Cereno Scientific ends the financing solution with European High Growth Opportunities Securitization Fund

On 18 January 2019, Cereno Scientific (“Cereno”) announced that the company has decided to pause until further notice the drawdown of new convertible bonds in the funding solution the company entered into with European High Growth Opportunities Securitization Fund (“EHGOSF”). Cereno Scientific has now decided to completely end the financing solution. The Board is evaluating various alternate funding solutions to finance continued operations and the planned Phase II study of its drug candidate, CS1.

“The financing agreement we entered into with European High Growth Opportunities Securitization Fund (EHGOSF) has created opportunities for us to focus on achieving important milestones for the company and our drug candidate CS1. Strengthened by the positive milestones reached during the year, and the upcoming milestones ahead, we have decided to end the agreement. We believe that the current conditions are good enough to plan for the most favourable way forward for Cereno Scientific and our shareholders”, says Cereno Scientifics CEO Sten R. Sörensen.

In conjunction with the termination of the financing agreement, EHGOSF has chosen to fund two last tranches of SEK 3.5 million each, totalling SEK 7 million. Cereno has stated to EHGOSF that the company is not interested in further expanding outstanding convertible loans. Therefore, an agreement between the parties has been reached where EHGOSF is only allocated the warrants belonging to the two tranches, without the convertible loans that the two tranches otherwise would have generated. In total, 1,105,263 warrants will be issued, which gives EHGOSF the right to subscribe for 1,105,263 shares of class B at a strike price of SEK 1.9 per share. The warrants are issued free of charge and can be exercised during six years. Upon full subscription of these shares, Cereno would be added SEK 2.1 million. Included in the agreement is a clause on a lock-up period of one year where the warrants may not be sold or exercised. The agreement also includes a fee of SEK 1 million which Cereno will pay to EHGOSF.

Following the termination of the financing solution, convertible loans of SEK 5.2 million and 2,247,569 warrants will be outstanding. The termination of the financing solution means that neither EHGOSF nor Cereno have the right to drawdown new tranches of convertible loans. However, EHGOSF remains entitled to convert the outstanding convertible loans, in which Cereno may choose to issue new shares or repay the loan in cash. Cereno's absolute ambition is to repay the loan in cash to avoid further shares being issued to EHGOSF.

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For more information, please contact:
Sten R. Sörensen – CEO
Tel: +46 733 74 03 74
E-mail sten.sorensen@cerenoscientific.com

About Cereno Scientific AB
Cereno Scientific is developing a novel preventive medicine to treat thrombosis-related disease, based on the body’s own intelligent clot-busting system. Cardiovascular disease is currently the leading cause of death worldwide. Current therapies are connected to an increased risk of bleeding and, as a result, low effectiveness due to lower dosing levels. In turn, this leads to a high risk of new blood clots. Cereno Scientific’s drug candidate, CS1, is expected to provide a possibility for an effective prevention of thrombosis and a lower risk for serious bleeding complications than with current blood thinning therapies. CS1 is an innovative controlled release formulation of a known compound and, as such, is expected to have a relatively short development time. The Gothenburg-based company is located in AstraZeneca’s BioVentureHub and is supported by GU Ventures. Cereno Scientific’s B share has been listed on Spotlight Stock Market since June 2016 with the ticker CRNO B, ISIN SE0008241558.

This information is such that Cereno Scientific AB is required to make public in accordance with the EU’s market abuse regulation (MAR). The information was made available publically by the Company’s contact person on Mars 1 2019. 


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