Peptonic Medical AB (publ) closes a 6 MSEK rights issue to a group of new investors

Stockholm, August 3rd,  2016. Peptonic Medical AB (publ) (“Peptonic Medical” or the “Company”) - a company developing pharmaceutical products based on oxytocin - today announced that it has completed a  rights issue of 6 MSEK (before transaction costs equivalent to 10% of the total rights issue amount ),  to a selected group of  new investors,  in accordance with the  mandate given to the Board of Directors  at  the Annual General Meeting on May 19th 2016. A total of 1 428 572 shares were issued at a subscription price of SEK 4.20 per share. This share price is equivalent to a 20.06% discount of the average volume weighted share price of the ten trading days prior to July 27th, which was the subscription agreement day.  The Peptonic Medical Board of Directors considers this share price to be justified considering this group of new investors and the current market conditions.

The shares were issued to a group of investors that have not previously invested in the Company. Some of these investors subscribed for the shares through their own companies. In the table below, the names of the investors and number of subscribed shares are presented.

Proceeds from this rights issue will be used to start the preparations of the clinical phase 3 programme as well as to start preparing and conducting a pilot study on a new medical indication that is protected by patents proprietary to the Company. Further information regarding this study preparation will be given in the autumn.

The reasons for deviating from the preferential rights for existing shareholders to participate in this rights issue are to expand the shareholder base of the company and that a rights issue with preferential rights would have required the Company to prepare a Prospectus to be approved by the Finansinspektionen (Swedish financial supervisory authority). Such a procedure would be costly, require significant administrative resources and would have delayed the rights issue.

”We want to reduce lead times in the development of Vagitocin®. Hence, it’s of utmost importance to start preparing for the clinical phase 3 studies as soon as possible”, says Johan Inborr, CEO of Peptonic Medical, “We also want to expand our pipeline with new oxytocin based products, and hence, we plan to generate efficacy data on a new indication during the coming months”.

The number of issued shares in the Company will increase by 1 428 572 to 20 602 984, corresponding to a share capital of 2,060,298.40 SEK as a result of this rights issue.

Partner Fondkommission AB acted as advisors to the Company in this transaction.

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For more information, please contact:

Johan Inborr, CEO

Phone: +46 708 853 893

E-mail: johan.inborr@peptonicmedical.se

About Peptonic Medical AB (publ)

Peptonic Medical AB (publ) is an innovative Swedish pharmaceutical company developing oxytocin based products e.g. for the treatment of menopausal symptoms, such as vaginal atrophy. Oxytocin has a long history of safe medical use and offers an alternative to estrogen and estrogen-like acting compounds for menopausal and postmenopausal women. Peptonic Medical AB (publ)’s mission is to develop safe and effective drugs based on oxytocin.