Aerocrine completes issuance of shares and convertible bond raising a total of SEK 361 million

​SOLNA, Sweden – 20 October 2010 – Aerocrine AB (OMX Nordic Exchange: AERO B) today announces the results of the Company’s rights issue.  The rights issue increases Aerocrine’s equity by a total SEK 136.1 million.  Previously, Aerocrine announced a combined placement of equity and the issuance of convertible notes to Novo A/S raising a total of SEK 225 million.  Overall, the Company’s financial position has been strengthened by approximately SEK 361 million.

Aerocrine announces that the Company’s financing process has been finalized and a total of SEK 361.1 million has been raised from:

i)  The previously announced offering in September to Novo A/S of new shares at an offer price of SEK 7, raising SEK 112.5 million,

ii)  The issuance of a convertible note to Novo A/S raising a further SEK 112.5 million (with a conversion price of SEK 8.75 per share), and

iii)  The October rights issue of SEK 136 million (before transaction costs) to current shareholders with a subscription price of SEK 7 per share.

Overall, this means that the number of shares outstanding increased by 35.5 million to 102.2 million shares. Upon full conversion of the outstanding convertible loan, an additional 12.9 million shares would be issued.

Over the past year Aerocrine has achieved several important strategic objectives, including successful product and technology developments, initiation of private payer reimbursement in the U.S. and strengthening of the Company’s patent portfolio.

The issue of shares and convertible notes was carried out to strengthen Aerocrine’s financial position and to provide the Company with a new strategic shareholder.  The substantial bolstering of Aerocrine’s financial position and the addition of Novo A/S, a strong specialist healthcare investor, as a major shareholder will enable Aerocrine to:

i)   Accelerate activities to achieve full reimbursement and generate additional revenues in the clinical market

ii)  Exploit the Company’s leading technology position and the previously announced Panasonic collaboration to further the adoption of exhaled nitric oxide monitoring as a routine clinical practice in the doctor’s office setting and take preparatory steps towards exploring the potential for home use

iii) Capitalize on investments made in the development and enforcement of the Company’s intellectual property portfolio

Rights issue

The final outcome of Aerocrine’s rights issue is that 19.4 million shares have been subscribed to, corresponding to 87.5 per cent of the shares offered. Of these, 18.2 million shares were placed through the exercise of subscription rights and 1.3 million shares without subscription rights. The rights issue increases Aerocrine’s equity by SEK 136.1 million before costs, of which SEK 88.1 million will be received in cash and the remaining SEK 48.0 million used to offset an existing shareholder loan.

Investor Growth Capital, HealthCap and Life Equity Sweden have, within the framework of the rights issue, offset their respective outstanding shareholder loan which, including accrued interest, totalled USD 7.2 million or SEK 48.0 million.

Those who have notified their interest in subscribing for shares without subscription rights have been allotted shares in accordance with the principles stated in Aerocrine’s prospectus. On 21 October 2010, settlement notes will be sent to the subscribers allotted shares and payment must be made no later than 26 October 2010. Only holders of those allotted shares will be notified.

Shares subscribed through exercise of subscription rights are expected to be listed on NASDAQ OMX Stockholm on 28 October 2010. Shares subscribed without subscription rights are expected to be listed on 8 November 2010.

The rights issue will increase Aerocrine’s share capital by SEK 9,719,665.50 to SEK 51,081,678.50 and the number of shares by 19,439,331 to 102,163,357 shares.

Swedbank Corporate Finance is the financial advisor and Mannheimer Swartling Advokatbyrå is the legal advisor to the Company in connection with the rights issue.

For more information, contact: 

Paul de Potocki, CEO, telephone: +46 8 629 07 80

Michael Colérus, CFO, telephone: +46 8 629 07 85

This press release may not be made public, published or distributed, directly or indirectly, in or into the United States, Canada, South Africa, Australia, New Zeeland, Singapore, Hong Kong or Japan

About Aerocrine

Aerocrine AB is a medical technology company focused on the improved management and care of patients with inflammatory airway diseases. The pioneer and leader in the technology to monitor and manage airway inflammation, Aerocrine markets NIOX MINO® and NIOX® Flex. Both products enable the fast and reliable measurement of airway inflammation and may thus play a critical role in more effective diagnosis, treatment and follow-up of patients with inflammatory airway diseases such as asthma. Aerocrine is based in Sweden with subsidiaries in the US, Germany and the UK. Aerocrine shares were listed on the Stockholm Stock Exchange on 15 June 2007.

Aerocrine may be required to disclose the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 11:00 [am] on 20 October 2010.

IMPORTANT INFORMATION

In certain jurisdictions, publication or distribution of this press release may be subject to legal restrictions and persons in those jurisdictions where this press release has been published or distributed should inform themselves about and abide by such legal restrictions.

This press release may not be made public, published or distributed, directly or indirectly, in or into the United States, Canada, South Africa, Australia, New Zeeland, Singapore, Hong Kong, Japan or in any other country where such action is subject in full or in part to legal restrictions, nor may the information in this press release be forwarded, reproduced or disclosed in any way that is in conflict with such restrictions. Failure to follow this instruction may involve a breach of the United States Securities Act of 1933 ("Securities Act") or applicable laws in other jurisdictions.

This press release does not contain or constitute an invitation or offer to acquire, subscribe for or otherwise trade in shares, subscription rights or other securities in Aerocrine. Invitation to persons concerned to subscribe for shares in Aerocrine was made through the prospectus that Aerocrine published in September 2010, which among other things contains financial statements and information on the board of directors and auditor of Aerocrine.

Neither the subscription rights, the paid subscription shares (BTA) or the new shares will be registered in accordance with the Securities Act or any provincial act in Canada, and may not be transferred or offered for sale in the United States or Canada, or to persons resident there, or on behalf of such persons, other than in such exceptional cases where registration in accordance with the Securities Act or any provincial act in Canada is not required.