The subscription period in Polymer Factory’s rights issue begins today

Today, 24 February 2023, is the first day of the subscription period in Polymer Factory Sweden AB’s (“Polymer Factory” or the “Company”) rights issue of shares with pre-emptive rights for existing shareholders (the “Rights Issue”). The public is also given the opportunity to subscribe for shares in the Rights Issue. The subscription period runs until, and including, 10 March 2023. The Rights Issue can, if fully subscribed, provide the Company with a maximum amount of approx. SEK 8.8 million before deduction of transaction related costs. Approx. 70 percent of the Rights Issue is secured in writing through pre-subscription and underwriting commitments. The memorandum and teaser are available on Polymer Factory’s (www.polymerfactory.com), Sedermera Corporate Finance AB’s (www.sedermera.se), Nordic Issuing AB’s (www.nordic-issuing.se) and Spotlight Stock Market’s (www.spotlightstockmarket.com) respective websites.

Background

Since its listing on Spotlight Stock Market in 2021, Polymer Factory has focused on the process of strengthening the organization as well as increasing sales. The Company not only closed the year 2021 with increased revenues but also launched a new product segment, BowtieD®. During the first half of 2022, Polymer Factory primarily focused on expanding the team and deepening relationships with customers, while continuing to engage new leads. On the product development side, Polymer Factory progressed with the product launch of Dendritic Nanogel (DNG) in Q4 2022 as a future competitor to liposome carriers and organic/inorganic nanoparticle carriers as well as the expansion of the SpheriCal® calibrant platform. During Q4 2022, the net sales in Polymer Factory rose to approx. SEK 1 million, compared to the same period the previous year when turnover was approx. SEK 759,000. In December 2022, Polymer Factory received certification for its quality management system (ISO 13485) – an internationally recognized standard designed to be used by organizations involved in design and manufacturing of medical devices and related services. The ISO-certification underlines the quality in the Company’s work in developing products.

Motive

To finance future objectives and growth, Polymer Factory has decided to conduct a Rights Issue of shares. The Offer can provide the Company with a total of approx. SEK 8.8 million, before the deduction of transaction related costs. The proceeds are intended to finance a continued acceleration of sales by, among other things, increased sales and marketing activities, employment of an additional sales resource, expansion of the organization by adding resources to meet increased demand and continue to build and maintenance the Company’s portfolio of IP rights and ISOs.

The offer in brief

• Subscription price: Price per share is SEK 1.60.
• Issue volume: The offer comprises a maximum of 5,488,316 shares, corresponding to approx. SEK 8.8 million (before issue costs of approx. SEK 1.8 million if fully subscribed).
• Number of shares before the Rights Issue: 6,860,398 shares.
• Valuation (pre-money): Approx. SEK 11.0 million.
• Pre-subscription & underwriting commitments: The Company has received pre-subscription and underwriting commitments up to an amount of approx. SEK 6.1 million, corresponding to approx. 70 percent of the total issue volume.
• Lock-up agreements: Members of the Board of Directors and Management, who own approx. 69 percent of the shares in Polymer Factory, have agreed to enter lock up agreements. According to the agreements, these parties undertake to not sell 90 percent of their current shareholdings and any additional shares acquired in the issue. The lock up period is valid for six months following the day after the subscription period has ended.
• The ISIN-code for the share: SE0015244470.
• Dilution: For existing shareholders, a maximum dilution of 44.4 percent will be recognized through the Rights Issue, if fully subscribed.

Important dates

• Record date: Was on 22 February 2023.
• Subscription period: From 24 February 2023 until 10 March 2023.
• Trading in subscription rights: From 24 February 2023 until 7 March 2023.
• Announcement of the final outcome of the Rights Issue: Expected on 14 March 2023, or as soon as possible after the subscription period ends.
• Trading in BTA (Betald Tecknad Aktie): From 24 February 2023 until the Rights Issue has been registered with the Swedish Companies Registration Office. The last day of trading in BTA will be announced through a separate press release.