance with the terms of the warrants of series TO3. Against this background, the new subscription price was 0.97 SEK per share, and as a result of a reverse share split resolved on by the EGM, one hundred (100) series TO3 warrants were required to subscribe for one (1) new share.

• NeoDynamics announced that Salénterprise had increased its shareholding in the company through the exercise of its guarantee commitments for the Rights Issue to 39.5%.

• NeoDynamics announced that Salénterprise submitted a cash tender offer to the shareholders of NeoDynamics AB (publ) to transfer all shares in NeoDynamics to Salénterprise for SEK 1.00 in cash per share.

• The Board of NeoDynamics announced that due to the variability in the outcome regarding the companies future value, they have chosen not to advise the shareholders in their decision regarding the bid price. In addition, the board would like to point out that Salénterprise is working toward a delisting of the company, and aims to reach the 90% voting threshold to secure such an event.

CEO Comment

Commercialisation Continues

It was a great honour for me to join NeoDynamics in March, and I am excited about the opportunity and responsibility to take NeoDynamics to the next level in close cooperation with the Board and the Management Team in our pursuit to advance the diagnosis and care of cancer. Our main product, NeoNavia® is an innovative biopsy system for ultrasound-guided tissue sampling, that provides better results and experiences for both patients and physicians. We have now built the platform that enables us to grow sales, excite customers, and prove the value of both the product and the company.

US commercialisation in progress
During Q1, we have been actively engaged in processes with leading hospitals and cancer centres across the US, and both our needles are being used clinically as we are moving pilots forward. Additionally, several hospitals have confirmed their willingness to write and publish whitepapers in 2024 based on their positive experiences and successful pilot studies.

First repeat orders received in Europe
In Europe, we have received our first repeat orders, and we are starting to see conversion of pilot studies to commercial use. However, the conversion is happening at a slightly lower pace than anticipated due to the delay in needle availability experienced last year. The needle availability issues have also caused several pilot extensions, in order to give centres adequate time to test and get familiar with the full system.

We currently have over 20 pilots running in all markets, and over half of them with end dates in late Q2. We remain hopeful that many of them will convert into commercial accounts. Our confidence in the UK is particularly strong as we are already seeing COMPULSE Study sites starting to adopt CorePulse and VacuPulse needles in addition to the FlexiPulse probes used in the study.

All three needles are available and in stock in all targeted markets and the feedback received in relation to the needle improvements implemented last year is overwhelmingly positive. This includes for example the general sturdiness of the CorePulse needle and the sampling ability of the VacuPulse needle.

Financing update
To secure funding for operations in Europe and the commercial launch of NeoNavia® in the US, we have raised capital in several steps during 2023 and in the beginning of 2024. In March 2024, we completed a Rights Issue of approximately SEK 25m before transactions costs and set-off of loans. We continue to have full focus on balancing cost and cash against available financing options.
 
May 6th, 2024, Salénterprise AB, NeoDynamics’ largest shareholder after the Rights Issue in March, made a takeover bid for all the shares in the company. The bid offers 1 SEK in cash for each share. The Board and Management are pursuing a long-term solution that will secure sufficient capital to Europe and the US. This includes a potential sale of the company or partnership with a larger industry player, who has a natural strategic fit with NeoNavia®, as well as the resources and commercial setup to drive sales in key markets in a meaningful way.
 
CEO Matilda Salén

The report in full is attached as a pdf file to this press release and can also be found on the company's website on the following link: https://www.neodynamics.com/en-gb/reports

Report Presentation

To accompany the release of the Q1 report, we'll be conducting a report interview via Redeye. This video will be recorded on Wednesday the 8th in the afternoon and will be released on Friday the 10th in the morning, and will only be released as a recording. However, during the interview, we'll be addressing questions from shareholders and other stakeholders. If you have any questions you'd like us to address, please send them to NeoDynamics' info email, [email protected], before 10:00 am on Wednesday.