The Board of Directors in Redsense Medical AB (publ) resolves to carry out a directed share issue of approximately MSEK 9,8.

The Board of Directors in Redsense Medical AB (publ) ("Redsense" or the "Company") announces today that the Company’s Board of Directors, with the support from the authorization from the Annual General Meeting of 2023, has resolved on a directed cash issue of a maximum of 1,404,081 shares to ShapeQ GmbH at a subscription price of SEK 7 per share (the “Directed Issue”) Through the Directed Issue, the Company will receive a maximum of approximately MSEK 9,8, before deduction of costs related to the issue.

The Board of Directors has resolved that the Directed Issue of a maximum of 1,404,081 shares is directed to ShapeQ GmbH (the “Investor”). Redsense intends to use the net proceeds from the Directed Issue of a maximum of approximately MSEK 9,8 primarily to focus on the launch of the Redsense Clamp but also other commercial initiatives to accelerate the growth of Redsense.

The subscription price of SEK 7 per new share in the Directed Issue has been determined by the Company’s Board of Directors following arms-length negotiations with the Investors based on the current share price of Redsense’s shares. The subscription price corresponds to a premium of approximately 14 percent in correlation to the closing price of SEK 6.1 as of April 23, 2024. The subscription price therefore exceeds the current market-value.

The Directed Issue will increase the number of shares in the Company by a maximum of 1,404,081 shares, from 14,040,810 shares to a maximum of 15,444,891 shares, meaning an increase in the share capital by a maximum of SEK 140,408.1 from SEK 1,404,081 to a maximum of SEK 1,544,489.1 The Directed Issue entails a dilution for existing owners of a maximum of approximately 9 percent of the number of shares and votes in the Company after the Directed Issue.

The reasons for the deviation from the shareholders' preferential right are as follows. The board has carefully considered various financing alternatives, including the conditions for carrying out a rights issue instead of a directed issue. The Board of Directors considers it to be in the best interest of the Company and its shareholders to carry out the Directed Issue in order to ensure the most time- and cost-effective financing of the Company's continued development and because the conditions are not deemed to exist to carry out a rights issue on favorable terms. It is the board's overall assessment that the reasons above clearly and strongly outweigh the reasons that justify the main principle that issues must be carried out with the application of shareholders' pre-emptive rights and that an issue with a deviation from shareholders' pre-emptive rights is therefore in the interests of the Company and all shareholders.

A prerequisite for the implementation of the Directed Issue is that the Inspectorate for Strategic Products (ISP) approves the investment in accordance with The Screening of Foreign Direct Investments Act (2023:560).

The Law firm Lindahl KB is legal advisor to the Company in connection with the Directed Issue.

This information is information that Redsense Medical AB (publ) is obliged to make public pursuant to the EU's market abuse regulation. The information was submitted for publication, through the agency of the contact persons set out below on April 24, 2024, at 17:00 CEST.