Rights issue
2024

1. What is this?

Answer: Oncopeptides has announced that it is carrying out a fully guaranteed rights issue of approximately SEK 300 million with the support of our major shareholders. We are doing it because we have a need for capital to get us to 2026, when we expect to be profitable.

2. What will the money be used for?

Answer: For those who have followed us recently, it is hopefully clear that our absolute focus is on commercialization in Europe, and that is also where the money will go.

In addition to that, we will also continue to drive the development of our pipeline forward, while we also continue to work to find markets outside Europe for Pepaxti, however, it is not something that drives particularly much costs as we work towards partnerships.

3. What does a rights issue entail?

Answer: A rights issue is a way for a company to raise more money and through selling more shares, with preferential rights to current shareholders. The idea is a bit like a “first dib” for those who have already invested in the company.

To make it fair, the chance of buying is based on how many shares you already own. For example, if you own 10% of the company, you’ll get the chance to buy 10% of the new shares first. This gives current owners a chance not to have their share diluted, i.e. their ownership does not decrease in percentage because there are more shares available after the issuance.

To ensure that the rights issue is successful, the issue price is set below the current share price. Existing shareholders will thus receive a “discount” on the newly issued shares. A shareholder can choose between either participating in the rights issue or selling the subscription rights. Otherwise, the “discount”, the difference between the share price and the issue price, is lost. If the shareholder chooses not to subscribe for the rights issue, the shareholding in the company is also reduced.

4. How does the issue affect my current ownership?

Answer: Provided that a shareholder chooses to subscribe for the issue, the ownership will remain with the same percentage as before of all the company’s shares.

5. What is the subscription price for new shares?

Answer: The final terms of the rights issue, including the subscription price and the number of newly issued shares, will be resolved by the Board of Directors no later than five business days prior to the record date for the rights issue and then be published in a prospectus. The prospectus is intended to be published on 17 April.

6. How is the subscription price determined?

Answer: The subscription price for a new share issue is determined through a combination of several factors, including the market’s valuation and demand from investors.

7. Why aren´t the terms immediately available?

Answer: The short answer is that we want to let the market have a hand in the pricing of the stock. This is a common arrangement where the exact price for participating in the rights issue is not set until closer to the extraordinary general meeting and when the subscription period is to begin. The reason for this is that we want the discount to be appropriately sized for the issue, and this can be assessed with greater certainty closer to the transaction being completed.

To ensure that the new share issue is successful, the issue price is typically set below the current share price, i.e. existing shareholders thereby receive a “discount” on the newly issued shares. A shareholder can choose between either participating in the rights issue or selling the subscription rights. Otherwise, the “discount”, the difference between the share price and the issue price, is lost. If the shareholder chooses not to subscribe for the rights issue, the shareholding in the company is also reduced.

8. Will it be possible to sell my subscription rights/to buy more subscription rights?

Answer: Yes – it will be possible to trade subscription rights on Nasdaq Stockholm between April 19 and April 29.

9. What happens if I don’t choose to sign up for my rights?

Answer: Existing shareholders should, if they do not choose to subscribe, sell their subscription rights before April 29, as the value of the rights will otherwise be lost.

10. How has the company’s management positioned itself in the rights issue? Will they attend?

Answer: The vast majority of the company’s management has undertaken to participate in the issue.

11. What is an ordinary stock? Do I have it?

Answer: Yes, all regular shareholders have what is commonly referred to as common stock.

12. What is a BTA?

Answer: In the context of a rights issue, BTA stands for “Paid Subscribed Share”. When an investor chooses to participate in a rights issue and subscribes for new shares, it may take some time before the new shares are registered with the Swedish Companies Registration Office and the investor is formally registered as the owner of the shares. During this period, between payment and registration, the investor receives BTAs as proof that the shares have been subscribed and paid for, but not yet registered.

BTAs gives the investor a right to receive the actual shares in the future. These paid and subscribed shares will be traded on the stock exchange between April 19 and May 13, giving investors the opportunity to buy or sell their BTAs before they are converted into ordinary shares, after the issue has been registered and the shares have been issued. This is done to provide liquidity and flexibility for those participating in the issue.

13. When will the prospectus be published?

Answer: A prospectus with the final terms of the rights issue, including the subscription price and the number of newly issued shares, will be published on April 17.

11. Where can I find more information and details about the rights issue?

Answer: Prior to any investment decisions, please refer first and foremost to the prospectus that will be approved and published in connection with the rights issue and be available on our website, under Investors. You can also contact the company’s Head of Investor Relations, David Augustsson.